Benefits of Applying for Home Loan in Current time

HOUSING | Know More 15 November 2021

Golden Age for home buyers:

Over the last ten years, the market for home loans has been increasingly generous to the budding home buyers of India’s rising economy, with low interest and increasing housing loan benefits. Supply in the private housing market has been high along with 1 crore new houses being built under PM Awas Yojna (to provide low cost affordable housing for the urban poor with subsidised credit). The situation has nudged housing companies to give immense home loan benefits along with interest rates that have hit record low in the last ten years, sometimes as low as 9%.

Benefits of Applying for Home Loan in Current time

Mood of India’s rising youth

India’s middle class professional youth no longer wants to be limited and meek when it comes to their choice of homes. They want their residence to reflect their growing social status and confidence and the time has never been more right for them to lock into a grand investment.

Unfortunately, many new home-buyers feel afraid when buying a home, primarily due to the risk of unforeseen expenditure. In this situation, home loans become the key to transform such a high-value financial strategy into a smooth and logically structured process. Once the structure of the investment becomes clear, fear automatically reduces.

Problems of buying a house without home loan

In simple terms, there are two ways to own an expensive house without taking a home loan:

  1. Set aside a portion of your income (and perhaps invest it in deposits, shares, securities etc.) for several years until you gather enough money to buy the house of your choice.
    Downside: No guarantee that at the time of buying, a house will be available, that too at an affordable price. Besides, it's better to start enjoying the comforts of your own home now and not five years later.
  2. Take out a large lump-sum amount if your current savings are enough.
    Downside: You lose a lot of cash, thus exposing your family to unforeseen expenditure, especially medical emergencies.

Advantages of home loan:

In case of home loans, you can avail the comforts of your own house today at a favorable price, without having to part with a large chunk of cash in one go - any unforeseen expenditure thus becomes easier to absorb. Organizations like Piramal Capital and Housing Finance also allow you to restructure your EMIs as per any change in your investment plans eg: you may increase the payback period and decrease the EMI when needed.

Living in a secure home with better amenities increases your productivity - your income, lifestyle and financial security thus actually improves. Therefore, it is much better to take a home loan and get the house of your dreams today than to wait indefinitely or risk it all for the same.

Time to strike is now!

The golden age for home buyers may not last forever. According to a recent S&P Global Market Intelligence Report, COVID-19 has made people realize the importance of owning a secure home - the demand for homes has thus been picking up. As per the same report, the collective inventory of houses have fallen from the record high of 700,000 in 2014 to less than 4.5 lakh in 2021. It is therefore expected that prices might start steadily increasing soon.

Favorable locations can have multiple advantages such as lower pollution, lower transport costs, less walking to and from markets, living closer to friends and family and even lower pollution. So if you are looking for a home to call your own at an enviable price, better start looking for the required finances now!

[Also Read: How to Apply for Home Loan Online?]

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