After the budget change of the year 2021, a lot of people are asking the question over and over again of whether it is the right time to buy a house in India. We know how much you are longing to have your “Home Sweet Home.” Whatever be your reason for looking for your own home, the current phase is indeed the best time to buy a house. Here are a few reasons which will answer every question in your head about buying your cozy space.
1. Stability In The Indian Real Estate Market.
In the current economic uncertainty and pain, investors are looking for assets that are stable and provide decent returns, if not high returns (that are deemed as “high risk” domains). As compared to constant volatility in the stock market, real estate or the property market has in recent times, gained positive sentiment among investors as a stable and reliable asset which further made the contemporary times suitable to buy a house in India.
2. Decline In Property Prices.
According to what the RBI estimates, even before the pandemic, house prices declined by 1% in the first quarter of 2020. Furthermore, various polls estimate the house prices to decline by 6% this year and by 3% next year. Add to that, even previously overheated market locations in Mumbai are going through a cooling phase with the rents plummeting by up to 25%.
Overall, the correction has not only been in the high-end luxury part but also across all property segments including student houses.
3. Home Loans At Low Interest Rates.
Another reason why it is the best time to buy a house now is, the reduction in home loan interest across many banks including SBI and Union Bank of India. This has been mainly enabled by the RBI’s decision. As a first-time homebuyer, you can avail a home loan at an interest rate as low as 6-7% compared to 8-9% a year back. This means that for a home loan of INR 50 lacs taken for 20 years, you can save around INR 4,500/- in monthly EMI’s or up to INR 11 lacs in EMI saving over 20 years.
4. Better Property Deals.
Apart from low property prices and loan interests, homebuyers can also avail themselves of many lucrative deals being offered by property developers. This has been mainly driven by a large number of unsold flats (thanks to the extended lockdown period) and builders looking to clear these records before working on the new projects.
Some of the freebies rather called giveaways, which were being offered by builders during the present festive season include cash discounts, easy payment schedules, complimentary home interiors or decor, free club membership and sometimes even free iPhones.
5. It Is A Buyer’s Market To Buy A House.
All in all, Indian real estate now looks like a buyer’s market with most builders and developers facing a crisis with falling house sales, lower prices, and a limited number of new project launches. The current scenario is drastically different from previous economic downturns as the property market largely continues to be “overheated” and “over-valued”. Today, home buyers are in a much better situation thanks to higher “Loan to value” ratio and the availability of cheaper credit which further led the situation to be favourable to buy a house in India.
With the immediate future being uncertain for most real estate companies, it is the right time for first-time homebuyers to take advantage of the situation and find their dream home at a reasonable price. Despite all, you should still take necessary precautions before signing up with any property developer for your dream home. In short, take a plunge into homeownership only if you are prepared for it.