As we all know, in the past real estate was a male dominated society where only men made any decision to buy property. But, year after year, today’s trend has completely changed. Nowadays, in the modern world, families now give equal importance and decide to buy a house together.
The needs of women, children and senior family members are considered and then a final decision is made. If you have an apartment, you also get freedom and security which gives a unique feeling. However, buying a home is not an easy decision and it takes a lot of hard work. Thus, evaluating a good place to live is not straightforward.
This cannot be fixed on a single factor and, therefore, there are various socio-cultural and economic processes associated with the purchase of property.
Above all, the influence of the family is undoubtedly the strongest and most important. There was a time in India when there were only male earners in the family. And, which empowers all of them to make major financial decisions, such as the purchase of property by the male head of the family. Moreover, such decisions were always accepted and respected by other members of the family without any reason.
But now things have changed. As women members of the family are earning the same today, they participate in every decision. A large number of households in urban India now have double incomes and women have become important family decision makers. Beyond doubt, when the problem is as important as buying a property for sale. Women today walk shoulder to shoulder with men and have the same right to vote, whether they have jobs or are housewives.
Let’s better understand the factors that affect property purchase decisions
- Children’s Needs While Purchasing Homes:
Today the needs and desires of children are skyrocketing and every parent is desperate to meet them. Thus, the preference of adult family members is no longer the only focus when buying a home. Nowadays the needs of children are equally important and they are also considered when buying a new property.
Indian parents are looking forward to a home that creates a safe, supportive and friendly environment for their children. According to their budget, most Indian households prefer larger homes in the gated community. When looking for that perfect space, they also want to make sure that the property they buy has abundant ventilation and lighting.
Parents want to choose the best in the available budget to facilitate the health, development and overall well-being of their children. Not only this, it is also necessary for the safety and welfare of the elders in the family. Before finalizing the contract, the decision makers take the opinion of each member of the family.
- Family – Going From Joint To Nuclear
Changing family profiles from joint to nuclear families has changed the preference for buying housing projects. In the traditional Indian joint family system, many people lived in the same house with their individual families.
This radical change of nuclear facilities has become an ideal without exception. We can classify a separated family as couples and their children who need less space than a joint family. The needs and desires of a joint family are completely different from those of an atomic family. Therefore, nuclear family property purchase decisions are different from joint family decisions, in terms of decision makers and choices.
What Family Look For, While Searching For A Property
- Apartments or individual house
The smaller the family, the less the need for the size of the apartment. Outdoor property can incur high maintenance and additional costs. Contemporary Indian nuclear families prefer compact and yet space-efficient homes. So apartments and flats for sale are a natural choice.
- The Location- Proximity To Workplace, Schools, Healthcare And Shopping :
Due to shortage of manpower, families prefer to buy houses near social infrastructure. To reduce the extra time and effort, the family will choose a place of work, school, hospital and even a house close to shopping. Proximity to their children’s schools is also important for safety and convenience reasons.
- Possibility To Upgrade:
When buying a property, each family looks at the possibilities and considers the possibility of upgrading to a larger home in a better location in the future. As they improve financially, they will want to move on to a better quality of life. In this way, families can move away from properties or locations that do not have enough space to facilitate such upgrades in the resale market.
- Good Neighbourhood For Children:
The well-being of children is a major concern of every parent. Therefore, when buying a property, it is best to check the availability of parks and playgrounds in the home complex. A great and happy environment can raise your children fast.
Now you decided to buy New House? Keep These Five Tips in Mind before Buying a House
Usually the decision to buy a house is the biggest financial decision of our life. It requires a lot of planning and research, due diligence, and a much focused approach.
While buying a house, a wrong decision not only leads to financial trouble but in the current situation, it can also lead to harmful financial consequences. Along with this, it is also true that home loan interest rates are still at a record low level. At this time the price of houses has also come down. With this the realty market has become very attractive. Before you decide to buy a house, keeping these things in mind will make your path easier.
Must have a stable and continuous source of income
When you plan to buy a Property, it is important that you have a steady, steady and adequate source of income. There are many people who are facing difficulties in paying their EMIs due to the loss of their jobs or salary cuts due to COVID-19. While there is a temporary relief due to the moratorium on EMI, the overall loan load (amount) or repayment tenure is likely to increase.
If you are planning to buy a Property now, you must make sure that you have enough funds to pay off your entire loan on time. To avoid any trouble later, the best way would be to make arrangements for earning income from more than one source.
Maintain Contingent Fund
You will never be in a position of financial risk, that is not possible. Especially when the economy as a whole is still going through difficult times. To mitigate financial risks, you should have a sufficient contingency fund. This emergency capital should be sufficient to meet your essential financial needs, including your regular expenses and your EMIs, for at least eight to ten months keeping in view the COVID-19 crisis.
Ready to move property
Like other sectors, the Indian realty market is facing a lot of challenges due to Kovid-19. So, you may not want to buy the property right now as you may not like to wait for a long time to get the position. Though the Real Estate (Regulation and Development) Act, 2016 has been enacted, but under the unprecedented financial situation during COVID-19, you may have to be prepared to face a worse situation.
In order to minimize the risk, the best option would be to consider a ready-to-move home as compared to a property under construction. Having said that, you need to take into account other factors like the premium of the ready-to-move property, the affordability of your home loan EME, and whether there are any discounts available in the current market.
Check credit score
Most of the banks have linked their home loan with the credit score of the borrower. A higher credit score (typically 750-800) usually results in a lower interest rate loan if you meet other conditions as well. . It must be noted here that, due to high or low credit score, interest rate can vary by about 1% per annum.
Even a small increase in the interest rate can make a big difference in your overall loan repayment in the long run. So, if you are planning to buy a house, you should check your credit score and decide if it is maintained at a higher level in order to get a home loan at the lowest possible rate.
Now or later
Should you buy a Property now or later? This decision should be taken by the end-users keeping in mind the long-term perspective. In the current market, you can get good deals with discounts and properties available at your preferred location. There are also several tax benefits that you can avail if you buy your first home in the current market.
So, if you are financially sound i.e. have a stable and consistent income and have enough margin money that your contingency savings and other important financial liabilities are not affected, then it is possible that you can make a good profit in the current market. Don’t want to miss out on the property deal. But, while protecting yourself from losses and not borrowing more than you can afford, do a thorough search for a property that fits your needs.