Currently, stable property prices and low interest rates seem attractive, there are indeed some advantages of buying a new home. Even with the fallen incomes, if the right measures are followed, one can definitely get benefitted by investing in a new home.
But what does really make sense? Renting vs. Buying a house?
You will know with this article…
The COVID-19 pandemic has constrained people to rethink buying a new home. This thought still prevails despite conditions that are in favor of homebuyers.
Currently, stable property prices, attractive schemes from developers, and record low interest rates are making people think of buying a new house. But, the choice to buy a house needs cautious thought, particularly when pay levels are falling, property costs are expected to stay humble and rental yields are on a decline.
People need to understand that in the pandemic-led slowdown, it is important to hold on to liquidity and invest sensibly.
But, should I buy or rent a house?
For the people who have their jobs and pay levels intact, and who have been hoping to buy their own house for a long time, it is indeed a good time to purchase a home.
If the price structure for the homes in the course of the last 4-5 years favors your choice, there are sufficient ready-to-move homes in the market. And the fact that buyers may hold the negotiating power in this market just makes it more tempting.
Well, it’s an ideal time for those who have been looking to buy a home for a long time. For the first time ever in the last 15 years, the real estate market has turned into a buyers’ favor.
For the people with a few or more financial crises, they need to hold a choice to buy a home until they see an adjustment in their incomes.
With the economy under heavy stress, developing joblessness, and outward movement from urban areas, the rental rates, and property costs may continue to stay under tension.
Even if you can buy the house, thoughtful consideration is essential.
Here are some major benefits of buying a home right now…
- Low interest rates
This year, we saw the lowest repo rate. The move from the Reserve Bank of India made homebuyers to think strongly about the new home purchase as interest rates were brought down.
- Attractive schemes for homebuyers
In order to move fast, most real estate developers are bringing attractive offers on available inventory. Sales need to start again and hence, profitable payment plans, schemes, and discounts are being offered on flats and apartments. If you check around, many developers are also offering refundable booking amounts, cashback offers, free cancellation to help homebuyers. So, this could be a great time to strike a deal for a new home if you are willing to discuss it.
- Possible price rise in the future
As we mentioned earlier, property prices are stable right now. The slowdown caused by the COVID-19-led lockdown brought the real estate industry to pause. With everything reopening gradually, there can be an upward shift in property prices. So, if you invest right now, you can be lucky enough to reap the benefits of appreciated property prices in near future.
It is critical to take note that while those paying home loan EMI can guarantee an allowance of up to Rs. 2 lakh on the interest components of the home loan in a year.
For those who want to know the benefits of buying a property right now, you can read our article on the things you should know before buying a home in a pandemic.
Ideally, the COVID-19 pandemic is a once in a blue moon event and the benefits it brings for homebuyers are amazing.
For some, renting might be a good decision, but buying a home right now will bring you more benefits in the future.
Home and hearth should be secured while chances are in one’s favor.