MCOVID-19 seems to have given people a lot of time to rethink their investment decisions and for many buying a home has been a big one. According to ¡®India Real Estate Report 2020¡¯, there has been a significant shift towards homeownership in India in the wake of the pandemic. The report revealed that 89% of people consider the present to be the best time for buying a house. A majority (82%) also affirmed their plan to buy a property in 2021, registering a substantial increase in the purchase sentiment compared to the previous year (64%).
Uncertain job market in the post-COVID-19 world and liquidity crunch has made things all the more completed when it comes to thinkingabout investment. But COVID-19 pandemic seems to have put multiple things intoperspective for many. Among other learnings of these unprecedented times, owning a home rather than staying in a rented space has gainedsudden importance.
Recent government and industry developments ¨C such as stamp duty rate cuts, attractive builder discounts, and lower interest rates on home loans by top banks ¨C have made buying more conducive.??
AnarockProperty Consultants conducted a survey during the lockdown, which pointsto the pandemic being more of an opportunity in residential real estate sector. Accordingto the report, 48 per cent of the total participants in an ANAROCK survey,conducted to gauge housing market sentiment in COVID-19 times, chose realestate as their preferred investment asset class.
The survey also indicates that homeownership is now acompelling priority for millennials facing uncertain times. Out of the totalvoters favouring real estate, 55% are aged between 25-35 years ¨C and 68% areend-users. In the H2 2019 edition of this survey, only 42% were in this agebracket.
One of the most popular reasons for the switch in homeownership is the realization among tenants who were forcefully evicted outof their rented spaces, during the initial months of the pandemic. Owning a homein these unreal times has gained importance like never before. So, if you are considering a home purchase, here are some things you may want to take into consideration:
Amidst the pandemic, most prospective buyers had alreadyswitched to online portals for home searches. From price range and pictures ofthe property, to availability of basic and social infrastructure, there aremultiple websites that provide ampleinformation about properties. With the click of a button, you can see all the details thatare important to you. In addition, by touring homes virtually, you can see manymore than would be possible in a single day with your real estate agent.
Take time to research the areas where you want to move into - thearea¡¯s home values and the average selling prices for the type of home you areinterested in purchasing. Ask friends and family for realtor recommendationsand check out their credentials and online reviews. It's always a good idea ?to streamline your agenda and always prioritizesetting up calls with real estate agent candidates to interview.
Investment properties in such locations might be better protected against different types of crisis, as small towns are generally less connected to the global economy.? Look for alternatives, where prices are more affordable, and rental rates have not gone down a lot.
Visit websites of various banks and check availability ofloans, the conditions, rate of interest, tenure and other aspects. Compare thebenefits offered by each bank and choose the one that suits your requirement.Further, you can request the banks for a telephonic conversation or a videocall to understand more about the credit offer.
Many legal firms are offering online legal consultationservices. Make use of it. Check for the legality of the property papers and theviability of buying it.
According to ET,?don¡¯t stretch yourself.No matter how much you¡¯d love a fancy house, the EMI should not be more thanone-third of your family income. That¡¯s the UPPER limit.
Retrenchments, salarycuts or delays in payout are inevitable outcomes of an unstable economy. Beprepared for the worst. Before you think of investments always think ofadditional contingency fund. Build a contingency fund to cover at least 6months¡¯ expenses. This way you will not be forced to dip into your retirementsavings in a cash crunch.
Back in May 2020, the Centre issued an advisory to all states and union territories to treat the pandemic as an ¡®act of God¡¯ and suo motu extend the completion dates of projects. The government, in its statement, said that the extension of the timelines will protect the interest of homebuyers as they will get the property, though delayed by six months.
¡°This measure will save the projects and enable the developers to complete the projects within the revised time lines thereby safeguarding the interest of home buyers as it will ensure delivery of their booked flats/homes within the revised timeline. Delay of a few months is certainly better than not getting booked houses at all,¡± the ministry statement said.
Buying a home is a big decision, so it deserves to be thought about a deliberated. It is better to take some time before taking the leap, than rushing into a bad financial decision especially after how pandemic changed things.? ?