Amidst pandemic situation, should one consider a property investment? Well! The obvious answer seems to be ‘yes’ due to its benefits.
As most of the world has experienced lockdown, people have realized that owning an apartment is much better than dealing with the uncertainties of rented accommodation.
With uncertainty regarding the control of the spread of the novel Coronavirus, real estate investment may become the new normal. Furthermore, as per the experts, the real estate segments offers low risk and a great scope of diversification in comparison to the stock markets. Additionally, it offers a steady source of income, mainly during times of crisis. Presently, the Coronavirus pandemic has disrupted almost every industry, including real estate. Considering this situation, is this the right time to invest in property?
As per ANAROCK report, ready-to-move-in homes are currently dominating buyer preferences, and homes priced between Rs. 40 lakh and Rs. 1.25 crore are in the highest demand. Furthermore, around 80% of housing deals during the pandemic have been struck by end-users.
Here are the reasons why this may be a good time to buy a home:
Lending rates are at the lowest cost
Currently, the repo rate stands at 4.4%, which is one of the lowest ever. To describe, the Reserve bank of India had announced a cut in the repo rate, which means home loan interest rates are have brought down. For people who have sufficient liquidity to invest, this could be a perfect time to strike a deal and get your home loan approved before things get back to normal.
Builders and property agents are desperate to clear their inventory, to create liquidity, and restart cash flows. To attract home buyers, some of the developers are even providing refundable booking amounts. Therefore, it can be a good time for you to negotiate a deal with your developer. For under-construction property, you can make a VR tour of the sample apartment. Similarly, understand the locational advantages, neighborhood, amenities, and facilities available along with affordable housing around the project.
Demand has dried down and new supply is no more entering the market, due to this COVID-19 situation. Once everything gets back to normal, it will take at least a month or more for realty sector construction to gain pace. That means supply will take a little more time to pick up than demand, which means you may have to pay more than for the same property.
The graph of the realty sector is the finest as far as secured investments are concerned. Nowadays, we are all confined to our homes and safe, hence, realizing the importance of housing and investing in the same, irrespective of whether it is a small house or a bungalow. Though realty 2020 is showing a darker side, real estate in India will boom after COVID-19.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.