Is buying a home in times of Coronavirus is a Good Decision? Must-Know 6 Reasons?
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Corona virus completely disrupted every industry including the Real estate sector. People are usually interested in purchasing a home because of enormous reasons. But the common one is the feeling of pride of ownership. However, all-time conditions are not favorable to buy a home.
An expert says an underperforming mutual fund & volatile stock market creates an impact on the need for stable assets that can give good returns. Also what can be a better option other than home buying and investment? Moreover, the residential home buying segment is at its best now, due to the low rates of interest and buyers' demand.
A lot of surveys conducted by experts clearly state that 50% of residential housing inquiries bounced back in these 3 to 6 months. The majority of home purchasers returned with their requirements in the top 3 metropolitan cities.
Please go through the valid 6 reasons to buy a home during Covid 19.
1. Positive Supply-side factors good impact on the Real estate market:
Comparing past events like the oil crisis, dotcom crash, & global financial crisis (2008). The economic health condition and financial graph of the real estate market are currently good. The reason I am reminding is because during GFC 2008 valuations of the residential properties market overheated. It is the same happening with today’s real estate market. Unlike 2008 the nature of the real estate sector is also changed. In the past 2008, it was the seller's market and but now its buyers market. We have seen a continuous reduction in the rate of interest under the residential home buying category. Now it’s low as compared to the past 2008 – 2009. And also our bankers were in a good position to sanction respected loan amounts as it was not in the past.
2. Low Home loan rate of interest :
Reduced repo rates imposed by the Reserve Bank of India on multiple occasions resulting in a drop in home loan interest rates. Now from this perspective, aggressive buyers don’t want to lose this great opportunity. However, it’s understandable that the repo-linked housing loans have a risk spread and the lowest home loan rate of interest offered only to those customers having credit scores 750-800. In case it is low then customers have to improve their credit score not only to acquire a home loan but also to enjoy the lowest EMI till tenure.
3. Government support: Announcing best fiscal and Incentive packages
The Indian government announced fiscal and incentive packages recently. Which has not been done in the past? For the real estate sector dependency on global funds is limited. The majority demand for the residential Real estate sector is local. IT and ITES sectors are not affected seriously and this leads to a noticeable recovery, as witnessed recently in Bangalore. Also, cities like Pune, Hyderabad, and Chennai are doing well as compared to other major cities. As going through the above, we are in the middle of a very good interest rate scheme with the lowest repo Rate as compared to the past 2008.
4. Real estate a Fixed asset:
An unpredictable graph of the stock business market just destroyed economic wealth. Also, withdraw their interest to invest in the stock market. It helps the real estate sector to gain positive traction as an investment as a fixed asset. The luxury market segment has a higher impact because luxury home buyers have a big share of investment in the share market. The rental market will also revive slowly if job security and economic conditions are favorable. All it’s a favorable impact on buyers buying decisions which result in gradually improving sales.
5. Availability of houses at a reasonable price.
Availability of affordable homes at a reasonable cost is the major cause to grab buyers’ attention to look for a dream home in corona times. It’s the best time for the buyers to take a step forward to buy a residential property because of low pricing and also they have a chance to book the property at their expected price because some of the builders and developers are ready to negotiate at their best satisfactory pricing.
6. Better deals on home purchase:
Generally, we had seen various real estate offers mostly on festive occasions. In the present scenario due to painful loss across all the sectors economy and uncertainty of a better future. Buying decisions of nonessential products and services especially by middle-class salaried peoples will be deferred. This will surely create a good impact on the high rise in the demanding residential home buying segment. Affordability is the prime focus for the salaried and middle-class groups. However ‘lucrative deals always come in such a case’. Good projects always avoid showing direct lucrative discounting offers. But buyers might avail of some attractive offers on easy pay options or waiver of certain charges. This is an ideal market condition for the buyers where attractive deals can be availed and negotiated. Also, the lower rate of interest in home buying creates a good opportunity to buy now.
Conclusion: Due to the above mentioned all the reasons. It's the best time to buy a residential home in your local area. If you are convinced of all the reasons then feel free to move ahead with your dream. If you are looking home in Kalyan then feel free to check out the latest building projects by Sonawane. Best Quality and affordable price home for all income group peoples.