Owning a house is one of the life goals of many people. If you are willing to buy your dream house, it’s time to make the move as the housing prices have seen optimal correction and are unlikely to fall further.
“In fact, all-time low interest rates, government impetus to housing for all, ample ready supply and attractive offers by the developers have made it an opportune time to buy a dream home,” suggests Ankit Goel, Director, Goel Ganga Developments. He shares a few factors cementing the fact that now is the best time to buy a property.
Reduced home loan interest rates
Owing to the pandemic, the Reserve Bank of India (RBI) employed a liberal approach and reduced the benchmark Repo rates on multiple occasions during the last two years. This resulted in a sub-seven percent regime of home loan interest rates. A year ago, the home loan rates were falling in the range of 8-9 percent. Now, the rates have reduced to seven percent or even below it. It results in a significant cost saving in the Equated Monthly Installments (EMIs).
If experts are to be believed, the home loan seekers must pay heed to their credit score as the best loan rates are offered to clients with a credit score between 750 and 800. Once the loan is availed at low rates, the buyer will enjoy low EMIs throughout the tenure of home loan.
Corrected prices and offers
At the time of the sudden breakout of the pandemic, the homebuyers deferred their decisions in the hope of a further decline in prices and hoped to get the best quotes once the pandemic phase is over. However, the nation is now prepared to move ahead with the Coronavirus. The home prices have corrected to the lowest level they can get, and further scope of corrections is limited. Moreover, the real estate developers are offering attractive rebates such as EMI holidays, absorption of stamp duties and furnishing at no extra cost. In addition to this, developers are also transferring the benefits of stamp duty rate reduction in various states to the potential homebuyers, resulting in further cost savings.
Supply-side enablers
This time, the real estate market is far better off than in the times of the 2008 economic downturn. At that time, it was a sellers’ market. Although, Coronavirus had temporarily halted the real estate and construction projects for a brief period, the arrival of vaccine has revitalized the sector. The new project launches have provided potential homebuyers with ample ready to move in options to choose from. In fact, a sufficient supply has enabled the buyers to negotiate and buy their dream home at bargained prices. Overall, it is a buyers’ market, and one should not wait further to go ahead.
Government impetus
During the current situation, the government has been prompt and active in providing relief packages. Be it announcing the National Infrastructure Pipeline or extending the benefits of Pradhan Mantri Awas Yojana (PMAY) for EWS strata of the society. The Government has also lent a helping hand by suspending the Insolvency and Bankruptcy Code (IBC) so that corporate borrowers do not face insolvency proceedings due to factors beyond their control. The ‘Housing for All’ by 2022 Mission is providing a conducive environment to own dream home. The extension of CLSS benefits has presented a unique opportunity to the buyers to go for the home purchase.
Real Stability
Come what may, the real estate sector remains one of the most trustworthy investments options available. With declining Fixed Deposit (FD) returns, an ever-fluctuating stock market, and dwindling Gold prices, the idea to own a home attracts a majority of people. Moreover, the corrected state of prices has made home-buying an even more desirable and feasible option to opt for. In terms of stability, the real estate and property market beat almost everything. If one is thinking of a long term investment perspective, a home purchase must be on the priority list.
All in all, the real estate sector is filled with confidence and positivity and the time is ripe for the homebuyers to go ahead with the purchase.