2nd of the series
Track2Realty Exclusive
The dilemma of whether the right time to buy is always there for those who are looking for their first home to move into. Even when the market was worst hit with the recessionary impact there were good deals in market for those looking to invest in property.
If the fundamentals are strong like clear titles, area where growth is expected etc and the price correction has already happened, then one may opt for buying. And before buying a home of course one must check the fundamentals like price rationality, down payment and EMI options that suit your budget, the legals are in order etc.
Realty companies assert that the prices have reached the rock bottom in the last few years and rising input cost makes it all the more difficult to offer more price cut. Says DLF Spokesperson Sanjey Roy, “In a demand-supply mismatch where you have more buyers seeking home than the market can supply, the market has to go up unless there is a case of more land being released, and I don’t see such a situation in the immediate future. The fact of the matter is that even in the recession hit market in the FY 2008-09, DLF managed to sell more than 8,000 flats. That is the best yardstick to judge whether it is the right time to buy property.”
All realty experts agree that the days of speculation are over, at least for the next few years. And thus it is a good time to buy a home only if it is for self-use. Actually the property price is determined by the fundamental indicator of demand and supply added with civic amenities and growth potential of the geographical region.
The demand in the market had skyrocketed when the economy was doing well, new jobs were being created and salaries were going up. The emergence of the suburban housing market gave people an opportunity to buy cheap and mortgage loans were available at lower prices. The economic downturn, however, taught a tough lesson to those who had over stretched themselves with the EMIs. Now even when economic growth is consolidating, consumer behavior borne out of crisis of confidence will be moderate for the next few years.
