Maybe, many of my readers will not like this blog post but this blog will definitely give them something to think about.
This is an important post because many people start looking for a property too early. I have earlier written on the phenomenon of analysis paralysis in real estate.
The people who start looking for a property too early suffer from indecision and confusion.
They often end up losing the good inventory and see the prices appreciate in front of their eyes.
One of the main reason people lose out on a property is because they are not ready to buy.
When is the right time to start looking for a property?
The best time to start looking for a property is when you have the down payment plus extra costs that accompany an apartment purchase ready.
Minimum down payment required is 20% of the basic sales price. Rest can be arranged via a bank loan if your eligibility suits.
When you have the down payment and the additional costs ready you will be ready to start your journey of finding a house.
I think a time period of 3 months is more than enough for finding an apartment in Mohali or Zirakpur.
Why is down payment important ?
Down payment and extra costs are important if you are looking for a ready to move property.
The reason is that ready to move property sells fast and assuming you have done your research and like a product you can finalise in a short time if you have the down payment ready.
If you like a property but don’t have the money ready then there is a high chance you won’t get the inventory of your choice again.
Also, while not mandatory you will need to Keep a budget aside for these 7 Items for your new apartment
What is your maximum loan eligibility ?
Another thing you need to be sure about before starting your search for a house is your maximum loan eligility.
It is a very simple process wherein you will have to meet your bank once and get your eligibility.
At the same time you also need to consider the amount you can comfortably pay in the form of EMI’s.
Let me give an example:
For a bank loan of 25 lacs for a tenure of 20 years @6.70% your monthly EMI will be 18,935 rupees per month.
You can also check out the HDFC home loan EMI calculator to get a better idea.
If you can afford the EMI take the highest amount of loan. Don’t worry you can pay it back any time.
Ready to Move or Under Construction ?
I think the time taken to finalise a property should not depend on your preference for a ready to move or an under construction property.
Due to the various factors this is the right time to invest in Zirakpur and Mohali
If you buy an under construction property you can get a pretty flexible payment plan on the property.
I have seen multiple instances where in people with very less bank balance have been able to get a property on very flexible plans.
Especially in the pre launch phase.
If you are looking for a ready to move property then you are well advised to close the deal before the good inventory runs out.