Should you buy a home during the COVID-19 pandemic?
Many persons who wish to buy a home or want to invest in a property right now needs to know whether is it a right time for investment or not?
As you know, almost all the countries of the world are currently facing and fighting with the Coronavirus pandemic. In this difficult time, businesses are taking essential steps to sustain as well as taking care of their workforce too. Due to the lockdown, many businesses in India are impacted and so their staff & workers. It not only affects the consumption and income of the person but also brought whole economic activity to a standstill. Lockdown impacted people in terms of jobs, bonuses, stocks, finances, dividends etc. Not only this, it also impacts the home buyers as well as investors who were ready for investment in various properties. If anyone asks you for property investment in this difficult situation of COVID-19, obviously, your answer will be no but you don’t know how much beneficial is property investment in today’s time.
Benefits of Investment in Real Estate
The various benefits of investing in real estate are as follows -
- Low lending rates – Recently, RBI had announced a cut in the repo rate which results in reduction of the home loan interest rates of the banks. Right now, the repo rate in India is 3.5% (lowest ever in India) and a best time to take a home loan approval for buying a house at lower interest rate. Hurry up and put a loan sanction application to your nearest bank as early as possible before the situation get backs to normal. Most of the bank recently launched many repo rate linked home loan products which you need to check in order to avail the benefit.
- Demand-supply slowdown – Due to lockdown situation in our country, demand has dried down and no more new supply is entering into the market. Once things will be under control, real estate construction will gain a momentum approximately in one month. As you know right now, most of the labourers have travelled to their home towns. Hence, after the lifting of lockdown, developers need some time to resume the construction work. It means that supply will take a little bit more time than demand to pick up which results in increase in property prices after the end of COVID-19. It means you need to pay more that time than the amount you are paying today. Hence, it is beneficial that every person should make more investment in real estate sector right now to earn maximum profits in future.
- Deal negotiations with Agent/Developers – If we take the current situation, builders as well as property agents are desperately looking for –
- Clearing their inventory
- Liquidity generation
- Resuming of cash flows
In order to attract buyers, some of the builders are also refunding the booking amounts to the home buyers. Therefore, this is a good time for you to negotiate with the developer/agent regarding the property deal. In case you have already visited & checked the property before the lockdown, it would be easy for you to take the right decision (In case it is ready to move project).
In case the property is under construction right now, you can easily view the location through video walk or 3D tour of the sample department. While taking a video walk or 3D tour, you must understand what the project is offering to you - location benefits, amenities offered, facilities available and the neighbourhood.
- Real estate is the perfect asset class – Real estate is considered as one of the safest industry for investment because of which people earn maximum to maximum profits in the coming future. This industry is proved to be the best for regular income as well as for the capital value appreciation. As per the ASSOCHAM president and co-founder of Hiranandani Group “Mr. Hiranandani” – from the last few weeks, real estate developers are receiving investor queries regarding buying of residential properties or pre-leased properties having high demand on rent.
As per experts, after the lockdown you can expect higher rate of return from the market. Therefore, it is the best time for the investors to make an investment and sign a profitable deal. As per the chairman of CREDAI national, it is expected that ROI for a real estate sector can be approximately 1.7X (Almost 2 times) for residential properties whereas it can be 1.5X for commercial properties within the period of 3 to 5 years. As you know, Indian currency has been depreciated due to the fall in global economy but in the coming months this might attract foreign investment too.
Real Estate after the COVID-19 pandemic
Most of the people expecting big losses in their businesses after the lifting of lockdown but as per the experts, there will be a big change in the various sectors and interests of the people. After the end of the COVID-19, people will give more importance to health, safety and their wellness. Technology will play an important role in making contingency plans to handle the unexpected situations and data driven approach to decision making in problematic situation such as COVID-19. After the end of COVID-19, people will show more of their interest in making investment to their health, safe-keeping and future whereas millennial buyers who never thought of investing in their own home will come forward for investment. Those people who are living in their rented houses have realized the importance of safety & security of living in their own house during the lockdown & now expected to change their place from rented individual to a home buyer. In COVID-19, people are locked in their houses and hence realized the importance of investing in their houses for future irrespective of the size of the house (A small flat or a Bungalow). As per expert’s prediction, there will be a boom in the real estate industry of India after COVID-19.
How FinacBooks helps you in buying a home during the COVID-19 Pandemic?
FinacBooks is an Indian portal of real estate agents having more than 10 years of experience in offering property solutions to individuals and small businesses. We are having a wide network of real estate experts and having operations all across India. We are partnered with well-experienced, knowledgeable and professional real estate agents having good geographical knowledge about all the regions of India. We are experts in selling and renting out flats, apartments, shops, and offices to individuals and business owners. If you are searching for a property to buy or want to sell your existing property, you can contact us at 8800221252 or you can also e-mail us at firstname.lastname@example.org
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