8 Reasons why buying a house is better than staying in a rented one

NL-Complex-NL BuildersThere has been an endless debate on the topic as to which option is better; renting a house or buying one. No matter which one you opt for, you have to pay the price for the same. Still, buying a house is believed to be better in many cases. Here are some of the reasons which justify this statement:

Investment versus expenditure

When you rent a house, the money goes straight to the owner and you are just paying for your monthly stay in his/her house. Contrary to that, when you buy your own house, the money you spend every month paying mortgage, taxes and other expenses required, you are actually indulged in a long term investment which ultimately results in making you the owner of a valuable asset.

Evident progress every month

Paying your mortgage every month increases the percentage of equity you own. Moreover, you can also apply for a loan against this equity if ever any emergency arises.

Increment in net worth

Having your own house not only ensures that at least you will not be homeless, it also increases your net worth which is ultimately better than working towards a higher income since it provides more financial independence.

Your house, your rules

Buying a house for the first time is a very emotional step. There is no doubt that the level of comfort and freedom your home gives you, can never be achieved in a rented house. You can install a modular kitchen of your choice and pretty much do anything thing to make your house a better place to live in. These things also increase the value of your house. None of these options are available in a rented house.

Focus on the bigger picture

Today it might seem that renting is cheaper than paying a mortgage. But ten years down the line, your rent might increase up to one and a half times than what it is right now. However, if you buy a house with a fixed rate mortgage, your monthly payment remains the same throughout the tenure of the loan.

Tax Benefits

It is true that owning a house means having to pay property tax. But it also has some benefits in taxes when seen from a different vantage point. Erik Brynjolfsson, director of the MIT Initiative on the Digital Economy, explains that when you live in your own house, you need not pay taxes on the house rent because it is paid to yourself.

Look into the Future

Suppose you are in your thirties right now and you decide to buy a house. And it roughly would take two decades for you to completely own that house. So when you are in your fifties and probably planning to retire, you have a home not only for yourself but also for the future generations to come.

You become a responsible citizen

When you own a house, you tend to create a better environment around it since you are here to stay for a very long period of time. This makes you aware of what is happening in your locality so that you can make your contributions to make it better. This rarely happens when a person lives in a rented house.

Purchasing a residential property is a huge commitment and includes a lot of hidden expenses. This means having to deal with a lot of things you might not have experienced before. Hence, your decisions must be made considering your savings.

 

 

6 Things You Need to be Careful about before Buying a Re-sale Flat

The rate of real estates is shooting the stars with every passing day. Buying brand new flats or plots seems like only a distant dream to many of us. While some still prefer buying new flats, some of us choose resale flats.

Resale flats are the flats that are sold twice. Relatively the rate of these flats is cheaper since they are not brand new. However, one must be a little more careful while choosing a resale flat. Here is what you should consider before buying a resale flat.

  1. Age of Property

Considering the age of the property is significant. There are times when the flat do look old but aren’t and sometimes it is vice versa as well. Knowing the age of the property helps you estimating its strength. You should not get fooled regarding the age of the property. Please make sure that you go through the property documents.

  1. Cost of Amenities

The cost of amenities is best to be cross-checked with the dealer or the owner. Sometimes items like furniture or fixtures are added to the cost as the cost of amenities. One must keep a check on the amenities that are given alongside the corresponding cost.

  1. Area and Locality

Just because you are getting a cheaper deal does not mean you should accept it blindly. Keep a check on the area and locality where the flat is situated. It is best to visit the flat beforehand and examine the area surrounding to it. An area of dispute or unhealthy atmosphere of the locality should be avoided.

  1. Ask them Why?

You need to know why the person is interested in selling the flat. Is it that he or she has found a flat in another location? Or is it that they are moving out of the city? Whatever be the reason you need to know it. Not every time you would get a genuine answer but you can always talk to other people and gauge it.

  1. Verify the Builder

The verification of the builder is also an important aspect to consider while buying a resale flat. An extensive verification of the builder with the help of your legal advisor is an advice worth a million dollar.

  1. Total Cost

Calculate the total cost involved and compare it with the cost of newly built flats. On most of the occasions, the total cost exceeds the cost of newly built flats hence be cautious. Ensure that there are no extra charges unnecessarily charged upon your costing. In case the resale flat cost is exceeding the cost of a brand new flat, we advise you to rethink.

Buying resale flats are advantageous especially in terms of its costing however, there are frauds lurking around everywhere. Being cautious and thinking rationally would safeguard you against scams more than anything else. Apart from the mentioned points make sure that the flat is not kept as a mortgage with any financial institution.

We wish you a very Happy Home Finding.

How Demonetization did Affect The Real Estate Industry?

Demonetization Affect Real EstateA major move of Demonetization was witnessed by the entire world on the evening of 8th November 2016. The entire nation faced a huge hoopla as the announcement was sudden and startling. Who anticipated that the government might take such steps to curb the black money out of the system? A number of sectors naturally got affected with this move of the government. Online transaction and card payment methods went on a rise; online gateways and wallets were also a hit.

Subsequently, even real estate underwent some changes owing to the effect of demonetization. Traditionally, real estate has witnessed the huge involvement of black money and cash transactions. It is predicted that the luxury houses would face corrections in the pricing in short to medium term. Since luxury homes do involve the majority of the transaction in cash. On the contrary, the primary homes wouldn’t see as much effect on pricing. The parties involved in buying affordable homes are more concerned with home loans. The home loans taken are carried through legal route hence this particular arena wouldn’t face corrections in the prices. Further, it is expected that those buyers who opt for home loans would have a reason to rejoice since the rates of EMIs might soon drop down and become more flexible.

Additionally, according to the well researchable NL Builders the another segment that would have an impact on pricing is that of piling up inventories for the developers and real estate sellers. Due to the reduction in cash component, it is predicted that there would a lethargic demand in real estate for short term at least. Owing to the reduction in cash component, the real estate developers might be led to cut down their prices in order to generate required liquidity.

Another significant impact that demonetization would lead to cheaper borrowing rates. Due to the increase in the fund flows in the bank, the rates at which the sum is lent is slashed down. This would encourage the buyers to buy affordable homes at friendly EMIs.

Furthermore, when it comes to office/industrial leasing there is minimal impact on it. Since the cash component was never a significant aspect of the transactions in this segment, there is hardly any occurrence of the pricing correction.

There is a vital delay in the execution of the ongoing projects. Given the cash crunch that demonetization has bought it there is a trouble delay for sure. There is also a forecasted interest of developer into tier 2 cities. This witnessed the deluge of end users in buying. Being in the industry as an establish real estate marketer and builders the NL builders do believe that demonetization would curb the black money but at the same time it would affect the demand.

NL Builders who are well established in the industry also presume that land segment and resale properties would face a major impact since cash component is popular in these transactions. For the end users buying a home is relatively cheaper than ever and this can be easily termed as the golden builder from customer’s end. The negotiation power gives an upper hand to the buyer. Though reputed builder such as NLPL Group, have not been affected by this move as they were already selling only full white.

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