Before answering; ‘is buying a home a good idea?' Let's just make one thing clear that it is not a yes or no question. It depends on various factors, such as the following:
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The price you will pay for the home.
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The rent you will get if you rent your property.
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Additional expenses are accountable: Interior decoration, taxes, maintenance, brokerage, etc.
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Price: if you decide to sell it.
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Down payment/initial payment or full payment of the home.
So, if you have already designated an answer for each factor, then you are good to go. If not, then let us tell you why buying a home is an ideal choice. There are many advantages to owning a home, such as:
1) Real estate prices appreciate significantly year on year for people to make money.
2) Home is a physical real asset, and most people prefer solid investments.
3) Live, sell or rent: whatever way you choose there is enough value creation.
4) Everyone benefits every time you buy and sell a home - you, the real estate agent, the attorney or the bank as well in some cases.
5) Prestige and honour grow stupendously: Buying a home is a matter of pride for most people.
6) Lastly, buying a home as an investment option has low risks and high returns in comparison to most other investment options.
But a decision doesn't enrol on sheer benefits, a complete picture has to come in front of the eyes. It's a question you can wrestle with to no end. Helping to frame the debate and lend advice below are 5 points from real estate and finance experts.
The problem with real estate is that the real money is made over long periods, and most of the people are not that patient.
1) “The first chance you have to own a roof over your head, you should do so,” says Sameer Desai, senior consultant at Kohinoor group. So, having a home, with an EMI payment you can afford, will allow you to focus on what's essential to your mental health and financial well-being, he says. He also suggests that putting away some money from each paycheck will force savings and help you to compound your money and grow wealth over time, independent of how the economy or stock market are faring.
2) If you're looking to accelerate your savings quicker (and are okay with some risk), individual stocks may be the way to go. But if you are looking for long-term investment (meaning you don't necessarily need the immediate liquidity), then home buying would be the best suitable option. You can expect your home or property to appreciate in value slowly, says Nishant Bahadur, Sr. property consultant at OYO.
3) If you don't want to take risks or have limited money to invest, then stock market investment can turn into a bad idea. Stocks are more volatile than real estate, so a profit can be turned more quickly in stocks, but because they are unstable, they may become riskier for more substantial investments.
There are a bunch of solid reasons to purchase a home. But buying a home isn't necessarily suitable for those who are looking for flexibility in their lives and careers to move cities, change jobs, or grow their families.
Investing in real estate depends on personal preference. However, a look at the benefits mentioned above does make a strong argument for buying a home. Either way, it's not always a decision you want to make on your own. Get in touch with our property & investment experts for a free consultation.
