There is very little doubt that property is one of the safest investments today. Apart from being very safe and secure, a large section of the Indian society attach a lot of sentimental value to possessing one's own house, especially as a shelter for old age. But there are people who look at it as another investment opportunity fetching a decent and safe return. Majority of the young couples belong to this category. They don’t buy property for living in it rather they buy it as an investment.
Whether you are looking at property as an investment avenue or seeing it as a shelter for old age, one thing is for sure you need ensure that your hard-earned asset is well protected, in simple words, its insured. The most important thing is property insurance and you need not worry about the insurance cost, it is after all very cheap. For a mere Rs. 50 to 100/100,000, you can get your house insured against fire, lightening and other natural calamities. The house insurance cover will take care of a number of natural calamities like earthquake floods, cyclones and landslides. And what’s more, if you pay the premium in advance i.e all ten years premium at one go, there is a 50% discount on the premium. After the tragic earthquake that struck Gujarat last year, even the government has made property insurance a mandatory feature.
Now, housing finance companies and banks are giving credit on easy terms. This has encouraged home-seekers even in their late 20s and early 30s to purchase a house. If we look at the age profile of the loan-seeker a couple of years ago, it was 35 and above. ICICI Home Loan offer for 30 years has attracted the younger generation more than any other category. Even if we look at the interest rates on housing loan in the last couple of months, it has seen downward revision. The tax benefit attached to repayment of housing loan (up to Rs 150,000 on interest repayment and up to Rs 20,000 on principal repayment) brings down the effective interest on housing loan further.
The property prices across the country have come down substantially from the unrealistic levels a couple of years ago and the prevailing interest rates on home loan are at an all-time low. There is no second opinion that this is the time to buy a house. But make sure you get your asset insured against natural calamities.
