Buying a Home in 2015

Buying your first home can be exciting as well as challenging. With proper due diligence and extensive market research, the whole experience of buying a first home can be simplified.

Here are the top five reasons to buy a home in 2015.

  • Falling Interest Rates in 2015: The Reserve Bank of India has already cut the policy rate by a total of 125 basis points in 2015, following rate reductions in January, February, June and September, on the back of low inflation in 2015. Lower interest rates translate into lower interest rates on housing loans, which can be a boon for the first time home buyer seeking a home loan.
  • The Real Estate (Regulation and Development) Bill, 2015 is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects. The Bill provides for a uniform regulatory environment, help speedy adjudication of disputes and ensure orderly growth of the real estate sector. The above proposed amendments should maker buying a home easier than before.
  • Moderation and Stability in real estate prices: As opposed to sky rocketing prices in the past, real estate prices have actually cooled down in the past two years and have reached fair valuations. This is the best time to invest in real estate, before prices start increasing again.
  • Lesser ROI’s from other sectors: The return on Investment in gold is negative for this year, the volatility in stock markets is a big deterrent, and fixed deposit rates have decreased considerably due to falling interest rates, leaving real estate investment as one of the best options.
  • Tax savings from home loans: With rising disposable incomes this year due to growth in the Indian economy, one the best way to save tax is to avail of a home loan. The principal amount paid qualifies for deduction under Section 80 C. Interest payment upto Rs. 2 lakhs can be claimed as deduction.

So, are you still confused about buying a home this year? Now that you have gained some knowledge about the fact that investing in real estate sector is actually a good thing to do this year, why not take the plunge?

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