Home loan EMI calculator? First get answer to this critical question - is it the right time to buy a house? Your house-owning dream rests on this

Much before you rush to check a home loan EMI calculator, there is something else you should know and some other calculations you must do first. Here are a few questions? Is this the right time to buy a house? The obvious answer is, when you can pay for it or shoulder the burden of taking a home loan. That means having a bank account that is big enough or a job that pays well and is also secure. Can you do that? And what is that amount you can pay for? How big is the house you should buy? You must answer these questions too and then check out that home loan EMI calculator. 

Yes, everyone wants to own a house - as big as reasonably possible. However, a lot has changed post Covid - in terms of bank account, job security. Also, are home loan interest rates and the price of property down or high? 

So, it all comes down to whether this is the right time to buy your dream house or not. 

You are the best judge as far as your money is concerned, but as far as experts go, they are of the view that people should buy their house now as many home developers are collaborating with the government to boost their sales and offering huge benefits that should lower the burden of the homebuyer. 

The central government and state governments have also come forward to help people buy their home and revive real estate sectors. Many states are giving concession to home buyers and almost all builders are offering a discount of 3% to 7% presently, they say.    

Developers say discount to customers and stamp duty cut will also help home buyers to pay for their house.

“Covid has made people realise that home is the most important thing in a person's life,” says Kotak Mahindra Managing Director (MD) Uday Kotak. Currently, low rate of interest, concession in stamp duty and developers discount are also supporting prices of home, he said. 

CEO of biggest housing finance company, HDFC, KK Mistry feels that it is very much likely that interest rate will not dip further in future in comparison to present rates.  So that should add urgency to homebuyers decision about whether to buy now or not.

While Central government is offering incentives to first time home buyers through CLSS scheme, state governments are also giving discount to help real estate sector streamline its business.  Maharashtra recently registered 36% jump in house sale in October after the state government announced 3% discount on property registration till December.   

According to Real Estate Consultants Firm, Liases Foras, real estate sales across the country has seen a whopping jump of 60 % and it may break all-time record in December quarter. It is because currently real estate is a buyers' market and customers are getting good deals on it, said Pankaj Kapoor, MD, Liases Foras.
 
There were also good trends seen in resale value of houses. The prices did not decline much in resale segment, but low interest rate and stamp duty cut have increased sale of end user. Brokers say the sale of resale houses has almost doubled in recent times.  

Developers trying to achieve inventory target post Covid and government’s genuine intention to help real estate come out of this slump helping this sector.  

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Having said all that, one thing homebuyers should keep in mind is whether they can support the home loan EMI burden for a decade or so. If they have the down-payment and can pay EMIs without a big problem, they should think in positive terms about powering up their dream home drive.