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12 October 2011

Why Home Purchase is Costlier Today

Property rates have been increasing steadily and people who have bought properties some years back are happy that their investment has doubled or tripled in the following years. As an investment option property is coming up as the best as there is no risk of loss with rates increasing at a fast and regular pace.

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Why home rates are shooting up is a big story. With all the construction materials becoming expensive this is not the only reason for shooting rates of property. The most important point here is that government has increased the time for approval of many projects. With so much demand for new homes the supply part is slowly progressing. Even though we see many properties coming up and with every new day there are a wider range of budget homes, in reality the home seeker is still under  tight spot. There are still few properties which come in the budget range for the middle class man. Also the down payment is a larger figure which many middle class families cannot come up with. Hence the decision of purchasing a first home gets delayed for later. There is again no later as people have waited and waited for property prices to fall or stabilise but the picture is not changing. In fact now the developers and builders have increased the rates of offering homes putting all the blame on the government time consuming procedures of approval of projects.
According to many developers the procedures of approvals of housing projects is tasking time and hence due to high demand and low supply the buyers have the face the high rates for buying homes. Putting forward the many advantages of properties available and also at various festive offers along with attractive interest rates on home loans the buyer still has to pay a higher amount to go in for purchasing a home. Homes which would cost in lakhs have now moved to crores and with the administrative costs also increasing who is at advantage the buyer or the sellers? or the ones making housing development and housing finance rules!

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