The COVID-19 pandemic has brought a radical change in our daily lives. It made us realize not only the importance of having a safe roof over our heads but also smart investment decisions that would stand out with us in good stead during a rough patch like this. Additionally, with the growing importance being given to work-from-home, more companies are going to stick to this trend for a much longer time than anticipated. Hence, making it even more essential to own a home that provides a comfortable living atmosphere. Although, the apprehension about investing in a property during a crisis like this is justified but in reality, it could turn out to be one of the best decisions. Here are 3 reasons why you should consider investing in your own home despite the pandemic.
1. FAVORABLE FOR BUYERS:
The real estate market before the COVID-19 hit was more inclined towards the sellers due to higher valuations, declining Loan to Value ratio (LTV), and unfavorable interest rates. However, the scenario changed in 2020 and it became more favorable for buyers with a higher Loan to Value ratio, lower valuation, and cheaper credit availability. The urge to own property is at an all-time high post the spread of Covid-19. Lower price rates and home loan rates have enabled more buyers to invest in a property. Furthermore, customers have a wide selection of options to choose from in almost all locations and budget bandwidths and can buy ready-to-move-in properties at reasonable prices.
2. HOME THAT CHECKS ALL THE BOXES:
Currently, the market has a good inventory of ready to move in and nearing possession homes. You can truly get a dream home that checks all the boxes – location, lifestyle amenities, security, quality, and convenience. The prices of ready-to-move properties are almost at par with under-construction homes in several areas. Something which has never happened before – and it is unlikely to happen ever again. Never have homebuyers had such a tempting choice range, at such low prices.
3. BETTER GOVERNMENT SUPPORT:
Post the spread of the COVID-19 virus, the government has been proactive in announcing fiscal and other support in favor of the buyers to infuse a cash flow in the economy. Residential real estate demand is mainly local in nature. As mentioned above, the government has announced benevolent interest rates coupled with lower LTV. The home loan rates in India are at an all-time low in 15 years after the Reserve Bank of India lowered the repo rate. Following this, many financial lenders extended the same support and have lowered the home loan rates, which means you can buy a bigger home at a much cheaper price.
In conclusion, because of the above-mentioned reasons, it surely seems to be an ideal time to invest in your home. However, it may not be an accurate time to invest in a property with a sole focus on capital appreciation unless one has a really generous investment horizon.
