When you reach a certain age, you may want to own the roof over your head. There is no denying the fact that everyone wants to own the best house one day. However, you need to find out the right time to buy a house for you. Well, there’s no magic alarm that helps you to decide the right time for you and your family to buy a house. Still, there are some factors that should be considered.
These factors fall into two categories: your personal life factors and market factors.
Personal life factors:
Your Financial Situation:
Buying a house is a major financial commitment and you should make this decision based on your own financial situation. So before you buy a house, you will have to consider whether you have enough money to own a house with your own resources. If not, you will have to take a home loan. Check yourself whether you have the income and credit rating to qualify for the home loan. After qualifying for the home loan, choose a bank which will charge you the lowest rate of interest.
Additional Expenses
If you get the home loan, you will have to make a down payment of 10% to 25% of the total home's purchase price. In addition, you will have to manage other expenses such as stamp duty to get the house registered in your name. Some of the other additional expenses include property taxes, insurance, payments for power back up, water storage, sewer, and garbage management and many other amenities. Apart from these expenses, you may have to buy some additional furniture and fittings to meet your needs. Also, you should not forget the expenses involved in moving to this new house.
You Have the Savings
And that is not the end. After managing all these expenses, you should have enough leftover in your bank to meet any unexpected expenses like medical and any other. Therefore, this becomes your life’s biggest financial commitment. So, now ask yourself whether you can afford to make this kind of commitment, at this point in time. Also, you must consider what if you would lose your job. Would you still be able to pay the EMIs?
No Commitment Issues
Before buying a house you should ask yourself first whether you want to stay in this particular city or area like Noida, Gurugram, Chandigarh, Pune & Mumbai would your next job match with this area? If you have an idea about the job transfer, its better for you to renting a house rather than buying one. You should buy a house only if you plan to stay here for at least the next ten years. So the right time to buy a house is only when you are sure that your current job is permanent and you are not likely to move to a new city anytime soon.
Market Factors:
Before buying a house, you should consider the current rate of interest. Lower interest rates will lead you to lower monthly payments.
Always pay attention to the current residential real estate market. The trend of the realty market is linked to demand and supply. If the demand for housing is low and the supply is high, the prices of the property will be low. This is known as a “buyer’s market,” when there are lots of homes on the housing market and not much competition for them. in order to get their homes sold, sellers are usually willing to reduce their prices or make some other concessions. So, the right time to buy a house is during the recession because you will get the best deal.
Buy a Home When It Feels Right for You
Buying the right home for you and your loved ones to enjoy is ultimately a lifetime decision, and there are no hard and fast rules that you can completely control or beat the market. Just consider the financial situations, career stability and the current trend in the housing market that makes the best time to buy a home of your dreams.