Owning a home is a dream for many Indians. However, every season may not be a good one for buying a home. Presently, the Covid pandemic has disrupted almost every industry, including real estate. However, industry experts believe a volatile stock market and underperforming mutual funds have raised the need for a stable asset class that can give better returns.
And what a better option than buying a home at Hiranandani Parks, Chennai. Several surveys conducted by property consultants recently have revealed that a vast number of new-age homebuyers are willing to buy or invest in a home in the coming 3 to 6 months.
To make the market more attractive, Hiranandani Parks, Oragadam, has also come out with a long list of offers that include premium furnishings vouchers for Rs 7 lakhs, assured rentals of Rs 35,000 per month for 30 months, cashback offers, zero cancellation charges, flexible payment schemes, free membership to the clubhouse, free villa design when you buy a ready-to-build premium plot and more trendy offers.
As per an ANAROCK report homes priced between Rs 40 lakh and Rs 1.25 crore are in the highest demand.
Here we take a look at 4 reasons why this may be a good time to buy one’s home:
1. Positive factors
Compared to past events when the world has faced a crisis of such magnitude, like the dot-com crash, or the oil crisis, or the global financial crisis of 2008, the economic health and financial position of the residential real estate market is relatively better now. Unlike in 2008, the nature of the market has also changed. There is also a significant reduction in home loan rates. They are much lower than the rates in 2008-09. At the same time, the banks are also in a better position to lend now compared to the past.
2. Record low home loan interest rates
The Reserve Bank of India (RBI) has reduced the repo rate on multiple occasions in the recent past, resulting in some of the lowest home loan interest rates. In fact, a year ago when home loans were in the range of 8-9%, a Rs 50 lakh loan for 20 years at 8.5% p.a. would have meant an EMI of Rs 43,391. But you now might get the same loan at 7%, which would mean your EMIs could go down by Rs 4626 to Rs 38,765, resulting in savings of over Rs 11 lakh in total interest payable.
3. Better Government support
Unlike in the past, the government has been prompt in announcing fiscal and other stimulus packages. Residential real estate demand is mainly local in nature. IT/ITES industries have not been affected significantly and this is quite evident in the recovery that’s being witnessed currently. Bengaluru, followed by Pune, Hyderabad, and Chennai, is actually doing better compared to other cities. As noted above, we are in the midst of a very benevolent interest rate regime with the repo rate being the lowest compared to the 2008 levels.
4. A stable asset
The volatility and unpredictability of the stock market have not just eroded wealth, but also the confidence of investors. This has also helped real estate gain positive traction as a stable asset class. The luxury market may be hit initially as luxury home buyers typically have a higher stake in the stock market. Rental yields are also expected to improve. It will have a favorable impact on improving the buyer sentiment.