Metro cities in India appear to look like concrete jungles these days. The influx of millions of new residents has led Tier 1 cities to look crowded and become inefficient places to commute daily for work or live a laid back lifestyle. This has led to many looking at Tier 2 cities as an attractive option to buy a home. Navigating a Tier 2 city for the right place to buy a home can prove slightly difficult, especially for beginners. Here is a guide for the same.
- Why Are You Buying A Home
Establishing the goal of purchasing a home in a Tier 2 city is paramount before you start searching. Is it a rental property or are you planning to move here with a family? Is your house going to be occupied full time or serve as a holiday retreat for your family and friends? Knowing the purpose of your new home can also help you figure out whether your home loan eligibility allows you to secure enough funding for the properties you are considering.
- Narrowing Down Prime Locations
Key areas in Tier 2 cities can be reminiscent of Tier 1 cities. Knowing the ins and outs of the city, ideally with the help of a local guide, can aid in finding the right place to buy a home. Ensure you map out key locations early on in your search so you can prep your finances well in advance. This way you can compare property prices and get started on applying for a home loan. Compare policy prices via an online home loan EMI calculator.
- Consider Capital Appreciation
Capital appreciation is the increase in the value of your home over time. Not only can capital appreciation help you significantly when you look to sell your home in the future, but it can also serve to pay off any liabilities like your home loan interest rates, or serve as collateral in your investments. Usually, the suburbs of most cities offer places that go up in capital appreciation as more people find affordable housing there. Gradual growth in demand for this affordable housing leads to their value increasing over the years.
- For Rental Properties
If you are planning to buy a home that you will be renting out, ensure your property is located next to the industrial belts or tech parks of the city. People who move to cities for work prefer living next to their workspace. This way your rental property will be in higher demand and its value will appreciate over time. The benefits earned can help with your home loan interest rates repayment as well as become a separate income stream for you.