Buying a house is a big decision. It is most probably the biggest expense that one undertakes in their life, which is why it is essential to first have a plan ready to deal with the expenses. What most homebuyers do is apply for home loan plans in order to arrange for the required funds. Most financial institutions offer a period of up to 20 years in which borrowers can repay their home loans in monthly instalments.
Given the recent pandemic, it is natural to wonder whether buying a house in 2022 and taking on the financial responsibility of clearing the loan is a good decision. Let’s take a look at how buying a house this year can prove to be beneficial:
- Lenders are currently offering competitive interest rates
Much to the delight of homebuyers, housing loan interest rates have come down in recent years. This has prompted many borrowers who have already taken home loans to opt for home loan balance transfers to enjoy the benefits of a lower home loan interest rate. Therefore, if you are planning to take a loan this year, it is probably wise to do so and take advantage of the competitive interest rates offered by lenders.
- It is best to apply for a home loan as soon as possible
No one would like to keep paying the monthly instalments of their home loan well into retirement. Without an active income, paying off home loan EMIs could lead to financial difficulties. This is why it is best to clear off the loan while you are still working, which is possible if the home loan is applied for sooner. For instance, someone in their late 20s or early 30s could take a home loan and be debt-free by the time they reach their early 50s.
- Capital appreciation can prove to be profitable in the long run
One of the biggest benefits of investing in property is capital appreciation. Property prices are always going up and investing in one is very likely to be a profitable decision. Do note that even if you are planning to rent the place out, even rental charges go up with inflation. This is why buying property is considered to be one of the safest modes of investment.
All said and done, the decision comes down to the individual in question. After looking at all the benefits, you can take the decision of buying a house. However, if you are worried about your job stability or would like to draw a higher monthly income before taking this step, there’s no harm in first focusing on these goals before deciding to purchase a property. If you have made up your mind about the home loan, make sure to speak with the lender and inquire about the documents required for home loan. This is to ensure that the documentation process goes smoothly.