Have you always wanted to buy a house but felt that now isn't the right time? It's time to put that nagging thought aside, because the current situation appears to be ideal for investing in your home. Every crisis brings with it a slew of untapped opportunities, and a favourable environment for real estate investment is unquestionably one of the benefits of the pandemic. Here are some of the reasons why now is the ideal time to realise your dream of home ownership.
Many tenants have begun to view rent as an unnecessary and unavoidable expense as the pandemic has inevitably caused people to re-evaluate their expenses. Furthermore, they have begun to consider EMIs to be no different than SIPs, or Systematic Investment Plans, and that too for a relatively stable asset like real estate.
Home loan interest rates are at their lowest in decades, and the government is also pushing for easier home ownership. Interest rates on home loans are currently averaging less than 8%. At the same time, property prices are low, and many builders and developers are offering a variety of schemes and offers to buyers.
Unlike in the past, buyers can now enjoy peace of mind because builders have begun to sell ready-to-move-in-homes, which were previously quoted for properties that were under construction.
While it may be a good time to buy a home for personal use, it may not be a good time for those looking for short-term capital gains or price increases. Prices will likely rise in the near future. Furthermore, rental yields are very low, earning no more than 2.5-3%.
The Covid-19 pandemic did dampen the market during the first and second quarter. But, the situation began to turn and investments began to look up.
The sector received a boost when many companies implemented Work From Home (WFH) policies. With many companies allowing employees to take to WFH, employees are no longer bound to a location close to the office, which is frequently the Central Business District (CBD). They would not hesitate to choose a convenient place to live, often far from the crowds and not necessarily close to their office. As a result, this is an opportunity to purchase a property at a lower price while also being 'far from the hustle and bustle of the city.
Purchasing a home during these unprecedented times appears to be a risk worth taking. While physical assets may not provide immediate returns, they do provide great stability in an otherwise volatile market. Furthermore, the prospect of higher returns in the event of an economic recovery is appealing. The world is entering a new and exciting digital era, and many developers are turning to PropTech to help them adjust to the new normal. This provides a number of advantages to the buyer, ranging from making it easier to select a home to incorporating newer technologies into the projects themselves.
Overall, a variety of appealing prospects, such as lower interest rates, increased demand for stable assets, and appealing buyer's schemes, have made the pandemic an advantageous time for home investment. So, what are you holding out for? It's time to turn your dream house into a reality! Brigade Valencia
Bengaluru, Karnataka
India
Bangalore