Top Five Reasons to Buy a Home Now

Kishan Thakkar K

Introduction

Pandemic has brought an unexpected hit to economic activity. The economic slowdown is good news for genuine homebuyers and long-term investors. The residential real estate market is at its best now, with the buyer’s market and lower interest rates.

The value of the property is at low levels, home loan interest rates are at the lowest, states have reduced the stamp duty and developers are offering flexible deals, which are some of the reasons for those who want to buy a house in 2021-22.

As per an ANAROCK report, ready-to-move-in homes are the preference of buyers, with prices between Rs 40 lakh and Rs 1.25 crore.

Here we take a look at seven reasons why now is the best time to buy a house.

Reason 1: Prices are low

The developers are coming with low prices and attractive discounts with the various payment options. The pandemic has been one of the major *turning points for economics. Due to the initiatives of the government related to the interest rates, stamp duty, credit-linked subsidy schemes, tax holidays for developers of affordable housing projects, etc, the real estate sector has been quite affordable.

Low ticket prices and better financing terms have kept demand resilient for the residential real estate sector.

Reason 2: Mortgage rates are the lowest

The Reserve Bank of India (RBI) has reduced the repo rate in the recent past, resulting in home loan interest rates dropping to the sub-7% level. The home buyers should use this opportunity of record-low interest rates with the necessary margin money.

The home loan interest rate was in the range of 8-9% a year ago, a Rs 25 lakh loan for 20 years at 9% would have to mean your EMIs of Rs 22493. But now you might get the same loan at 6.5%, which would mean you EMI could go down by Rs. 18639, Resulting in saving of over Rs 9,24,920 in total interest payable.

Although, “aspiring homebuyers must understand that the repo-linked home loans come with a customer risk spread and the lowest home loan rates are offered only to those applicants with credit scores over 750-800. So, they must check their credit scores before applying for the loan, and if they find it to be lower than 750, they should take steps to improve it not just to get the best loan offers, but also to enjoy low EMIs throughout the loan tenure,” says Adhil Shetty, CEO, BankBazaar.com.

Reason 3: Better deals from seller

Home loan interest rates are historically low, coupled with the low prices and additional discounts and benefits by the developer. The developers are offering several offers and discounts to buyers, which, combined with the government, results in a significant decrease in overall acquisition costs.

There are other alternatives on the market. The fact that homebuyers have such a tempting selection of options at such affordable pricing is unlikely to happen again.

Reason 4: Better government initiatives

The government has been active in announcing packages, unlike in the past. They have been rolling out several policy measures aimed at boosting investment activity in the real estate sector as well as other sectors.

The finance minister has announced the extension of the time to avail of the benefits of the purchase of affordable housing to March 31, 2022. The deduction benefit of Rs 1.5 lakh will now be available before March 31, 2022.

The government’s push towards Housing for All under the PMAY (Pradhan Mantri Aawas Yojana) will revive the real estate sector.

Factors to consider when buying a home

1. Do thorough research before making a decision.

2. Check the credential of the developer and real estate agent before buying.

3. Buying a ready-to-move-in project is more preferable to an under-construction project.

4. The project must be registered with the Real Estate Regulatory Authority (RERA).

5. Since the market is in condition to offer various options, choose from the multiple options.

6. In case it is the first purchase, check all the unexpected expenses you might forget to budget. Click here for the article – Buying your first home – some unexpected expenses you might forget to budget for

7. Buyers might have a certain misconception regarding buying the home. Click here for the article to know the misconceptions you might have as a home buyer.

Conclusion

Thus, because of the above-mentioned reasons, it surely is an ideal time to buy a house. The residential real estate sector is currently a buyer’s market. It is unlikely that it remains in the near future.

However, consumers are also advised to do complete due diligence and plan their finances. If you’ve done your research and searching for the right guidance, you can contact us at info@roodland.com. Wait no more, and get your hands on your dream house!

This opportunity won’t last for very long. The timing is just perfect!

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