Determine your Affordability for Buying a House

Home buying is quite a complex process. The most important thing that you are supposed to consider amongst the various complexities is your affordability. It is extremely important for you to calculate the value that you could afford for a house.

i. Know the overall Market conditions:
Investigate what comparable properties have sold for over the past three to six months.

ii. Search and buy within your means:
You should search for a house which falls in your estimated price range to avoid any future financial crisis. The amount you can afford to pay for a house depends on your income, the amount you must continue to pay on other debts, the amount of cash you have for the down payment and closing costs, and the interest rates available to you.

iii. If you're waiting for prices to go lower, think again:
Real estate is a bit like the stock market, i.e. it's unpredictable. Though some people might be waiting on the sidelines for housing prices to dip lower, but its very rare to find a property price going down in the present Indian context.