For Indians, purchasing a home is an indescribable feeling. Real estate investing gives people a sense of security because it is the least volatile investment and is immune to market swings. This is particularly true in a COVID-19-affected setting.
Do you want to know why this might be the perfect time for you to get your dream house? Well, you are at the perfect place. Let us see all the reasons why you get your home super soon!
Is It a Good Idea to Purchase a House During COVID?
People’s perceptions of house owners have shifted dramatically as a result of the pandemic. With work from home (WFH) expected to be the new standard, people who already have a house want to acquire a larger one.
However, with India still reeling from the second wave of COVID-19, is it the perfect time to buy a new home? The second wave, after all, wreaked havoc. Moreover, should you purchase a house that is still under construction or one prepared to move into?
Can you invest in property solely for the sake of profit? Well, let us first have a quick rundown. Thanks to progressive reopening, pent-up demands, the prior quarter’s holiday season, and the continuous vaccination program, economic recovery is picking up traction.
It has also driven the adoption of real estate to new heights. In January-March 2021, consumption returned to nearly pre-COVID rates, as per experts.
The pandemic might be on the verge of doom, but its consequences will affect us for a long time now. And that is why economies are experiencing decadal lows. Home loans are available with an interest rate of just 6.5% on 80% of property value to uplift the property investments and bring the enormous influx back to the estate market.
Also, it is much more beneficial to use NRE or non-resident external accounts for your loan applications, as this will keep your exit clauses safe and available if you sell the property in the future. So, yes, it is a win-win!
March and February were the busiest months in the history of internet real estate portals like PropTiger.com in terms of visitors. However, with the commencement of the pandemic’s new wave in April, property inquiries slowed.
Experts, on the other hand, perceive it as a minor setback. The Home Affordability Index is at its highest level ever in eight major metros, as per an IMGC analysis. It will most positively boost later in the year-end.
National Housing Bank, Genworth USA, Asian Development Bank, International Finance Corporation have teamed up to form IMGC.
Since demonetization and, now, COVID-induced lockdowns, the strategies and global markets have fallen to the absolute lowest. The real estate market has started revising its prices to compensate for the pandemic losses and offering negotiations and deals to numerous prospects.
Thus, it is a great time because you get offers and deals never like before. After all, the sellers are open to colloquies.
“A host of factors such as historic low home loan rates, stamp duty cuts in few states such as Maharashtra and Karnataka, developers’ schemes to attract customers are a few favorable reasons.”
– Agarwala, Elara Group
So let’s get down to all the reasons why it might be the perfect time for you to invest.
Reasons to Invest in Property Right Now
From low interest rates to greater ROI’s, multiple factors come into play here.
Since the previous 2020 quarter, banks have decreased house loan rates. Thus, the banks have transferred the savings on to customers and increased housing loan demands. Rates on home loans are presently at a 15-year low.
To that effect, home loan rates were decreased by multiple bank firms in 2020. These include LIC Housing Finance, Axis Bank, ICICI Bank, HDFC, State Bank of India, and Kotak Mahindra Bank. They were further lowered in 2021.
They are now between 6.65 to 6.90 percent every year. Certain banks were only providing these historically low rates for a short time.
Canara Bank, Bank of Baroda, State Bank of India are public sector banks that provide even lower interest rates. The rates here range between 6.70 and 6.90 percent.
Numerous builders are giving various programs and incentives to guarantee that inquiries and purchases are not harmed due to the lack of a real site visit. As a result, it is an extraordinary moment for home purchasers to get a good bargain on their purchase.
Moreover, you can avail of other advantages as well.
Return on Investment (ROI)
It is widely assumed that property rates are at an all-time low at this moment. The worth of such an asset is likely to increase in the future, rendering it very tempting to property purchasers. In the long term, such an investment will aid in the accumulation of wealth.
Multiple Price Point Choices From Credible Builders
Many well-known developers are now providing homes that are within an Indian home purchaser’s affordability. Preference for mid-range plus cheap homes has risen dramatically in recent years.
People look for home prices ranging between Rs. 45 lakh and Rs. 90 lakh. This means that purchasing a house from a reputable developer on a budget is profitable.
Rental yields on real estate are estimated to be better than those from conventional sources. This makes now the best time to buy a home.
The renowned builders also deliver low-risk, finished, or near-completion properties while providing houses at various pricing points.
Long-Term Tangible Asset
It is a fixed, physical asset that brings contentment and reassurance over time compared to other financial investments.
There you go! You now know why this is the best time for real estate investments.
Though pandemic has been a low time for everyone around the globe, certain aspects of life might have become better. Financial experts pan-India believe this is the best time for homebuyers to get their dream homes.
So what are you waiting for? Make the best of this opportunity and buy a place that you can call your home sweet home.