Should I buy Now or Wait?
Here are a few points to consider that can help you decide on buying a home now or to wait.
Unemployment: Most builders watch for employment numbers to price or launch their new projects. When unemployment drops, housing prices increase. IT industry is one of the leading segments that drive housing prices in most cities of India, with a growth outlook of over 10% every year, builders are encouraged to launch luxury projects. Keep an eye on unemployment numbers and growth forecasts for industries in your city.
Inventory: Think of supply and demand. Reach out to various builders in your suburb to enquire about available units and pricing. Prices tend to rise when there are fewer units available. This isn't a good sign for a buyer as you will be forced to pay more for limited choice.
New Projects: Builders begin new developments when the growth outlook is stable. Watch out for new launches in different suburbs, these are indicators of potential developments.
Interest Rates: With high inflation, RBI has hiked the lending rates drastically which is over 10% now. Include these rates in the cost of your house. The flip side, builders hike prices once RBI reduce interest rates. Better option, is to opt for floating rates from nationalized banks.
The answer to the question, 'Should I buy now or wait?' is.. If you buy now, you would be in the company of some wise investors. As, Bangalore is still one of the cheapest cities in our country to own a home and is more driven by end user demand than investor demand as seen in cities like Mumbai or NCR.
Well, in real estate, we've got to invest and wait and NOT wait to invest.