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calenderApr 29, 2024

Exploring new horizons: Buying a home in a different city

Venturing into the real estate market of an unfamiliar city comes with its own set of challenges and opportunities. Whether you're contemplating availing a Home Loan in Mumbai to purchase a home in Gwalior or Nagpur or even stepping beyond your usual boundaries to explore new locales, understanding the local market dynamics and financial undertakings is crucial.

This careful assessment ensures that you understand the specifics of buying a house with informed precision and confidence, especially when dealing with essential processes such as Home Loan appraisal and Home Loan property valuation. Let’s delve into the crucial aspects that prospective homeowners must consider when expanding their horizons to new cities.

Advantages of buying a home in non-metro areas

1. Cost-effective choices: One of the biggest attractions of non-metro areas is the affordability of properties. Compared to metro cities, the price per square foot in smaller cities is generally lower, making it possible to purchase larger homes or land at a fraction of the cost.
2. Lower cost of living: Beyond just the purchase price, non-metro areas often boast a lower cost of living. This can translate into lower property taxes, reduced utility costs, and overall savings in daily expenses.
3. Less congested living environment: Smaller cities offer a break from the hustle and bustle of metropolitan life. This can mean less traffic, reduced pollution, and more green spaces, contributing to a higher quality of life.

Challenges and considerations

1. Home Loan appraisal and property valuation: When you apply for a Home Loan, banks take a detailed look at the property you want to buy right now, not what it might be worth in the future. This is where a Home Loan appraisal comes in, where the bank checks out the current market value of the house. So, if you're applying in Mumbai but buying in Nagpur, the bank will look closely at today's property prices in Nagpur. They might get local experts who really know the area to make sure they've got the value just right, which helps decide how much they can lend you.
2. Economic opportunities and growth: Non-metro areas might not have the same level of job opportunities or economic growth as bigger cities. This can affect future property values and should be considered if you're buying a home as an investment.
3. Access to amenities: While the quieter life of a smaller city can be appealing, it may also mean limited access to amenities like speciality healthcare, education, entertainment, and dining options.

Financial tools to aid your purchase

To facilitate buying a home in different cities, Axis Bank offers various Home Loan products. These financial products are designed to make home-buying more accessible and affordable, regardless of where you choose to buy.

Also, with Axis Bank Home Loan EMI Calculator, you can calculate how much you’ll pay each month, whether you're taking a ₹30 lakh loan for 20 years or a ₹20 lakh loan for 10 years. It’s a quick way to figure out your budget and get ready for your home loan.

Also Read: Top 10 advantages of taking a Home Loan

Conclusion

Buying a house in a non-metro area comes with a unique set of advantages and challenges. While the cost benefits and quality of life improvements are significant, the logistical and economic implications must be carefully evaluated.

Now, get closer to owning your dream home with Axis Bank's Home Loans, offering you up to ₹5 crore with flexible payback up to 30 years. Enjoy competitive rates and straightforward services to help you move in without a hitch.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.