Long gone are the days when only the old and aged could purchase homes with the support of their life savings. Almost 3 decades ago, the representation of an Indian home buyer was: Someone over 50; cashing on his PF to finally achieve his dream of becoming a proud home owner. However, present Indian home buyers are younger than ever – falling between the age group of 34-38 years, colonising big shares of sales deeds.
Nuclear families with the support of their dual incomes are the favoured client ‘configuration’ for both banks and other financial & home loan lending companies. The combined credit-worthiness and a healthy risk profile have kept intact the ability of today’s buyers to buy a sizeable home at their preferred location.
This article is for all those young and married/soon-to-be-married couples who want to invest in a residential property, looking at the worth and capital appreciation potential of the property.
For the time being, we will keep our focus on the first set of home buyers – Young, married couples looking for Flats for Sale in Kochi.
The Starter Home
It is important for the young buyers to know and analyse both the current and future financial situations, and balance out the same with current home needs. The idea of ‘starter homes’ is a new thing in the Indian society, and is holding ground on the fact that young couples both prefer and have the capacity to invest in a residential property in the early stages of their career and/or married life. Generally, these starter homes are as big as they need to be, with a location that is well connected for an easy commute between home and work.
Buying a Starter Home works on the principle of securing a residential place which falls within one’s existing means, and slowly and steadily upgrading it to a larger home as family and budgetary capacity grows. For that, it is imperative to invest in a Starter Home with a good project in a well-connected location and equipped with modern amenities. Having all this means you will be able to sell it off quickly and at your preferred price when the time to invest in a big and better home comes.
Again, it is important to understand that investing in a Starter Home is not the only choice for the current first-time home buyer – couples with stability and more income can and should invest in larger homes.
Let’s discuss the real estate market’s primary fact – a budget for purchasing a home is not something that revolves around the financial ability of the home buyer alone, it is often the home buyer’s personal choice.
Deciding the Budget
When it comes to deciding on the amount of money to spend, much relies upon whether the family has single earnings or dual earnings. For a single income family, a big size Starter Home in a luxurious project at one of the best locations in the city is a big thing. But for a dual income family, members can stretch their capacity. Again, it is important to never over-stretch. The focus should be on other needs as well.
Buy versus Rent
For young and newly married couples, buying a house in the initial years of marriage is on their priority list because:
- It frees them from paying rental expenses which bring no returns.
- Involving with a fixed monthly EMI means having a clear picture of what and how much can or should be spent for other investment options.
- Having your own home brings security, comfort and stability in one’s life.
Current Market Scenario
The whole world has seen substantial rationalisation in real estate prices, with India being no exception. For which, properties in most cities have become affordable and the market has seen a sudden change in the way current potential buyers are approaching the real estate projects. Also, with ready-to-move properties, the buyers don’t have to bear that torture of “waiting for possession”.
With RERA coming into effect, buyers need to know that there won’t be a further drop in prices and that it is the right time to invest in Flats for Sale in Nagpur.
Underlying Principle of Investment or Emotional Worth, or Both?
Property appreciates in the long run. Many consider this as a universal truth, as owning a property is an asset, which brings pride and security for the home owner. In India, real estate is a performing asset, which brings rental income or saves one from paying rent while appreciating in worth.
So, if you are a newly married couple, it is time to negotiate and settle in for a home purchase.