As the Indian mindsets have been conditioned, we have a high level of fascination for owning our very own home. No matter how beautiful or convenient our rented home is, the feeling of being settled and being comfortable only comes in your own home. And therefore, since we consider our ‘own’ home one of the most important aspects of our lives, we put many efforts and resources in making a decision about the same. Buying a home involves a great amount of our life-savings to be used to fulfill the dream.
If we look at the statistics of the last ten years, then we will see that the average age of an Indian to buy his/her own home has come down to 30 years. Some of these young buyers may be buying homes for purely residential purposes, while some may be buying it for an investment purpose.
Now, no matter what reason you may have to buy a house, here are some reasons why you should definitely ponder and evaluate buying your dream house in this financial year –
1. The new budget gives the provision of easier approach to getting institutional credit. This may also include getting foreign funds with low interest rates. By this provision, the total cost incurred in construction by the developers would be less as their cost of borrowing would reduce. But, this will result in more housing projects coming up and this can make the prices very competitive.
2. The residential market has been witnessing a certain kind of gloominess since a long time now. There is a high downfall in the sales and the developers are trying to sell off the inventory which is in bulk. This works in the favour of buyers as they will be able to get better deals. Developers are reducing the cost of the flats and this makes them very lucrative for the buyers.
3. The most talked about initiative of the government, granting infrastructure status to affordable housing, is expected to uplift the situation of this segment, which otherwise was going through a slump. Many private developers are coming up with new affordable housing projects and are even modifying their existing projects to convert them to affordable homes. Even the financial institutions are expecting a growth in this segment and are therefore analyzing projects which they can help with funds. For us Indians, we consider some occasions auspicious to buy homes, and Diwali tops them all. So when Diwali will be approaching, one can expect multiple projects to launch in the affordable housing segment.
4. Now that the RERA has been implemented all over the country, government is making efforts to reduce the vicious circle of approvals that the developers have to follow and will apply a single-window system. When GST will enter the system, this segment will be regulated in a better way. RERA will lead to increased credibility and accountability to increase the efficiency.
5. RBI has launched a new approach for the banks to use standard lending rate, which is, Marginal Cost of Lending Rate (MCLR). MCLR seems to be more powerful with regard to the previous system of base rate. Moreover, with the move of demonetization, banks are facing low deposits which has caused lowering of MCLRs. And this lowering of MCLRs will give the homebuyers a vast variety of loan schemes, which they can choose according to their suitability.