3 Types Of Stats To Watch Out For While Buying A Home

Home buying is an art and also a math. It involves a lot of calculation of finances, addition of expenses, minus the monthly payout of rental value. However, there are few other stats that are compulsory to look into before buying a house.

Check out the list of stats that can impact your home buying decision-

Finance rate

Investment in India looks favourable post demonetisation. When it comes to the financial situation of banks, the government is striving to make the best use of liquidity in the market by bringing down the interest rates for home loans.  This stat remains most imperative to assess how your home buying is going to be. Currently, the effective rates range between 6.5-8 per cent, offered by several nationalised as well as big private banks. Lower the interest rate, lesser will be the monthly instalments or alternatively, you can opt for shorter loan tenure. All this can govern your future investments as while you are busy paying the instalments, you can also save extra money to invest in other channels.

Rental stats

No matter if you are an investor or an end-user, it is always wise to assess the rental value your home can fetch. This would help you to evaluate whether the monthly instalment you are paying justifies the cost of the home or you are overspending on your home. Another instance, where it can be useful is for the time when you are upgrading to a bigger home and want to keep the existing investment for rental income. You will be in a better position to evaluate the range of EMIs you will be able to pay for a newer, bigger home. The rental yield is the best way to judge whether the property can offer you returns better than any avenue.

Capital price stats

Capital price growth is another prudent stat that a buyer needs to assess before entering the property market. The price at which you are buying a certain property and the expected price growth will help you to assess how the property market is going to perform in the next five years and where will you stand if you have to exit the market in a few years. This stat is important for understanding the market performance and the level of risk you should take when it comes to your lifelong savings and a hefty cheque you would be signing for monthly instalments.

While property buying is one of the toughest jobs to do, assessing the risk associated with it is even tougher. For more tips on home buying and selling, keep checking this space.