“Is it a good time to invest in real estate? Will buying a home make sense right now?”
These are the questions that many of us are facing in today’s scenario. The COVID-19 pandemic has got countries battling the deadly virus while businesses are struggling to keep up the workforce afloat. With economies facing some of the worst lows in the past century, there is a lot of uncertainty in terms of job, career, dividends, stocks, finances, and bonuses. The residential real estate has not been immune to the effects of the pandemic either. Homebuyers and investors who were planning to invest in properties before the pandemic have put a halt to all their activities. Consumption and income have been affected equally due to a stop in all economic activities.
While the obvious answer to the questions stated at the beginning is ‘no’, you would be surprised to know that there are multiple upsides to investing in a tangible asset in the present scenario. Your plans of investing in apartments in western suburbs of Mumbai or Ghodbunder Road Thane do not have to be dropped altogether. Read on to know more about why investing in residential real estate might be a good idea right now.
The aftermath of COVID-19 has certified the fact that it is better to own an apartment than to live in rented accommodation. As per a recent report by a global consulting firm, there has been a steep rise, up to 95%, in the sale of residential properties in China, post the pandemic. If this acts as an example of an incoming trend, India is likely to witness a similar scenario. The recent monetary policy decision by the Reserve Bank of India (RBI) in March 2020 to cut down repo rates by 0.75 basis points (bps) will further promote this trend. This move on behalf of the bank has made home loans highly attractive for all the prospective buyers. The cut has resulted in the interest rates of private and public banks coming down significantly. This is a great opportunity for those who have been waiting for the right moment to take the plunge!
Home loans at the present interest rates make space for prominent savings which become a valuable asset for further investment or end-use. The borrower also gets to use the savings from the reduced equated monthly installment (EMI) to get a top-up loan, which is also available at lower interest rates.
The additional funds can be invested in taking care of the interiors related work once the apartment has been purchased. Another great advantage of the money saved by the lower interest rates is that the borrowers are now at the liberty of choosing a higher amount of loan. This means that they allow them to broaden their choice in terms of the size of the house, locality of the apartment, better amenities, and lifestyle facilities that make for a prominent neighbourhood.
If you are planning on investing in some great residential properties and taking advantage of the low-interest rates, The Dynamix Group has some amazing 2 BHK flats in Thane and in Goregaon’s precinct that you can look at!
