Is It Wise To Buy A House In India Despite The Rising Prices?
Prices of real estate in India have experienced a significant rise in recent years, leading many potential homebuyers to question the idea of buying a house. While escalating prices can be a concern, it is crucial to consider various factors beyond the immediate cost. In this blog, we will delve into the factors you can consider to buy a house in India despite the rising house prices but before that let’s just have a quick glimpse of the real estate market in India.
How Is The Real Estate Market In India?
According to IBEF, real estate in India is expected to reach US$ 1 trillion in market size by 2030. The Indian real estate market has witnessed steady growth over the past few years. One of the main drivers of growth in the real estate market in India is the increasing demand for housing. With the country's growing population, rising incomes urbanisation, changing lifestyles and the rise of nuclear families there has been a significant demand for residential properties.
Factors To Consider Before Buying A House In India Despite The Rising House Prices
1. Save More By Thinking Long-Term
When investing in real estate, it’s important to adopt a long-term perspective. Real estate has historically only appreciated in value over time, and by looking beyond short-term fluctuations, homeowners can focus on the long-term value of their investment. But before jumping into buying a house, choose a good location with growth potential and evaluate future infrastructure developments in that particular area. This will help you make a better return on your investment.
It is also a good idea to buy a home in spite of the rising prices because it provides the benefit of owning a tangible asset. Unlike other investment options, real estate offers a sense of security and stability. Homeownership will also provide you with the freedom to customise and renovate the property according to personal preferences without relying on a landlord’s approval or finances.
2. Real Estate – A Real Good Investment
The prices of real estate are going up because of heavy inflation. This means that in order to protect yourself from even higher mortgage rates and home prices, it might be a good idea to buy property now. Real estate is a good investment because it has the potential to generate rental income and create a passive cash flow stream. Renting out your property can help offset mortgage payments or be a significant income source. The potential for rental income adds to the overall financial viability of buying a house.
Buying a house is also an opportunity to diversify one's investment portfolio. Real estate is a unique asset class that often performs independently of other investments such as stocks or bonds. Including real estate in one's investment portfolio can reduce overall risk and provide a hedge against market volatility.
While interest rates also play a crucial role in determining the affordability of a home, it is important to remember that interest rates can fluctuate during the entire loan tenure, which makes it difficult to predict the long-term financial implications of a home loan. Instead, potential homebuyers should consider the stability of their income, evaluate their ability to repay the loan over time, and factor in future earning potential as well as financial stability.
Despite the rising property prices in India, buying a house can still be a wise decision when approached from a long-term perspective. Real estate is a lucrative investment in the long term, so it is important to consider long-term financial stability and the potential appreciation of the property before purchasing. With careful research, planning, and an understanding of the market dynamics, homebuyers can make informed decisions and secure a valuable asset for the future.
Want to know why investing in real estate now is the right time? Check this blog out- Top 8 Reasons Why You Are Right About Buying A Home Now!
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