How to buy a home under an affordable housing scheme

In the recent past, the real estate sector has seen many new reforms and policies in favor of the sector. The Indian Government has taken many positive measures to boost the current status of the industry. Affordable housing is one of the major measures to boost the housing sector and provide a home to all.

This is the government’s ambitious plan to offer people affordable housing under the Housing for All initiative, by the year 2022. The mission behind this initiative is to provide housing for all by the year 2022, by that time Nation completes 75 years of its Independence. The demand for affordable homes has mounted substantially compared to a few years ago. It’s also because growth in household income has outshined growth in housing prices. But affordable housing means several tradeoffs—price, home location, conveniences, size, etc.

Now let’s see how to make a purchase decision under an affordable housing scheme.

• Make a thorough research about all the developers who are offering homes under Affordable Housing schemes.
• A starter affordable home, even if it is smaller may not offer all that you had dreamed about, but investing in it or purchasing it can be a financially sound move.
• The government has incentivized purchasing affordable homes for first-time buyers so check all the options available. Not only homebuyers can avail of interest subsidy on housing loans, but the tax on under-construction houses has also been significantly lowered down. With these concessions in place, even the mid-range housing segment has become quite attractive.
• Don’t overlook your budget. In the excitement to buy a house, people often overlook additional costs, which are quite considerable.
• Once you have purchased a house, you will also need to equip it with furniture and all, which, again, can be a huge expense. That’s the reason why first-time homebuyers should consider buying a starter home that meets their instant requirements and won’t make a hole in their pockets.

The decision to buy a home under an affordable housing scheme should be based on your specific life situation. Remember, a starter home works well when the EMIs for such a home is not much larger than one’s rental outgo.