With the emergence of the new real estate interest rates, there has never been a better time to invest in real estate in Bangalore. The Silicon Valley of India has always been highly sought after when it comes to investing in real estate.
The onset of the new interest rates, the Government subsidies as well the current real estate price trends have made this an ideal time to buy your own dream home.
Here are 6 reasons why the new interest rates make it easier for you to buy a house:
1. Reduced borrowing costs
- The reduction in borrowing costs has resulted in lower interest rates for home buyers.
- This reduction is independent of market trends and has provided a great boost to the real estate sector.
- There are more and more potential buyers to sell the properties to, thanks to the reduced borrowing costs which are a big USP.
- Home buyers can now get home loans at lower interest rates due to the reduced borrowing costs.
2. Subsidy benefits
- Our Government has been providing incentives to the citizens, encouraging them to buy their own houses.
- The Pradhan Mantri Awas Yojana (PMAY) is also a significant step in this direction.
- The Union Budget of 2017-18 also helps first time homeowners realize their dreams.
- The CLSS (Credit Linked Subsidy Scheme) provides subsidies under three schemes.
- Developers can now reach their target buyers, helping them choose the properties within their budget together with the benefit of the Government subsidies.
3. Buy, don’t rent
- As a matter of fact, the EMIs are much lower today than the monthly rentals.
- Why drain your hard-earned money in paying rents for someone else’s property when one could, in fact, become a homeowner by paying a much lesser monthly installment towards the home loan?
- Further, consider the fact that property rents frequently increase with the passage of time while EMIs help you get closer to meeting your home loan amount every time you pay.
- When you stay in a rented property, you only pay for the accommodation and have no scope for appreciation in the prices (the only scope of appreciation is in the rent!) unlike your own home where there’s always a scope of appreciation in the property.
4. Property prices
- Since the last 2-3 years, there hasn’t been any increase in the property prices.
- This makes it a great time for home buyers to invest in real estate. This is especially true of investing in a city like Bangalore where home rent can burn a huge hole in your pockets.
- The low-interest rates combined with the zero price hikes in property prices make it easier for first time homeowners to buy their own homes.
5. Real Estate in Bangalore is ideal
- Bangalore, being the IT hub, offers greater job opportunities than other Indian cities.
- This peaceful city does not have the disadvantages of other metros while offering all benefits of living in a cosmopolitan city.
- The pleasant weather too adds on as a factor in favor of the city when it comes to investing in real estate at the lower interest rates.
6. Tax Benefits
- Apart from the new interest rates and the stagnant property prices, tax benefits also have a major role to play when it comes to investing in real-estate.
- Home buyers can utilize the tax benefits offered under various schemes: Section 80C, Section 24, and Section 80EE.
Putting strings together
The new interest rates combined with the zero-hike in property prices have made it easier for you to own your dream home. Buying a home can be more beneficial than renting one, considering the current scenario of the new interest rates, property prices and Government subsidies.
Even if you don’t mention the numerous tax benefits that you can avail with buying a home, this is indeed the perfect time to make the leap and be the proud owner of your new home. So why wait? Consider the numerous benefits of investing in a new home as highlighted in the article and take your step towards a new home.
