As COVID-19 has forced us to figure out a new normal, we turned to our real estate experts to help us navigate the market. In this blog, our real estate experts have answered the ubiquitous question many folks are asking these days- is it a good time to invest in property? So here it goes:

The Coronavirus pandemic has undoubtedly shaken up the real estate industry. Virtual walk-throughs have replaced site visits, brokers have lost their ground, and real estate aggregators have got a big boost. But is this going to stay and how does it convert to the common homebuyer?

Well, experts are seeing this as the perfect time to buy a house. To boost the sector, the government has reduced taxes, some of the best options in the market are touching all-time low prices, most developers are offering fantastic offers, and all the purchases are happening in the safe environment of the digital world.

Developers are leveraging this time to transform their routine work into a completely digital environment and are using 3d renders, Virtual Reality systems and videos to reach customers. On the other hand, some recent buyers have also shown a shift in their behaviour. Many said that they are spending most time indoors and on smartphones and computers. Physical interactions which was a nuisance to many have now converted into video calls and also have become quite comfortable.

By the look of this, experts have stated that even after the whole COVID scene, dependence on physical site visits, face-to-face discussions and transactions will significantly reduce.

So Is Now A Good Time To Invest In Real Estate In India?

The interest rates are at the lowest if compared to the last few years. Rates are at the bottom, and taxes are as low as they can be. Hence, there hasn’t been a good time like this in decades. The heavy load of OOH marketing has been lifted, and it’s showing lucidly on the attractive payment schemes and offers which real estate developers across the country are offering.

Also, unlike in earlier years, now buyers can get completely de-risked, ready-to-move-in-homes at prices which previously fetched only early-stage under-construction properties.

However, if you are looking at the properties with a short term investment purpose, then you will have to look at other options. Because prices are unlikely to rise in short to mid-term. Rental yield also may not suffice in the coming months. But if your plans are for more than five years than nothing will beat a good real estate investment.

 

Government Incentives

 

PMAY Scheme

Image Source: Pradhan Mantri Awas Yojana Website

 

Recently, the Indian government has introduced PMAY scheme and several other incentives for first-time homebuyers to promote affordable housing. State government like Maharashtra and Madhya Pradesh has reduced registration charges.

From providing interest subsidy on home loans to reducing taxes on under-construction properties, the government has made sure that the dream of affordable housing does not stay a dream for home buyers.

 

Prices Are Touching Rock Bottom

Prices are already low, don’t expect them to fall any further because they are not going to. Developers are offering units at the lowest margins, and great sales offer like a gold coin, no GST, etc.

A stable government at the centre coupled with a change in market sentiment is going to see that prices do not fall any further, which leaves you at the point that this is the right time to seize the opportunity.

 

Attractive Home Loan Rates

 

Low Home Loan Interest Rate

 

If you have been watching the market, then you might have noticed that the prices have mostly remained stagnant in the last 5-6 years across India. Expect some new hotspots in major cities, the prices of real estate properties were stuck at a point. Not only that the prices have stooped now, but the reduced cost has also been clubbed with an all-time low-interest rate. Prime Minister’s real estate economy booster package is benefiting millions of homebuyers then why should you stay behind. In addition to this, RBI has recently announced a reduction in REPO rate which makes home loans even less expensive; meaning-less EMIs over the years.

 

RELATED POSTHOW IS THE RATE OF INTEREST CALCULATED ON HOME LOANS AND EMIS?

 

Other Important Considerations

Home buying must always be followed by a clear thought about the purpose of the purchase. If the purpose is end-use, one must know which area suits their lifestyle needs. If the purpose is an investment, one must look at the demographics of an area and the potential for growth, which could be driven by upcoming infrastructure projects, the growth of the commercial segment, or housing demand in general.

 

Conclusion

At the current rate, buying a property instead of renting is a desirable option for homebuyers. But when prices rise, it will not be as attractive as it is now. Work from home is going to become the norm, meaning more time at home. Then why stay in a property which can be asked to vacate within a month.

Real estate experts have clearly stated that paying rent is a losing proposition compared to owning your own home, in these days. Because even if you claim a tax benefit on your rent, you are losing a great opportunity to build a lifelong asset for yourself and for tour coming generations.

If you have been paying attention, then the market has already been sending you positive signals. So stop your wait-and-watch policy, stop struggling with the question ‘is it a good time to invest in real estate now?’ Go ahead and buy your own home today because this opportunity won’t last for long.

In case, you are looking for investment-worthy homes in Kharadi, Pune, then do not look further than Zen Estate by Mahalaxmi Group; This is a residential complex of the year 2020 and also a winner of ‘Best Project In Kharadi’ award. Come to Zen Estate for premium riverside 2 and 3 BHK Flats In Kharadi Pune and get a peaceful life for forever.

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