A question everyone asks while getting themselves into the real estate sector is How much down payment is? Or is it a real thing, or just the realtor made it? Hamza Chaudary, GM sales of OZ Developers, has answered these questions. Keep reading to know about the down payment reality.
What is a Down Payment?
A down payment is the upfront money that you pay while purchasing a property. It can be a specific percentage of the property price, like 10-20%. In the current time, it plays an important role in the buying process because:
It also reflects the low risk to lenders if you are financially committed. It can also help you in financing, as the other person or a bank can trust you because of the down payment
Is a Big Down Payment Really Necessary?
But is a big down payment always necessary? Not quite. In a discussion with Hamza Chaudary, he told us that 20% is a golden percentage in the industry. Well, it’s not obvious, but down payment can be as low as 3%. It all depends on the mutual discussion, the developer’s track record, and the relationship between the buyer and the owner.
Is it a myth or a reality?
Well, we can say it is a reality. Hamza Chaudary, GM Sales at OZ Developers, considers the down payment a golden number, but in reality, this is not the case. Customers have to research their possibilities and negotiate to make them acceptable to their budget.