The Best Investment

Generally home values appreciate about four or five percent a year. Sometimes more, sometimes less. The figure will vary from region to region. Five percent may not seem much at first. Stocks(attimes) appreciate much more, and you could easily earn more over the same return with a very safe investment in treasury bills or bonds.

Take another look

Presumably, if you bought an Rs.20,00,000 house and did not pay cash. You have a mortgage, too. Suppose you putas much as twenty percent down, aninvestment of Rs.400,000. At an appreciation rate of 5% annually , a Rs.2,000 , 000 home would increase in value RS.100,000 during the first year. That means you earned Rs.100,000 with an investment of Rs.400,000. Your annual"return on investment" would be a whopping twenty-five percent.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the state is essentially subsidizing your home purchase.

Are You Buying a House or a Home?

As you read and study about buying real estate , you will often find the words "house" and "home" used interchangeably. There is a huge difference between a house and a home. A house is for the family, a place to eat, sleep, park your car, and put your possessions. "It is a material possession and an investment. A home is where you feel comfortable, warm, safe, and protected, meant for living. The purchase has logic and emotional bond.

While buying you have to balance your emotional and logical needs because there will be a time when the two conflict.

Example :

If you want a house with a view, but the payment is higher than you feel comfortable with on a twenty - year EMI.

Solution:-

Purchase the house and budget more carefully for the next few years, buy the house without the view and pay less. Make a larger downpayment by borrowing from your funds or familymembers, to get a lower payment. Get a flexible rate mortgage with a smaller payment in stead of afixed rate loan or buy a smaller house with a view.

When viewing the house, most people look at it emotionally and envision it as a safe, happy, comfortable home. Later, when making the offer or filling out a mortgage form, logic will enter, instead. That's when "buyer's regret" may come in.

Balancing Act

The trick in buying real estate is to view all decisions with both a logical perspective and an emotional perspective. If a situation presents itself that requires a trade-off, decide on whether there is a huge conflict or a small one. Logic should win the big conflicts, but emotion should always be a factor, even winning the small ones.

You will find yourself owning a warm, happy, safehome and an investment for the future at a price you can afford to pay.

Buying a Home with Resale Value.

There are many factors to consider when buying a home. Since most home buyers expect to buy a bigger and better home some day in the future, resalevalue is an important factor in decision¬making. You use the proceeds from selling one home to buy the nex tone.

While no one can guarantee that your home will grow in value, there are steps you can take to maximize potential gains.

Location

Location is the common stock phrase in realestate profession. However, what does it actually mean? Why repeat it?

It is repeated to emphasize there sale value of your home. The idea is to buy a house that will appeal to the largest number of potential home buyers. Good location can minimize negative influences on future resale value, and maximize favorable influences.

This will require you to make several choices.The first being community. Narrow your choice to a few local communities.

Determining Your Offer Price.

When you prepare an offer to purchase a home, you know the seller's asking price. But how do you come up with offer figure?