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In the wake of the current pandemic where many companies have extended the work from home for their employees till June, 2021; is it still advisable to continue staying on rent or buy a home for yourself.
Today, this pandemic situation has made us all rethink the way we have been living so far and changed the way we think about most of things. Its what we call as “The New Normal”..
Consequently, homebuyers are looking to buy properties that are not only spacious but also located in less populated areas, irrespective of their distance from the workplace. We all know buying a house is a long and stressful process — and that was the case long before “Covid-19” or “social distancing” became part of our everyday vocabulary.
As per the Industry experts the revival of the residential segment has already begun and believed that against a volatile stock market and underperforming mutual funds, the need for a stable asset class that can give better returns is more preferred. And what a better option than buying or investing money in a home? Among other findings in this pandemic era, the importance of owning a home has restored its prominence.
Some of the considerations that are worth looking at when looking at owning a property in these times:
Change in Trend
The trend in the property searches across the country of owning a property is now considered as a sense of security and assurance, as against the risks of living in a rented space. Owning real estate is also seen as an important asset in one’s investment portfolio.
Stage of the Project
It will be favorable if the identified project is in advance stage of completion or be ready-to-move-in in next 12 months, to avoid any deferment in handing over.
Home Loan Interest Rates At Record Low
A year ago when home loans were in the range of 8-9%, a Rs 50 lakh loan for 20 years at 8.5% p.a. would have meant an EMI of Rs 43,391. But you now might get the same loan at 7% or even lower, which would mean your EMIs could go down by Rs 4626 to Rs 38,765, resulting in savings of over Rs 11 lakh in total interest payable.(as an example)
Demand of property dynamics
Earlier investing in real estate was based on three criteria’s: shorter returns, a higher rate of interest on home loans and the belief that renting a house is always cheaper than buying. However, the present pandemic situation is at the verge of changing this mindset.
Stable Property Prices
Buyers can expect property prices to remain stable in this scenario for the foreseeable future. Moreover, to compensate on the increasing production cost, developers are opting for the emergent native supply chains, which will scale up the construction in one hand and avoid handover deferment on the other side.
PEOPLE WHO WERE CONSIDERING A HOME INVESTMENT FOR A LONG TIME HAVE NOW STARTED TAKING THE DECISIONS FASTER
But for those who are experiencing some financial stress, the decision to buy a home can be deferred until they see stabilization in cash flows, and they could be better off staying on rent or renegotiating their monthly rent.