Planning to Purchase a Home for End Use or as an Investment?
There has never been a better time to buy a property, because of the low interest rates and the low prices in the realty markets. However, whether you are purchasing a home for your end use, for investment or for renting out purpose, there are a number of things you must keep in mind while searching for your next real estate purchase.
The goals for each are different, but the primary difference is that buying property for end use needs to meet the individual needs of you and your family; while on the other hand, purchasing a home for investment is done solely for maximising profits.
Basic criteria for both types of property are:
Your budget and credit score - you can get pre-approved loans for purchasing a property, basis the same. Check the eligibility criteria on ICICI Bank’s website right now
The area/location determines the price and can affect your budgets, so a cost benefit analysis would help you make a sound choice
Property taxes and amount of your income that will be going towards its charges
Future development and how does the locality & amenities change the liveability and price of your home
The RERA registration and title deeds of the property you are considering for purchase.
Choosing a property for end use.
Tips for buying a property for end use:
Buy a property that is spacious enough for your family’s needs
Pick a property that is close to your workplace, education and has good amenities for a family’s needs, including hospitals etc.
Splitting the Home Loan liability between two or more household members, will help you save overall taxes under Sec. 80C and may be a better choice to consider, when choosing a property for end use.
Choosing a property to invest.
When buying a house for investment purposes, don’t just be lured by the low interest rate. Be aware of the area that you are buying the property in, and make sure you gauge the accurate renting structure and the potential for appreciation, to meet your long-term financial goals.
Tips for buying a property to invest in:
Buy a property with reputed builders in a developing area, to maximise your chances of a high rent i.e. your eventual return on investment
It is advisable to buy a property near completion, so you can start reaping your return on investments by renting it out
No matter what your cause for buying a property, you can discover easy financing options and Home Loans on myriad pre-approved properties, on ICICI Bank’s Home Loans website.
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