There is no place on earth like home. Even the most ardent traveller hit by wanderlust will happily confess that their home is the most beautiful place in the world. The COVID-19 pandemic has definitely reinstated that belief and made us vouch for our homes - for they have been our true sanctuary of safety. This would have given many of us scope to appreciate the comfort and luxuries of a home. Though the pandemic did put us a stop on most of our regular life, we definitely did enjoy our time with our loved ones at our safe haven.
Most of our plans were interrupted or have been put on hold owing to the situation due to various reasons like safety, finance, and most importantly the economic crisis, etc. However, the flip side of this is the current economic crisis has led to the prices of real estate going down which could be happy news for people aspiring to buy a house. This could be a great chance for them to make their dream come true. Read further to know whether or not the pandemic is the right time to invest in properties.
How will the pandemic affect the homebuyers?
Owning a house has been a typical and long-standing dream for most Indians. We cherish and work towards making it a reality. The pandemic, though an unfortunate event, can be their golden opportunity to achieve their dream. With that being said, there are certain things that are to be taken into consideration from the buyer’s perspective to understand how the pandemic may affect your buying decisions. Let us take a look at how the pandemic will affect the buyer.
Generally, home buyers are of two types - one with the required cash in handy and the other who is willing to seek a loan for the purchase. The current economic crisis has not only affected the real estate market, but also the banking industry which has caused them to lower the interest rates. This is favorable for people who are seeking home loans with a secured job to avail loans to fulfill their dream.
With the current situation, it is ideal for homebuyers to look at investing in properties that are ready to occupy for a lot of ongoing projects that have been put on hold. Although, this could mean that you cannot expect any discounts on the buy-in price. Also, it is advisable to understand that buying properties at the moment should be for the appreciation of the capital value and not the return on investment, which is low.
If you are looking at a property that is still in progress, you will have to understand and assess liability and property risks. Liability risks involve your ability to avail loans. The current pandemic has led to a lot of uncertainties in terms of financial expenses and job securities to a lot of people which could affect your ability to avail loan at favorable interest rates. Property risks involve the developer’s ability to complete the project. This could also seep into the liability risk and you should be prepared to face it or de-risk yourself. However, the major disadvantage in this entire situation is that the chances of the buyer getting a discount is extremely low.
With all of that being said, the decision definitely falls on the shoulders of the buyer whether to take advantage of the lower interest rates and take a shot at fulfilling their dream or waiting for this volatile market to stabilize before taking the leap.