Investing in real estate has become a trend in India. Not just the residents, the NRIs are also showing great interest in Indian properties. Owning a home is a symbol of prosperity, but it should more than reflect wealth. Although investing in gold and mutual funds is more convenient and beneficial, real estate tops the list. 2007 was hailed as the golden age of real estate in India and the boom subsequently moderated, but it looks like ‘Achhe Din’ is back. The number of home buyers is increasing. There will always be a need for homes to live in, so it makes sense to buy a property. Let’s look at some facts one needs to know before buying a property this year.

one. To live, one needs four walls and a roof, so that’s a necessity. But the return on investment is proven. Within a short duration like a year or so, the appreciation will be pretty flat. Magic can only happen when the Government. plans something for the best infrastructure of the location. When the growth is only 4 to 5%, it is not prudent to pay 9.5% of the loan arranged for the purchase of the property. This was when one wanted to liquidate the assets for a shorter period of time. If one plans to keep the property for more than 5 years, real estate participation can be good.

two. Move-in ready properties are preferable to those under construction because the return is instant in case the house is rented and there is no delay in possession. With inflation rising and the need for comfort and convenience diminishing, affordable housing units are selling fast and for the young or newlywed, renting is a more likely option. One should continue to rent a house if the monthly EMI is more than the monthly rent.

3. It is advisable to pre-approve the loan so that the purchase of the property is not delayed due to paperwork, but there is a catch. One must finish the deal within 8 months in a row, otherwise the loan processing fees have to be paid again. Consider finances. The higher the down payment, the more loan you can take out from the bank and the lower the EMI. Less EMI means less pressure on the monthly budget. So before you buy a home, try to manage your down payment as much as possible.

Four. Rent, rent, rent! One must never forget the oldest rule of buying property. Houses in the suburbs can be purchased at more flexible prices than those in the city. They are on the outskirts, away from the hustle and bustle of the city but closer to city life. Prime locations are not in everyone’s budget, but these extended locations are connected to all major locations and can be a good bargain if one is planning to buy a property this time.

5. Invest in the builder with a good track record and results. If someone is planning to buy a property in the state that they do not know, it is advisable to go with reputable builders. Instead of going blind, you can hire a professional agent with considerable experience.

Property prices in India are level. There is no room for correction. Builders already have the huge inventory they need to sell. The price is already the best they can offer, so buy a property now before the Indian real estate market turns around.