24 NOVEMBER, 2022

Mr Gupta and Mr Sanyal were office colleagues who had each planned to buy a house around the same time. Mr Sanyal had recently received his bonus and was in a better situation to invest in a residential property. Mr Gupta, however, was still short of a few thousand to arrange the down payment for his house purchase. When he had enough funds, he decided to begin his house hunt. While it was a bit uncomfortable due to the monsoons, he did venture out to look for a house that suited him and his family and got a perfect deal. After a few years, when the two colleagues met again at Mr Gupta’s house, Mr Sanyal was surprised to know that Mr Gupta bought a similar house but at a much lesser price. It also looked new as if it was only recently purchased. On the other hand, Mr Sanyal’s family had to move out of their purchased house the very next year due to the various construction issues and unhygienic neighbourhood.

The reason for this difference in their house hunting and buying journeys was one not many would be able to guess, one that is often left out of most home buying guides – it was the season. While Mr Sanyal bought the house in January, Mr Gupta waited for monsoons to buy his dream home. Looking for a house in monsoons could be a pain, considering the constant downpour, mud, and broken roads. However, during monsoons, you can get better deals and a house that stays intact for years to come. If you've been planning to buy a house, here are some reasons why monsoon could be the best season to do so.

  • Demand falls due to religious reasons
  • Most Hindus prefer consulting the Hindu calendar to make major decisions in life, purchasing a home being one of them. During the monsoons, it is usually the month of Ashada, which also clashes with Pitrupaksha, an inauspicious time to buy anything significant according to Hindu beliefs. This results in a significant drop in the demand for real estate in India. Often people do not even explore properties to buy during such periods. If you do not subscribe to such thoughts and beliefs, you can have ample options to choose from. There would be less risk of your house being booked by somebody else. Moreover, it is not always comfortable to leave the house and look for properties when it is pouring outside, which further results in a drop in sales during the rainy season. 

  • Sellers tend to offer better deals
  • As monsoons are usually not considered the best time to make any purchases, let alone buy a house, the demand for real estate properties tends to fall. As per the economics principle, as demand falls, the price falls too. Therefore, during monsoons, you can get better deals and lower prices for the house you want to buy. The sellers are ready to negotiate on the prices and amenities, and you can get more in less. To boost their sales, sellers often tend to slash the cost of the house and make changes in the terms of the sale agreement.  Similarly, due to the same reason, you can be in an advantageous position while taking a home loan. The lenders are aware of the fallen demand and often offer discounts and additional facilities on home loans during monsoons. You might also be able to negotiate the charges and even your home loan eligibility during the home buying season of monsoons. So, buying a home in the monsoons could help you get a cheaper home.

  • You can investigate the facilities better
  • Buying a house based only on its exteriors can prove to be troublesome when you move in. The construction and foundation should be strong and not crumble down with a few rain showers. Exploring house properties during monsoons can help you investigate better. You can ensure that the building faces no issues like seepage, dampness, or leakage during monsoons. You can get a clearer picture of the construction condition and can identify issues like stiff locks, windows and doors not shutting, etc. While you look for houses, also pay attention to the roof and walls to identify any moss or leakage.

  • Rains unravel ugly situations
  • By exploring houses in monsoons, you can identify the issues faced by the neighbourhood due to rains. You can check the surroundings and analyse the hygiene around the house, water logging of roads, water in the parking and society compound, condition of the drains and sewer, stagnant water, and know about power disruption. You can also check if a comfortable commute to the markets would be possible when it’s raining and what’s the state of the local traffic. You would also be able to judge if it's convenient to order essentials to your house during heavy rains. Judging your neighbourhood would help you decide if you should buy a house in that locality. If you decide to buy the house despite some minor flaws, you can ask the developer to mend the same or adjust the selling price.

    Monsoons could be the best time for you to start house hunting and buy your dream home. It can help you buy the best home available and get better deals. If you are short of funds or do not want to drain your savings yet, a home loan can be the best option. If you have a good credit score and an overall strong financial profile, you can get a lower home loan interest rate and it could be beneficial to opt for financing rather than using your savings. However, you must ensure to buy a house that you can comfortably afford. It should not make you struggle with other expenses or compromise on your crucial life goals. To ensure that the loan’s Equated Monthly Instalment (EMI) is within your budget, do not forget to use a home loan calculator. You can find the calculator for free on any lenders’ or aggregators’ website.

    So let these rains wash off your house-hunting worries and bring you happiness. Put on your raincoat and boots and get ready to buy your dream house today!

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.