Home purchase: NOW is the time to hunt!
IF you have been among those who have been waiting for the 'right' time to buy a home, NOW maybe that time. Interest rates have been falling, making your loan cheaper. Not just that, property rates have visibly started falling too. Wealth takes stock of whether it is indeed the right time to buy a home!
Property prices are falling
So have prices bottomed out? Sandeep Runwal, Director of Runwal Group, a Mumbai-based real estate company says, "In early 2008, property prices were unrealistically high but now rates have come down. We have reduced rates by 35 per cent. Bottoming of prices will happen quite quickly in the next two or three months."
Home loan are also getting cheaper
Many lenders such as State Bank of India (SBI), HDFC Ltd., LIC Housing Finance, etc. have reduced their loan interest rates. Bank of India is also expected to reduce its interest rates by 50 basis points. Then, have interest rates bottomed out?
Chairman and Managing Director of Punjab National Bank, KC Chakrabarty says, "Lending rates will come down by a maximum of 50 basis points."
Principal Economist, CRISIL, DK Joshi explains, "A further rate cut (by Reserve Bank of India) is expected in the next two to three months. There will be more action once the Central Bank announces the annual monetary policy by the end of April 2009."
Verdict: Should you wait or buy
Runwal also suggests that you will be able to acquire properties at more realistic prices in this current market scenario.