If there’s one place that’s made us feel safe during the lockdown, it is our homes. Home is where the heart is, but it’s so much more especially during prolonged periods of lockdown. Working from home has become the new normal across organizations and therefore calling a permanent abode ‘home’ is so much more important than ever before. You may be wondering if you should purchase a home and are probably confused if now is the right time to do so. Here’s how the real estate sector has been affected over the last few months and why buying a new home now isn’t a bad idea at all:
1. Price drop due to construction delays:
The pandemic has significantly impacted the labour force in the real estate sector. Travel issues, permit issues, social distancing at the workplace have exacerbated this slowdown. But now that most workers are re-joining the workforce, things are definitely picking up. The silver lining is that as a result of this, real estate prices are on a lower side and you can buy a luxurious dream house at a relatively lower price. Either way moving into a new house immediately is not possible, but buying one certainly is! First home buyers can use this opportunity to invest now and move in at their own pace once things get better.
2. Millennials’ increasing interest in real estate:
A house is one of the best investments you can make in life and if you’re a millennial, there should be no second thoughts about it. A house is especially important if you’re going to be spending more and more time indoors. Continuously moving from one rented house to another has proven to be quite taxing for several millennials. This crisis has more than anything, made millennials realise the value of stability, which is something only a good, permanent safe haven can give at this time. So, if you’re a millennial, buying a new home now when prices are relatively low provides you with the much needed financial security for the future.
3. Low lending rates:
If you want to take a home loan, now is the best time to do so. Why? Because the RBI has cut down the repo rate to 4.4%, the lowest ever. This is huge for first home buyers because it significantly impacts home loan interest rates. Property interest rates are at an all time low now. So, if you have a reasonable amount of liquidity to utilise, now is the best time to put that liquidity to use and get a home loan at the lowest possible interest rates. Once things slowly get back to normal, the interest rates will shoot up again and you’ll have to end up paying a lot more eventually.
4. Safe long term investment:
In today’s environment, Investors and people with liquid cash are sceptical about investing in volatile markets and are looking to put their money into more stable assets. Nothing speaks stability like a house does. A home is one of the most stable long term investments out there. Buying a new house is always a safe bet. It is an appreciable asset that holds value even when things go south. It provides good returns even after 10-20 years. With property prices at an all time low and real estate companies selling dream houses at lower rates, now is certainly the best time to invest in property especially for a first home buyer.
As you evaluate your decision to buy a house now, keep in mind that you must choose a real estate builder with a low execution risk. This means that the builder must have an abundance of resources, labour, government assistance and access to profitable capital markets to ensure that the projects see through till the end and property buyers have nothing to be anxious about.
With low property prices, low interest rates, greater bargaining power and the financial security of a stable long term investment, now is a great time for buying a new home!
At The Wadhwa Group, we offer a wide range of homes with the best amenities across top residential locations in Mumbai. Our access to the best resources, transparency and timely deliverance on promises ensure that you get the best home buying experience. With our support and guidance, buy your dream home with us today!