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Ask Mint | With property, loan rates down, it’s a good time to consider a buy

Ask Mint | With property, loan rates down, it’s a good time to consider a buy
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First Published: Mon, Jan 26 2009. 01 06 AM IST

Updated: Mon, Jan 26 2009. 01 06 AM IST
I am a non-resident Indian working with a private equity company in Singapore. I have been thinking of buying a property in Kerala for my parents for almost a year. Do you think I should buy a property in India now or wait a little longer?
I believe it’s a good time to consider buying property, as the current interest rates are somewhere at their 2006 levels and in some areas even the total cost of acquiring the property has come down by anywhere between 15% and 25%.
Moreover, since you are buying a property for your own use, I think you should seriously start exploring options. In times such as this, when sales have dropped, developers would be more than happy to negotiate and what’s more, there are higher chances of you getting a property of your choice.
If you are able to further negotiate a good discount where the rates have not come down much, and at the same time get the property you like, then perhaps that could be the best thing for you. In any case, one will never be able to call a correct bottom.
I am a Union government employee and want to buy a property that costs around Rs35 lakh. I have two options available: 1) I can opt for a part of the loan from my employer and the balance from a lending institution. 2) Or, I can take the entire amount from the institution. Please advise.
As a Union government employee, you may be eligible for certain concessional loans from your employer and hence you may not want to miss that. For the balance amount, you could avail a regular home loan through a second mortgage. The process is similar to a normal housing loan. This home loan product is specially designed only for Union government employees to buy/construct a residential property.
Renu Sud Karnad is joint managing director, HDFC.
Readers may write in with their queries and comments to askmint@livemint.com
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First Published: Mon, Jan 26 2009. 01 06 AM IST