Akshaya Tritiya buying new home

Courtesy: Housing.com

Akshaya Tritiya is an occasion that draws people to invest in the most profitable asset classes. With real estate providing high returns over the long-term period, Akshaya Tritiya is considered as the most auspicious time to buy a home, which can also be treated as an investment asset.

The ‘ABC’ of buying a home

  • A – Affordability: The home buyers should look for properties, based on what they can afford and not on the basis of offers and discount.
  • B – Basic steps: Festivals are cyclical events and if one is unable to finalise a deal this time, then, there is always a chance to buy a home the next time. Home buyers must concentrate on the basic steps and not opt for a house solely on the basis of sentiments.
  • C – Cost-to-benefit analysis: Sometimes, property sellers make misrepresentations, by showing discounts and offers on one hand and charging extra money by other means. Home buyers must analyse the actual festive benefits, by comparing the festive price with the property rates that were prevalent prior to the festival, and then make a final decision.

“The popular belief behind Akshaya Tritiya is that anything initiated on this day, will continue to grow and prosper. The day is considered as favourable, especially for starting new ventures or purchasing new properties,” explains Gaurav Shah, director of the Ravi Group. First-time buyers are more sentimentally attached to their properties, as it is a one-time decision for of them, compared to others. Hence, they are more particular about purchasing the accommodation during festive periods, he points out.

Rohan Agarwal, managing director of the Geopreneur Group, explains the importance of the ‘ABC’ of home buying, vis-à-vis the festive season:

Affordability

“As discounts and other schemes are likely to be offered on Akshaya Tritiya, buyers can leverage these and save money, thereby, making the property more affordable,” says Agarwal.

Basic steps

“In addition to the discounts offered by the builder, the buyer should also check for the project’s approvals, title of the property, background of the developer, his past projects and their delivery timelines, quality of construction and amenities, and compare these with other properties and their corresponding rates in the vicinity. Buyers should also evaluate the locality and its accessibility,” he adds.

Cost-to-benefit analysis

With the correction in prices and the RBI’s rate cuts, which have made home loans more affordable, buyers definitely have something to look forward to, during Akshaya Tritiya, feels Agarwal. “Moreover, with the real estate regulatory authority being introduced, there will be more restrictions on the industry. This will lead to a drop in the supply, by 40%-50% and it can trigger a price hike later in the year,” he reasons.

Irrespective of when the purchase is intended to be made, experts insist that home buyers should always check all the legal aspects of the property and whether they have been complied with. Buyers should also analyse the offers proposed by different agents, to understand what is best for them and how they could cut down on their costs.

Source: https://housing.com/news/abc-buying-home-akshay-tritiya/