Have you harboured a desire to buy a house, but felt like this is not the right time to invest? It’s time to put that niggling thought aside, because the current context appears to be the perfect time to invest in your home. Every crisis is accompanied by a range of hidden opportunities, and a conducive environment to invest in real estate is definitely one of the boons generated by the pandemic. Here are some reasons as to why this is the perfect time to fulfill your dream of home-ownership.
As the pandemic has inevitably caused people to re-evaluate their expenses, many people living as tenants have begun to look at rent as an unnecessary and unavoidable expense. Moreover, they have begun to look at EMIs are no different than SIPs i.e. Systematic Investment Plans, that too for a nearly stable asset like real estate.
The cost of home loans are at their lowest in decades, and the government too is pushing for easier home-ownership. The home loan interest rates are currently averaging less than 8%. At the same time, property prices are at a low and many of the builders and developers are offering buyers a range of schemes and offers.
A new development is that unlike yesteryears, buyers can enjoy peace of mind as builders have begun to sell ready-to-move-in-homes which was earlier quoted for properties that were under construction.
While it may be a good time to buy homes for own use, it may not be a good time for those looking to benefit from capital gains or price increase in the short term. Prices are expected to rise in the near future. To add to it, rental yields are very unattractive, earning not 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 got a shot in the arm with many of the companies taking to Work From Home (WFH) policy. With many companies allowing employees to take to WFH, the employees now find that they are no longer tied to a place close to the office which is often the Central Business District (CBD). They wouldn’t give a second thought before opting for a convenient place to live, often far from the crowd and not necessarily close to their office. This is thus an opportunity to buy a property at a lower price, and also be ‘far from the hustle and bustle of the city.
Investing in a house during these unprecedented times certainly appears to be a risk worth taking. While physical assets may not yield returns in the short term, they offer great stability in an otherwise volatile time. Moreover, the potential for higher returns upon economic recovery is also an attractive prospect. The world is entering a new and exciting digital age, and many developers are using PropTech as a means to adapt to the new normal. This offers a range of benefits for the buyer - from making it easier to choose a house, to newer technologies in the projects themselves.
Overall, a range of attractive prospects, such as lower interest rates, increasing need for stable assets and attractive buyer’s schemes, have made the pandemic an opportune moment for home investment. So what are you waiting for? It’s time to make your dream home a reality!