With interest rates on a downward spiral and prospects of getting a good deal on a house, the real estate sector could witness some buying in the coming months.
Though property consultants recommend waiting for a few months for the right price, some home-seekers may be tempted to kick off their house-hunting expedition soon
Time for shortlisting
While there is no need to rush into a decision, you can start looking out for a house right away. "Once the market bottoms out, home-seekers will start making a beeline for properties and loans. If you have identified your ideal home beforehand, you will be a step ahead," says KPMG director Ashish Shah. You can jump at the earliest opportunity available — in terms of price and interest rate.
Lack of buying activity means that the market is skewed towards the buyer at the moment. "You can start quoting a price that seems reasonable to you. Try quoting a price that is 50% less than the highest price of a property in the locality commanded in the past," suggests a financial planner Kartik Jhaveri.
Identify your needs and capacity
Your heart may be set on a plush residential complex replete with state-of-the-art facilities, but that should not make you lose sight of your basic needs. For instance, if the well-equipped complex is not close to a railway station/bus stop, and you do not own a private vehicle, then commuting could turn out to be a nightmare.
Hence, when you commence your house-hunting mission, it is advisable to keep a list of must-have attributes ready. In addition to quality of construction, evaluate the existing infrastructure. Finding a perfect house is nearly impossible, but comparing shortlisted properties will help you zero in on one that meets majority of your requirements.
"This apart, the present and future market drivers, financial ability and personal investment objectives should be borne in mind," says Raminder Grover, CEO, Homebay Residential, a subsidiary of property consultancy firm Jones Lang LaSalle Meghraj.
A ruthless assessment of your financial situation — current as well as future — is essential; factor in possible pay cuts and job loss. If you are planning to sell your old flat and buy a new one, it is better to do so only after securing the sales proceeds. Though bridge loans meant for such funding gaps are available, in the current scenario, it is better to steer clear of avoidable liabilities.
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