This is arguably the most important question that every property buyer ponders over. Every year analysts give you lengthy reports about the right time to buy a property, but the fact is that one can only invest into a property when they can afford it.
Investors watch the market and run through property listings hoping to chance upon the best deal. But the wait and watch game can go either way. You might hit a bargain if the market slumps or miss a big bet if the market rises and the property becomes too expensive for you. Having said that prospective buyers also need to keep their eye on a few other things.
Market Condition: In the specific area that you wish to purchase property check the market conditions. The social infrastructure, distance from key locations and appreciation possibility in the location will determine the price at which you purchase the property. If there are plenty of builders in the area, then you are likely to have better bargaining powers on the price.
Location: A new development location will have cheaper rates and city centre locations will have higher prices. New locations will have poor development from the local municipality so its important to understand the purpose for which you are purchasing the property.
Purpose of Purchase: If it’s for own use, then you might have to consider monthly costs but if it’s for rental then social infrastructure plays a key role. If the property is close to the business district, then as an investment it is likely to mature faster and you are also likely to get good rental returns. If it is in a new developing area, then rentals and property value appreciation will be at a slower pace.
Post-purchase Costs: Commercial or Housing, all property needs maintenance on a regular basis. It is important to factor in the taxes, statutory payments and miscellaneous repair costs that might affect your finances. Ensure you gather all information about maintenance of the property before finalising your purchase.
Realistic Expectation: It is important to be realistic about your finances before you go in for a purchase. The property market can be booming or dull but if you cannot afford the property then it doesn’t make a difference. Yes, you are likely to clinch a better deal when you buy a property in a dull market but that might not guarantee a good quality project.
Property purchase is an expensive business. A stagnant market is a great time to look at property purchase, but it cannot be a sure shot strategy because there is also a likely hood that the market might crash at a later period. There is really no right time to buy a property as the market is dynamic and the changes cannot be predicted with any amount of accuracy. So the best time to purchase remains as the time you have the money to buy it.