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With the ease in lockdowns and the government’s move towards a full unlock, the question plaguing most home buyers mind is whether now is a good time to buy real estate.
The uncertainty COVID brought in these few months has been phenomenal. There has been a paradigm shift in people attitudes and responses.
The safety and security consideration among people has increased many folds.
Let us see why today is a great time to buy your own residence.
Sense of Security
With uncertainty all around, people are looking at a sense of security. Buying a home now would help ease the uncertainty. Traditionally buying a home has always been associated with security.
India is one of the few geographies in the world where people rate buying a home highly over any other mode of investment.
It is also a social need in today’s times to have your home. An own home provides security, confidence and identity to most buyers.
An own property is the ultimate fallback for anybody. While most people don’t buy it for this reason, the motivation behind this should not be missed
Performance over other assets: Performance is measured in terms of the appreciation an asset receives over time. It has been shown that real estate gives you one of the highest returns on investment. While interest rates have stagnated over time, property rates have only moved up over time. Rentals from properties give you an alternate source of income while your property appreciates.
McKinsey, a leading consulting organisation looked at the returns from more than 10,000 real-estate investments across asset classes in 14 major cities over a 19-year period. They found that real estate returns tended to be inversely correlated with those of conventional assets. Significantly, this means they serve as a good diversification play for the portfolios of most investors.
There is no other asset which gives you income and appreciates like real estate.
Home loan Rates:
With the pandemic, banks have lowered interest rates on home loans.
According to business today, a leading news organisation, Home loan interests have fallen to a 15 year low. This effectively gives you a great leverage and advantage. A plethora of banks are vying with each other for the home buyer today. Moreover, due to the decreased interest, the net value of your purchase also goes down leading to more savings.
COVID 19 has wreaked havoc in the demand supply gap. There are builders who are saddled with huge unsold inventory.This is an opportunity for the home buyer as his bargaining power goes up.Home buyers are availing up to 25% discount on properties compared to Pre COVID times. This supply inequality also gives you options to get more freebies and value adds from the builder.
Government Support :
The Government has stepped in with a stimulus package to rescue the real estate industry.This has been done to keep this industry in better shape than before.The stimulus package has led to faster recovery in the cities.The longer a home buyer waits, he loses this opportunity of buying homes for less