Ask a financial advisor when’s the good time to buy a house? Chances are they would answer the question with a question, “Is it the first house you are talking about or the second?"
For most planners the logic goes like this, if it’s your first house you want to buy that too for personal consumption, any time is good. But if it’s for sake of investment, getting the timing right matters. In fact, today’s Business Standard notes, that when it comes to house hunting, doing so in the rainy season might just land a good deal.
This is because demand is less in the rainy season and developers will be willing to offer better deals. Take, for instance, the inventory levels in metros such as Mumbai, Bangalore and Delhi.
“Inventory levels are so high that cities such as Mumbai, Bangalore and Delhi have unsold stock that can last for 34, 23 and 20 months, respectively," the report quotes Ashutosh Limaye, head (research) at Jones Lang La'Salle India, as saying.
This means there is added pressure to ensure sales are happening due to which many builders actually come up with special monsoon offers, with more benefits than the regular ones. The offers could be of various types, right form 80-20 schemes, to zero booking amount deals to even pre-EMI schemes. So even offer amenities like modular kitchens, ACs and the like.
Of course, hunting for a house in the rainy season isn’t going to be easy. Would you rather not sip some hot coffee and read a book instead. But pounding wet pavements do come with its own set of advantages. For instance, you could check for yourself the quality of construction, like cracks, water seepage etc. In fact, even the kind of water logging that happens in the area where the building is located.
And as far a funding your house goes, remember this too is a dull period from a bank's point of view. It is usually after monsoon that banks see higher home loan disbursements. Which, in other words, means that monsoon is a good time to negotiate and bargain for better rate for home loans as well.
You can read the full Business Standard story here.