Factors Impacting the Home Buying Decision

There are numerous factors to think upon when buying your first home. Buying a home has many wealth benefits. It gives you a reinvestment power which means, once you have repaid the entire loan, you can get a fresh loan such as mortgage, business or study loan for your children with the same property. Your home takes care of your future financial needs.

There are some macroeconomic factors that impact the home buying decision:

Interest Rates: It is like a coin with two sides. Either the rates might decrease with low borrowing costs and increased affordability or it may happen otherwise.

Property Prices: If there’s a downfall in the prices of the property then the demand increases. There are two types of markets depending under such circumstances which is Buyers’ Market and Sellers’ Market. A Buyers’ Market is when there’s supply of housing units more than the housing demand which in turn leads to reduction in property prices. A Seller's’ Market is when there’s more housing demand than there’s supply of the housing units increasing the property prices.

Rising Income Levels: As the income levels is rising the net income of a household in also increasing that results in more demand for housing.

Government of the Day: Government of India granted ‘Infrastructure Status’ to affordable housing projects in the Union Budget of 2017 which enables developers in this segment to borrow at cheaper rates like infrastructure projects. These benefits are getting transferred to the home buyers making more affordable.

Apart from all the above the ultimate hurdle before buying a home is the need of Down Payment. HomeCapital believes that everyone has to go through this phase and may be difficult to arrange funds for the same. Hence, they came up with a unique idea of assisting the first time home buyers with their down payment needs. They provide 50% interest-free credit through their partnered financial institutions. It's a really powerful and innovative idea bringing a positive change to the lives of millions of home buyers. They help you cross the biggest hurdle of down payment savings to fulfill your dream of Home ownership.