When Is The Right Time To Buy a House

Hi there! As you have come to this page, let's safely assume that you want to purchase a home of your dreams, but are at a bottleneck in deciding when to take the leap. If so, these could be the reasons behind it -

• You are afraid of becoming a victim of scams in real estate projects

• You have no idea about the real estate market trends

• You hesitate in borrowing a loan

• You still think that your income isn't enough

Well, the crux is that somehow you believe that you need to wait for the right time to buy your home.

Trust us, the 'right time' is a myth. You can take the step whenever the circumstances around you are favorable. For instance, an increase in the tax benefits for home loan borrowers, decrease in interest rates, soaring share prices, salary hike, etc.

Here, mymoneykarma has listed several points that may help you in figuring out the best time to buy your dream home:

Are You Single?

Often, events such as marriage and childbirth are the triggers that lead people to purchase homes. This is quite ironic, as being single is the perfect time to take mortgages and build an asset. It is so because you don't remain overburdened with too many responsibilities at this stage.

Do You Have a Budget?

If you have an annual income that easily lets you pay monthly EMIs and other expenses as well as make savings to assist in downpayment, it indicates a green signal. Go ahead with your plan of turning your dream into a reality. 

In case you are afraid of borrowing credit now, then look at it this way; say you liked an apartment costing Rs.1 crore, but you skipped buying it because currently, you don't have a crore in your bank account.

Will you ever be able to buy it again? Sorry, but the harsh truth is that you wouldn't be able to afford the same home after a few years, as real estate prices soar with time.

Are You Averse to Government Scheme Benefits?

No? 

Good.

The central government introduced a scheme in 2015 - the Affordable Housing Scheme for All or Pradhan Mantri Awas Yojana - which is active till 2022. This scheme applies to both the urban and rural populations. 

According to this scheme, the government offers an interest subsidy of:

• 6.5% for Economically Weaker Sections (EWS - households with an income range of ____)

• 6.5% for Low Income Group (LIG - 3 Lakhs-6 Lakhs).

• Middle Income Groups

  • 4% for Middle Income Groups-I (6 Lakhs-12 Lakhs) 

  • 3% for Middle Income Groups-II (12 Lakhs-18 Lakhs). 

The eligibility condition to avail this scheme is that you shouldn't have a dwelling unit on your name or in the name of any family member, in any part of India.

If you don't have a home yet, you come under any of these brackets, and are able to manage down payment; then isn't it the right time to buy a home for you? 

For people who prefer under-construction properties, the GST has been reduced from 12% to 5% recently, thereby bringing down the overall cost.

Here is the thing - these schemes are temporary. Hence, to get a benefit out of them, you need to take a quick step - this is the right time for you. 

Do You Have a Good Credit Score?

If you have a credit score above 700, then there are good chances that you will get approval on the home loan.  In case you are a credit card user but haven't checked your credit score yet, then use mymoneykarma's credit score tracker to pull your credit report.

To Sum Up

We hope the above points have helped you in deciding whether it's the right time to buy your home or not. However, do remember that if you think this isn't the right time, then it will never come, as chances are that the price of a house will always remain higher than your savings. 

If you are ready it, apply for a home loan right away with mymoneykarma! We promise you a hassle free process, as well as the best interest rates.

Wish you all the best!