Places like Jayanagar and Basavangudi happen to be not just among the most popular house renting option in south Bangalore; they also happen to be popular among those looking to retire in peace. All of the attention that these places receive from retirees certainly has one effect – it drives the prices of homes up. People in their mid-50s now who are beginning to seriously consider whether they should choose this path to retire and buy a house, look at these popular retirement spots and wonder if now would be a good time to buy in. Housing prices happen to be depressed now and the interest rates on loans for homes happen to be at all time lows as well. If you happen to be 10 years away from retirement, should you still buy a house now to take advantage of the market?
The way buying a retirement home has usually worked always, you think about the actual purchase after you retire. You sell the home in which presently you are staying, in the city that you are working in currently, and then you search for a new apartment to buy in a city you will be happy to retire in. Now though, older buyers are beginning to look to buy a house even before they retire. They don’t want to be priced out of some of the more popular retirement spots. In towns like Kormangala and Adugodi, apartments for sale in south Bangalore have jumped up by a third every year. Even house for rent in Bangalore is beginning to sell better than ever before.
What is it that attracts so many buyers to buy now? They wish to take advantage of the unbelievably low home prices and mortgage rates that they see around today. The Housing Affordability Index run by the National Association of Realtor’s has found that homes have never been cheaper ever since they began recording data about 40 years ago, than they were last year. Median home prices in all kinds of retirement destinations are falling by as much is two-thirds. People used to buy homes here just to flip them. Today, the low prices are bringing people in who actually hope to live in these houses that they get at the bottom of the market. It you have enough money for a down payment and if you have no mortgage on your primary home, to buy a house now will save you staggering amounts of money. The time is now. Wait a couple of years to buy your house, and interest rates could actually claim.
There are actually a few warnings you probably need to keep in mind. Housing prices in all these retirement destinations are expected to start to climb in a few months. The only reason that the prices are low today is that there have been many foreclosures in the recent
past. The banks are stuck with more homes than they know what to do with. And prices in retirement destinations are expected to really climb faster than anywhere else in the country.
Not every house for rent is going to offer bargain prices though. Places where the foreclosures of 2013 and 2014 have been particularly harsh, places like North Bangalore or south Bangalore, you’ll find that the prices are as low as you want them to go. Places that didn’t experience too much tumult in the wake of the recession won’t really have that much to offer in the low prices department.
Lots more coming soon!