There are quite a few factors that come into play, which makes buying your dream house a difficult decision to make.
For quite a few years, the real estate framework of India has been functioning under what can be best called “Time correction. “ In essence, it’s been there for almost a decade. Now time correction is definitely a fancy choice of word, rather than saying straight forward that prices of real estate have been stagnant. Soon, at some point, this stagnancy will cease to end, and real estate prices are expected to shoot up.
So, what leads to stagnation in the first place? Well, to begin with, prices were rising way too fast relying on the shoulders of the investors who were themselves clueless of whether they are pending heir money rightly. For many years, they continued to sell apartments among each other, quoting high prices, which in turn become too high for the market. These were mostly those individuals who would buy a flat to live in and not just for investment purposes. So, the stagnation of price is nothing but a certain period when the buying capacity for all real users is working to catch up with the floating price in the market. In several other parts of India, such occurrences combined with other factors have contributed towards acute distrust for real estate developers in the minds of homebuyers, which further worsen the scenario.
With time, a good number of potential buyers get converted towards emerging as actual buyers. Now, real estate doesn’t work like other investments. It’s unique from one project to another. Investment criterion serving a 2 BHK flat in North Kolkata would be markedly different from another property in another part of the city. One needs to understand that buying your first house is always a necessity for people, and it is only after buying and securing your first house when people think about a second option. As such, the second option is solely for investment needs, where the buyers are aware of the risks and everything else that it brings in its trail.
Besides, there are quite a few financial as well as psychological factors that come into play to make a house purchase a problematic proposition. Ours is an economy that is strictly modern as well consumerist, which makes sellers of real estate force their way into making customers buy the most expensive version of their offering. In a very similar manner, real estate developers try selling a house that is grand and high priced, calling it to be your dream home. Seldom people fail to understand that buying a dream house is markedly different from going on a vacation. Housing, as such, is all the way qualitatively different owing to the scale of the expense involved. This leads one towards a financial hole, which might take years to repair. Sometimes, during such a phase, a family might face a great deal of hardship, some leading to permanent damage.
There is certainly no denying that buying a house is one of the most important decisions of one’s life, and hence one should always consider rethinking their decision. Among all other mistakes that home buyers tend to make when considering investing in a property, overstretching one’s finance seems to be the biggest blunder. The fact that we human beings are territorial animals who succumb to temptation at the slightest provocation does no good to our financial decision. One should always go by the thumb rule that the monthly repayment for your house loan should not exceed one third the total of a family’s income. However, if your financial condition gets better at a later stage, you might as well choose to spend a little more towards clearing your loan at a faster rate. However, never choose to invest in buying a property in anticipating that you will have more money in the future. When that doesn’t happen, things will seem to topple even faster. Easy credit is yet another loophole in the system that leads to its most undesired by-product, which is debt. Our forefathers, no matter how deprived, didn’t get any chance to apply and get a loan application approved so quickly. They lived for the day, a majority, and bought only those that they were able to pay for at once and upfront. However, we are driven by the worldly pleasures that eventually land us in a financial pit hole, which only gets deeper with time. Sure, the EMI culture has made it possible for many to get their dreams and wants answered, but it’s a double-edged sword that both saves and cuts you in equal measures. So, take baby steps in planning your finances right before you embark on buying the house of your dreams.