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Are You A Smart Home Buyer?

Are You A Smart Home Buyer?

Are You A Smart Home Buyer?
(Dreamstime)

Kushal Pathak, 27, has been investing a great deal of his time to study about the property markets. The Mumbai-based banking professional has, in fact, gained a vast knowledge on the subject ― which are the most affordable localities in Mumbai, which suburban localities offer good connectivity, which bank provides the cheapest loan, etc. All Pathak is waiting for now is the right time when he should book a home. He has been reading about the expected fall in property prices in the future. Right when he thought the time was ripe for him to start his move, his bank decided to lay off 200 employees, Pathak included. As luck would have it, Pathak's home buying plans were, even if temporarily, shattered all of a sudden.

His example teaches us one thing about property investment. You might have acquired all the knowledge required to strike a perfect deal when you go home shopping. You might have also been keeping yourself abreast of new developments to keep yourself updated. But, does going by the book make you a smart buyer, too? Probably not.

A smart buyer would know what time is suitable for him to invest. He would wait and watch for the right time to buy a home. You can never be certain that a slow market would be the best time for you to invest in property because prices have gone down. What if you are facing a personal financial crisis at that time? Similarly, there is no point sitting and waiting if you have enough finances, only because prices are comparatively high at that time. In short, it's your personal financial position that has to be the decisive factor.  

A smart buyer would also not be pressured into rushing his decision. Exactly like Umakant Jha. Not a single day passes when Jha, a 35-year-old who is into insurance profession, is not told by his family ― they live in a rented accommodation at Delhi's Uttam Nagar locality ― that he should buy a house as soon as possible. People his age do not live in rented houses, he is often told, especially when banks are so eager to offer people loans. The friendly banters of his friends and colleagues who have bought properties are no less cutting. As pained as Jha gets from all the unctuous suggestions over the matter, he knows he cannot afford to buy a property at the moment. He has a family of four to run; he has a wife and two children. And, he is the only earning member in the family. The burden of debt would be too overwhelming at this point. He needs to save more; the debt amount has to kept at the very minimum.

Last Updated: Wed May 03 2017

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