Introduction to buying a house in 2022
Almost every Indian dreams about owning the roof above their head. In a country where renting a house is not the goal for a majority of people, it is important to have proper knowledge about the important aspects of buying a house. The real estate sector in India has suffered a lot as a result of the repercussions of the pandemic.
Reports indicate that at present, a high inventory of unsold units exists in major cities. Additionally, the market indicators are also pointing at favourable price points for buying a house this year. To know what the Union Budget 2022-23 has in it for the real estate sector, check out our blog post here.
As these combined factors account for a buyer-friendly market, it is great news for people scouting for apartments. However, keeping in mind a few things while buying a house would make the commitment a stress-free one.
6 Crucial points to keep in mind while buying a house in 2022
First of all, don’t jump the bandwagon seeing the falling rates of home loans! It is one of the biggest mistakes that many people end up making. They buy a house that is way too expensive, just because the home loans are being offered at low rates. This type of calculation usually goes wrong sooner or later.
Especially, if you were assuming to have more income in the future. Although it is great to be positive, it may not always happen at the expected time. Even a worldwide economic interruption such as COVID-19 could cause a great problem.
COVID-19 has also taught people the importance of having an emergency fund. Although most of the youth are either spending money or shifting into investing, saving money is still one of the most important things that should be taken seriously. While investing is a great idea to grow your income, there is always a small chance of failing.
So, even if you do invest, have a proper amount allotted to the emergency fund, which will remain untouched. Having a home loan is probably one of the biggest liabilities of a person’s lifetime. Don’t make it more burdensome by taking wrong decisions. Always ensure to have enough savings to sustain for 6-12 months without new income flowing in.
The next step is to ask yourself an important question while buying a house. Would you prefer to stretch yourself at present and pay as much downpayment as possible? Or, would you pay an extremely comfortable amount as a downpayment and continue to pay monthly instalments for a bigger tenure?
There is no right or wrong answer here. It is all about choices and present needs. Perhaps, you need to shift to a new house as soon as possible. But, keep in mind that paying a large sum as a downpayment will reduce the tenure and you will end up saving a little more than a person who pays a small amount at the beginning.
On top of this, you will also have to ensure that you don’t empty your hand by spending the emergency fund. In conclusion, an emergency fund and a bigger downpayment will go a long way in reducing your financial pressure.
Now, let’s talk about the EMI for buying a house. You have to be cautious regarding the commitment you make to the bank. A larger EMI will free you from your loan sooner. But, have you calculated your monthly requirements well enough?
Are you prepared for months when you will have more expenses than usual? Here, the emergency fund can help. Just make sure it is large enough to handle this type of situation multiple times. Along with that, it’s a good idea to cut down your unnecessary expenses as much as possible while buying a house.
When we talk about home loans, we absolutely cannot skip the most important thing needed to get one! Your credit score. Make sure that you have checked your credit score and it is above 750. A high credit score is needed to even get started in this process.
Banks will not provide you with a large home loan if your records are not good. Also, regular checks must be done to ensure that your updated score is correct. Otherwise, it would affect your approval chances negatively. After all, you must have been dreaming of buying a house for so long. So donot take your credit score lightly.
The Union Budget 2022-23 has made an important announcement regarding all non-agricultural, immovable property with selling price and stamp duty value above 50 lakhs. It says that a homebuyer must deduct TDS at the rate of 1 per cent when buying a house or any other property, based on the amount paid to the seller or stamp duty value, whichever is larger.
Hopefully, you found a few important pointers regarding thing things that you must consider while buying a house in 2022. To read more informative blogs, keep checking out this space again soon.
About Protech:
We at Protech make constant endeavors to help build better properties in both the residential and commercial sectors in Guwahati. We ensure minimal wastage of resources during construction, especially water. Also, you will find a lot of Vastu compliant properties.
If you too are looking forward to buying a house in Guwahati, Assam, Protech Group is the best option. Our years of experience in the real estate industry and understanding of the market allow us to introduce you to the best in the city.
To know more, you can connect with our experts today by clicking here. We also hope that you enjoyed this read. Don’t forget to check out our blog again soon.