Buying a home, second-hand home, used home investments, investments, financial planning
Buying a home as an investment
It is a common trend in India. As soon as you get a new job, the next big thing in your life would be investing in a home. House property is a huge investment, thanks to the flexible home loan plans and smart options provided by the builders, anyone can invest in a home. Buyers have a wide variety of choice with respect to the size of homes or the type of home loan.
Indian real estate industry had a tremendous growth in the past decade. Even with a slump in the recent years, investing in a house property would never go out of trend in India! It is sure to give you good returns in a long run. Having said that, you should never fail to assess the right time to invest in a house property.
What is the good time to invest in a home?
We cannot predict the price fluctuations in the real estate industry unless you are an expert. Before buying a home as an investment, observe the property rates in the area, the income of your family, and also the home loan rates. These are the three major factors that you should consider before investing in a home. The other factors include:
- Proximity to your workplace and your children’s’ school
- Government policies with respect to tax benefits
- Financial dependencies till the time the property gets handed over to you
New home vs second-hand home
What are the best types of house properties that you can invest in?
- A brand new property – in which you can settle down with your family
- A second home – for the purpose of future investment
Investing in a brand new property would be a great idea if it is your first home and you are planning to live in it sometime in your life. As with the current jobs, which involves global trotting, you may not stick to a single location all your life. If this is the case, then there is no point in buying a brand new house.
Buying a new home has a great advantage of getting a home loan. But, you may need to assess the builder, the documents, the delivery date, the schedule etc. Also, you may have to wait until the property is constructed. The period depends on the nature of the property, if you choose to buy a home in a high-rise building, you may even have to wait for more than 4-5 years!
The bottom line is, if you are planning to only invest in a house property, then consider buying a second home.
Benefits of buying a second home
- Cost effective – as compared to a new home in the same area
- No waiting time – you can buy it immediately
- Less paperwork – with a simple legal opinion, you can decide.
- Immediate rental income – you can let it out immediately.