Are you hesitating about buying a home? It’s time to think again. With housing prices consistently outpacing salary growth, waiting too long could cost you more than expected.
However, this doesn’t mean homeownership is out of reach. Here’s a thought: instead of waiting for your perfect home, why not start with a modest home? Trust us, it will appreciate faster than your annual increments and help you buy your dream home much sooner than without it.
Remember, waiting for the “perfect” time to buy a house without owning any property will only end-up being very expensive. Let’s understand what it means:
Only a real estate investment can beat the real estate price appreciation
Appreciation earned on a smaller investment in real estate made now, is the most common and most powerful strategy to cut short the ever increasing gap between your budget and prices of your dream buy. Such investments also appreciate at par with the market rate. This adds-up significantly to your other traditional savings and along with your usual salary increments, soon turns your dream home within your reach.
Whenever you think you’re ready to buy your dream home, you can sell this real estate investment, realizing substantial gains and covering a very large portion of premium paid via price appreciation earned
Let’s break it down for you with two scenarios, Assuming:
Scenario 1: If you decide to buy a modest home today
Vs
Scenario 2 : If you don’t invest in an affordable home today
Imagine your current salary is ₹1.25 lakh per month, and you have savings of ₹20 lakh. You decide to buy a starter home (a budget home) for ₹80 lakh, as a stepping stone toward owning your dream home, which currently costs ₹1.5 crore.
Over time, both properties appreciate at 15% annually, while your salary grows by 10% per year (could be higher, as there’s no upper limit to career growth). The EMI on your starter home remains fixed, and after covering your EMI and expenses, you invest your monthly savings to earn an annual return of 10%. On the other hand if you don’t invest in a starter home, the EMI that you would have paid for the starter-home would have also got added to your savings and it would also fetch 10% compounded.
Fast forward seven years, the gap between the dream home and your purchasing power shrinks substantially over time. By the seventh year, it narrows to just zero. While it still remains 50L + if you don’t invest in a starter home.
This happened because, while your loan-taking capacity remained the same in both scenarios, the appreciation of the starter home ₹1.71 Cr combined with your salary increments led to greater overall savings ₹2.3 Cr compared to the scenario where you relied solely on regular savings without investing in a modest budget home which could only grow to ₹1.69 Cr despite you making very high contribution to your savings.
This demonstrates that purchasing a more affordable home today, paired with consistent investing and career growth, accelerates your ability to afford your dream home.
As you can see, by taking action now, you’re not just buying a home; you’re securing your financial future and peace of mind. And remember, if you ever decide to sell, we at Settlin are always committed to providing comprehensive, end-to-end support to ensure a smooth and profitable transaction.
Turn Your Dream Home into Reality with Settlin
India’s biggest real-estate resale and only digital broker Settlin can help you both in buying and selling of the property. We offer you the exclusive properties based on your preferences at suitable locations. Check how we can help you:
When you want to buy a home:
- Settlin streamlines your property search by offering a comprehensive database of serious sellers, ensuring 100% availability and decision-ready profiles.
- We manage property visits with precision, recording your feedback to refine future recommendations and make each viewing a positive experience.
- Settlin’s customer-friendly portal helps you do an apple-to-apple comparison among the ideal properties that match your specific requirements.
- When you find a property you love, Settlin facilitates a smooth transaction process. Best of all, we provide this end-to-end service at zero brokerage cost, making your journey to homeownership in Bangalore both efficient and economical.
When you want to sell your home:
- We combine an extensive buyer network with a focused property portfolio, ensuring maximum visibility for your listing among serious, potential buyers.
- Our approach to pricing is rooted in thorough market research, ensuring your property is competitively priced based on current market trends.
- We handle every aspect of the sale, from listing to closing, and provide expert legal guidance at no extra cost, ensuring a smooth and secure transaction.
- Our fee structure aligns our interests with yours—we succeed only when you do.