To buy or not to buy!

That is the question. Here are some answers.

So, you're thinking of buying a property, but you're not sure if it's the right time. And, if you've been doing even the slightest research, you're probably more confused than ever. Let's see if we can help you. Right now, there are a lot of divided opinions, probably more than ever before. Leave aside those silly spruikers who always tell us that "now is the time to buy" and consider only the genuine commentators and experts. And this is where opinions do seem to be genuinely and deeply divided. There are some really good people who are making really good arguments about why this is not the time to buy. And, in the other camp, the opposite is true. A lot of good people think it is a good time to buy.

If you're a would-be property buyer, it must be driving you nuts. Who do you believe? Well, the first way to answer the question about whether or not it's a good time to buy is to stop looking at the property market (for a moment) and, instead, start looking at your personal situation. Answer this question: Why are you thinking of buying property today? You see, we believe the simple truth, of whether or not it's a good time to buy property, is this: For some people it's a bad time to buy and for other people it's a good time to buy. It depends on who you are and what you want. But don’t buy just because someone told you that EMIs are compulsory savings. The Equated Monthly Instalment on your home loan is not an investment. It is a loan repayment where the bank earns interest off you. To give you an example, let’s assume you booked a ₹50-lakh apartment and took a 10-year home loan at 10.5 per cent to fund it. The EMI is ₹67,467 and at the end of 10 years, you would have paid a total of ₹80.96 lakh to the bank, of which ₹30.96 lakh will be the interest component alone! For the apartment to be a truly good investment, it will have to generate a return over and above the ₹80.96 lakh you paid for (not the ₹50 lakh that most people assume). We know that there are few greater joys in life than to buy your own home. However, there are few greater miseries in life than to be lip deep in debt and battling to make repayments on a home. If you are a couple and you will need both your wages to meet the current quoted repayment on a home, forget it. Do not buy. And for those of you who think I’m too negative or too conservative or too cautious, here's an optimistic prediction: The day will come when property, once again, will show good returns and be priced so that you can buy it and create profit from the first day of purchase (or, at the very least, break even). That day has not quite come. I will repeat, though, that right now is a really good time to be learning about investing in property. Read the good books, do the hard yard research, get the reports from the experts. Once you know what you are doing, you just might find that bargain investment. Even today. So, to buy or not to buy, that is the question. The answer is obvious. If it's safe and profitable for you to buy now, then buy now. If not, stay on the sidelines. There's going to be plenty to see in the property game in the months and years ahead.