Buy a home now or Wait for the right time

Fence-sitter is a common term when speaking about residential real estate. He / She is the one who plan to buy something but waiting for a correct time. The reason is the dilemma of that respective individual whether to take the shot or not.

There are multiple reasons for an individual to postpone his buying decision. Some of them includes

1. Taking Responsibility:

Being financially ready is one of the profound doubts many buyers confront with. Buying a house with a home loan is one of the biggest financial decisions in one’s life. Because it has great impacts in future.

2. Option & Budget:

Choosing the right property in your desired location is mammoth task. Because there are many properties, and it is difficult to inspect every property in person. Doing site visit without buying also creates feedback loop of not taking decision.

3. Doubts:

Doubt haunts when a buyer is planning to buy under-construction properties. And it is valid too. Several questions arise about project delivery, builder’s credibility, quality of the project, and so on. In order to know these speak with previous buyers, check online forums, read reviews about the builder.

4. Regret buying high:

Most people are undoubtedly on the uncomfortable fence because of this uncertainty. Even with a loan with a long term, purchasing a home is a significant expense. People are concerned that if they make a purchase today, the price will drop a few months later. They will have already committed by that point, and it will be too late.

"Let the price come down"

The buyer has visited the display apartment in a project that is still in the planning stages, likes the facilities and location, and has the money for a down payment. If the buyer makes a solid decision, the builder has stated that he is willing to offer a little better pricing. The project is doing well financially, and daily website traffic is increasing.

The buyer, however, has a sneaking suspicion that the "market will crash" and prices will soon fall, perhaps as a result of what some others have informed him.

The fourth explanation, in contrast to the other three, has absolutely no support. One of the darkest periods for the Indian economy and for every Indian was the Covid-19 pandemic. During the first and second waves, many people lost their jobs, and migrant construction workers fled the sites and went home.

Consumption slowed down, the mood was quite downbeat, and financial confidence was extremely low. Even at that time, when blue-chip stocks were also falling, house prices remained stable. Rents undoubtedly increased significantly as a result of city dwellers returning to their hometowns to wait out the pandemic. However, despite all the dire forecasts, home prices remained stable.

Not only did they maintain their stance, but the desire for owning housing surged as well. After 4-5 years of stability, property prices are now growing rather than falling. The only thing that will happen if the property our prospective homeowner is holding out to purchase is an increase in price as time passes if it is in a decent development by a reliable builder.

Builders that lack the funds to finish their project do not offer "distress sale" prices to get rid of it. Instead, many of them are partnering with wealthier builders to finish the project in accordance with RERA rules.

Price Correction:

No price adjustment in the housing market is on the horizon. The ideal time to purchase a home is right now, according to experts, and this is true since property costs will never again be this reasonable.

The most recent news indicates that in 2021–2022, India's GDP increased by 8.7 percent, reaching a 22-year high. Despite the Omicron outbreak slowing GDP growth to 4.1 percent in the most recent quarter, house sales and prices have remained solid. According to a Reuters survey, the price of real estate in India will increase by at least 7.5 percent in 2022 and by 6 percent in 2023 and 2024.

Nobody should fall into the trap of waiting for prices to drop while sitting on the fence right now. Homebuyers who are aware of this and act quickly to purchase a property will have obtained excellent deals by locking in the existing rates and taking advantage of the still-attractive interest rates.

Waiting for cheaper costs is not a good justification for delaying the purchase of a property. It does not follow that these other factors are not significant. This needs to be clarified if there are any questions regarding the builder or project. Absolutely no one should invest in real estate or buy property in India that is not RERA certified. There is a wealth of information regarding projects registered on the RERA website.

I am Real Estate Consultant for over three years and worked on various Residential Projects in many cities.