The unstoppable novel-coronavirus [COVID-19] has revolutionized global operations & ways-of-living since early 2020. While breaking the transmission of the virus, the importance of owning a home has (significantly) come into play.
In a recent survey conducted in 10 major cities, including Mumbai, it has been found that 65% of Indians are actively searching for properties in this pandemic market. Of these, 77% are intending to purchase for end-use whereas 23% are aiming for investment purposes.
As a prospective home buyer, you may face dilemmas concerning if this is the right time to invest. Given the shrinking economy & plummeting incomes, what are the benefits of buying a home in the Post-COVID World?
- Emotional Well-Being
India has been under lockdown for more than 6 months. Sure, the economy is opening & activities are resuming. But question yourself – how favorable do the odds look for functioning again with the ‘old norms’?
This lockdown was especially difficult for tenants – with some migrating back to their natives. Initially, there was no lax on paying monthly rents. Some were forced to vacate the houses on account of non-payments.
However, when purchasing a home, the one-time investment may feel overwhelming – but the emotional peace of living comfortably without any fears supersedes everything else.
- Living the New Norm
With work-from-home & virtual schooling being adopted as the new norm – owning a home, especially for working professionals & families, has become prudent.
But the question is – how do you manage your finances for making a real estate investment?
This leads to our next points:
- Government Relaxations
In our previous article, “Maharashtra Cuts Stamp Duty: 3 Main Benefits for Homebuyers”, we’ve talked about how the (temporary) reduced stamp duty valid from September 1, 2020 – December 31, 2020, & January 1, 2021- March 31, 2021, will work in the favor of home loaners & prospective buyers concerning tax concessions & leveraging opportunities on credit interest subsidy schemes.
- Build Your Savings
With RBI slashing repo & reverse repo rates to 4% & 3.35%, the sector has observed a domino effect. Home loans are staggering at an all-time low between 7.15 to 7.8%.
These reduced rates provide a home borrower with leverage to capitalize on these savings & invest it for his/her future benefits. For example, owning a home in a more luxurious area than thought about before the incentives.
- Real Estate as an Asset
Market reports confirm investor sentiments. In the pandemic, 31% of people have increasingly shifted their investment preferences towards real estate. It has been termed as a stable asset that will yield fruitful returns in the long-run.
Moreover, 55% of homebuyers & 60% of tenants confirm the speculations regarding virtual tours. They believe this to be a sufficient tool for shortlisting property decisions – likely to boost sector capital.