Baner- A potential zone for housing and property buying

Pune has been, not surprisingly, the city with huge demands for residential spaces due to some of the most prominent IT Hubs, international educational institutions, high class infrastructure and various medical institutions. These have contributed to a great extent towards the life that we live in Pune at present. The fast moving days and the magical city nights are all part and parcel of life in a metro. However, for the builders and developers, exploring a location for housing and real estate projects construction is not easy. Builders have to monitor the price trends in that location, the investment required for the project, the local neighborhood of the site and many more such things.

Considering the Baner location of the city, the region emerged at a time when the residential prices in the central Pune were on a new high and the potential buyers and investors were hunting right properties for investment and the end use.  Post the IT developments in the city, new dimensions of real estate emerged in Hinjewadi area and later it spread to the Aundh region. However, the Aundh region could answer to the emerging demand for homes in that region only to a certain extent. Baner arose as a propitious location that could take control of the demand for housing for the established IT parks in Hinjewadi and also the overflowing demand for homes across Pune central.

Since then Baner has witnessed historical appreciation of 20-25% in property prices in the past few years. However, similar to other cities, Pune too faced the making of record of unsold properties including the new launches in the last year. With the reduced new projects in Pune to around 30% between Oct 20014 to Mar 2015, Pune’s real estate market seems to be passive at present. However, the availability of affordable properties, good negotiable range in pricing, IT hubs are all attracting buyers which have managed to keep the real estate market intact despite the slowdowns in the recent times.

Buying a property in Pune in locations like Baner can still get the buyers good residential properties in the coming time as many new launches are expected to hit the real estate market soon. One of the builders and developers is Naiknavare Developers Pvt. Ltd. Stay tune for more updates about the same. 

Why you should think before buying a property?

Buying or renting a property is one of the most confusing times one comes across in life when it comes to taking big financial decisions like investing in property. However, most of us think of buying a property after the age of 30, but we forget that investing in property for short duration does not prove to be beneficial as the property trends show only a marginal appreciation in the property pricing over a short duration of time. Hence, renting a property for a short period of time is a better option.

The following are some of the reasons why buying a property can prove to be a pitfall for a few:

Spending money on a property is a huge decision. It’s a big financial commitment that you should be confident of making possible before you pay the amount for a property.

The rate of interest on the finances taken from the financial institutions or the bank might vary. 

Hence, at times when the interest rates rise, your repayment amount will also increase proportionally. Thus, it is important to know the range between which the rate of interest would vary so that you can prepare yourself for the changes that might occur in the rate.

Expenditure over a property bought is not limited to the mortgage value alone. It also involves maintenance cost. Hence, you must be confident of being able to afford the maintenance costs post buying the property. If you extend your budget too much when you buy a property, then, you would have to compromise on your holidays, entertainment and leisure time expenses.

Once you buy a property, the flexibility to shift to any other favorable place gets reduced or limited. For example, if you want to switch to another company in a different city or location that is located far from your already bought home, then you would have to either find a job nearby to your place or sell your property out of helplessness.

Also, selling your property is not an easy task. You will have to monitor the property trends in the market and wait for the prices to go up so as to gain profit from selling your property.

If you happened to buy a property through a joint investment, then in case you split up, the process of sorting out the property gets more complicated and expensive.

Hence, buying the property at the right time in the right location is crucial. A well thought and planned financial decision regarding buying a property must be taken in order to reduce the risks of paying for the wong property. 

Why you should own a home over renting a property?

Buying a property or renting one is a tough decision to make for any person who does not own a property in today’s time! Buying a property is probably one of the toughest financial decisions you need to take in life. But, how do you decide whether buying a property is the right decision for you right now or renting a property at this point of time will be a better option for you?

This is a perplexed situation wherein deciding to buy a home or rent a home creates a lot of difficulties in planning your finances for the future. Hence, today we are going to help you know the two sides of the coin. The below are the benefits of owning your home:

• Once you are done with making the payment for the property you just bought, it will remain yours and it can be worth far more than how much you paid for your home.

• Buying a home is better as the value of the property you buy tends to appreciate with time, which you can use as an equity to help yourself afford a bigger home or to even fund yourself for a more comfortable retirement home.

• At the time of retirement you will not have to worry about paying rent and if you have completely paid the mortgaged amount by that time, then, you will be staying in your home rent free. You would not necessarily have the income you need to keep on paying the rent of a home, hence, owning your home will help you secure your post retirement life from financial crisis.

• You can renovate your own home, design it the way you want it to look like, spend money as you wish to improve your home and keep adding to the overall value of the home, unlike in a rented home where you cannot alter anything in the space without the landlord’s permission.

• At times, buying a property proves to be cheaper than spending money on paying rent for a living space over a long period of time.

Hence, hoping that these pointers help you understand the positive side of buying a property. We shall discuss some of the drawbacks of buying a property in our upcoming posts. Till then, stay tuned!