Is it the Right Time to Buy a 1 BHK Flat in pune
Have you, at some point in your home buying journey wondered, “Is investing my money in a flat actually a good idea?”
Let me tell you, you are not the only one having second thoughts about spending your hard earned money on a new flat in Pune.
Like most first time home buyers, they too were battling doubts, and wondering if all this effort is even worth it.
So let me go ahead and share with you, the one undisputed fact that my extensive years of experience in the real estate sector has taught me.
i.e., A home is the best investment to secure your future and your money.
Here is why:
A Safe and Secure Future:
Buying a house provides the discipline to begin building wealth for loan repayment. At the end of it, you are the owner of a massive asset.
Over the period of your loan term (say 20-25 years) your salary inflation will erode your debt and make payments and other savings easy for you.
During unforeseen circumstances (death or loss of job), your family can sell the house, recoup the purchase price and live a comfortable life.
With declining interest rates on home loans, buying a house is more practical than renting. On paying EMIs, your money is being put to productive use unlike paying rent where there are no returns.
Interest on loan – The biggest tax break for most home buyers comes from the deducting loan interest – the interest charged on the home loan.
Property tax – You can deduct the local property taxes you pay each year.
Now, coming to the most important question.
When is the right time to buy a house in Pune?
I would say, now would be a great time.
I have listed the most compelling reasons, which indicate that investing in a home in Pune now would be the smartest decision.
Home prices: Real estate rates are considerably subdued thanks to India’s political and economic scenario – the two macro factors that affect property prices.
Proximity: With rapid urbanization around areas like Hinjewadi and Kharadi offering jobs and inviting more people to the city, another major factor to invest now is the potential of the location. Existing, ongoing and upcoming infrastructure developments (metro, shopping complexes, schools, hospitals) and access to prime locations of the city are key.
Festive offers & home loan discounts: In a diverse city like Pune, all festivals are celebrated with opulence. It’s during this time that banks buzz with activity and most provide handsome discounts on home loans. It’s a great opportunity to buy a property at lower rate of interest because you can save more money in the process. Several banks also offer discounted interest rates for women buyers.
No hike in EMIs: The Reserve bank of India has left the repo rates unchanged (the rate at which the RBI/central bank of the country lends money to commercial banks in event of shortfall of funds) leading to stable EMIs on home loans.
Home loans may get cheaper: With inflation dropping substantially, the RBI may cut the policy rate much before their decided January 2016 deadline. This will mean home loan EMIs will also lower.
Satellite Cities: With the development of 100 new ‘smart’ cities as suggested by PM Narendra Modi, it offers a great investment opportunity. This is attracting a large number of NRIs and HNIs to invest in property in Pune.