The topic has been in the discussion since long. When is the ideal time to buy an apartment? Or when is the ideal time to stay in rented place? The question seems childish to many. But as per real estate experts, it has many layers to it. Rather than thinking and arguing about the rationality of owning a house, we can discuss in detail about the pros and cons associated with flats for rent and buy in Dwarka
When Is The Ideal Time?
This is really tricky. Let's understand this situation. If you are in Dwarka for a shorter period of time and want to buy a property there, let's say, a year or so, the best option for you is to rent a house rather than investing heavily in a house. Real estate transaction has some costs that cannot be recovered anytime. This includes stamp duty, registration, brokerage charges among others.
Another factor is that banks, normally, won't give more than 80 percent of property's cost as home loan. The remaining 20 percent has to be found out by the buyer alone. If you are looking at the current cost of residential houses, it is better you stay in a rented house until you save enough money for it.
Family size also matters. If the family gets bigger in due course, it is better to plan things accordingly and then contact property dealers in Dwarka. Besides, if you are not sure of the locality to stay, you can also opt for taking a house on lease, in a locality of your choice.
When Should You Buy A House?
A house of your own is always a good idea and there are luckily plenty flats for sale in Dwarka; but it have to satisfy several criteria. If you are able to arrange the margin amount (advance amount) you can go ahead with the buying option. You should also keep in mind that you have a big loan amount to be paid. But even if you have enough funds, you should think about the locality you are going to stay and how long it will be for.
Another thing is that never make the decision on buying a house on the basis of cost benefit analysis and rental versus the cost of funding the house. This doesn't make sense as the rentals vary from 2 to 4 percent of the capital value of the house, where the cost of borrowing is 10 percent for home loan. This leaves a gap of more than 8 percent and owning a house has its own tangible and intangible benefits also.
So never ever postpone the idea of buying a house for silly and irrelevant reasons. Take decisions wisely always. Always keep in mind that the property and residential area price escalates every year on an average of 9 percent. While doing the cost-benefit analysis, you should keep in mind about this property price as well. The best thing will be do it when you are ready rather than you think you are ready. Once you understand the difference, you will have a dream home and everything just falls in place.
