Is this the right time for you to buy a new home?

Buying a new home is a major decision for everyone. Prospective buyers need to take into account several factors. Property prices, location of the property, and prevailing home loan interest rates are definitely three of the most crucial aspects of investing in real estate.

After an in-depth analysis of the current scenario in the real estate and banking industry, most of you will realize that ‘now’ is the perfect time to buy real estate property. Why?

Well, here are the details.

Stability in property prices

The most basic principle of economics simply states- when supply exceeds demand, the prices of goods are bound to go down. The real estate industry is no exception to this rule.

Buying property when prices have been on the rise for a long time is seldom the right move. At these times, the market has already seen a substantial upside and it may not continue the upward trend.

Without a shred of doubt, the real estate industry has been under some turmoil for the past 3-4 years. The prices of properties (land as well as houses) haven’t undergone any major increase during this period. So, if you make a purchase in the next 2-3 months you wouldn’t be spending too much more than the money you would have invested in 2016-2017.

Plenty of completed projects

Nobody wants to invest in real estate and then wait for years before the project is completed. Sadly, this has been the case on numerous occasions in the past two decades. Projects get delayed because of several reasons such as shortage of funds and land disputes among others.  Issues with approvals and certifications from the competent government authorities have also been common.

Presently, the situation favours the buyers on all counts. A substantial number of completed projects with a ‘ready to move’ status can be found with a lot of ease. If your search is comprehensive, you will be able to locate several projects providing possession in the next 2-3 months. As a home prospective home buyer, this is a great time for you!

Depreciation in home loan interest rates

After the arrival of the Covid 19 pandemic and the countrywide lockdown that followed, several measures have been taken by the Central Government and RBI to revive the economic downturn. They have been encouraging banks, NBFCs and housing finance companies to provide loans at lower interest rates.

Consistent decrease in the Repo Rate has ensured that the interest rates on home loans are brought down significantly. At the same time, RLLR based interest rates have ensured that benefits of rate cuts are transferred to the consumers quickly and completely. At present the interest on home loans is the lowest in more than a decade.

The conclusion

Yes, investments in real estate require a lot of thought and plenty of consideration. However, the prevailing circumstances where buyers can choose from several completed projects available at affordable prices under home loans with reasonable interest rate provide numerous incentives for you to buy your dream home now!