Covid-19 and its after-effects have devastated every industry, including real estate. With all that in mind, you must be wondering if this is the correct time to invest in a residential property. Though the first choice that pops up before you is a “no”, there are some great pros to buying a real estate property during the coronavirus crisis.
The world is struggling to fight against the coronavirus pandemic while at the same time, companies are striving to keep their workforce inundated. Unpredictability has taken over to a wide extent, in context to almost everything including career, economy, finances, rolling dividends, bonuses, shares, and other aspects. The effect of this pandemic is vast, also changing the buyer’s sentiment and investors who were earlier keen about contributing to the real estate field.
The coronavirus pandemic and its lockdown have introduced a slowdown in the economic activity of countries all across the world, affecting the demand & supply ratio. When a natural calamity hits a state or country or even if the emergency services get interrupted, all your house hunting goals may be disturbed but they shouldn’t be lost.
Seeking the perfect property when your locality has been shut down can offer some interest benefits, especially with digital marketing taking over the real estate sector. The competition for areas that you are targeting to find a property in will be less than usual. Real estate builders & sellers will be more encouraged to sell their properties on more flexible terms like price and maintenance charges. Looking for properties virtually will give you more time to go through properties and shop thoroughly. This will offer an upper hand so that you can find your ideal home that meets your exact requirements of living space, location, and amenities offered with your affordability in mind. The prices may elevate after the crisis has settled as more people will get out there seeking properties in this extremely competitive real estate business. Sellers will benefit from this much more than the buyers, who are common men so this step may be a smart one for you right now.
Amongst hundreds of other reasons, being a proud owner of a home is at the top of this list. Professionals from the industry are well aware that impulsive share market and floundering mutual funds are bound to increase the need for a stable asset class. Real estate is an asset class that provides required stability that can provide better returns on it. And there is no better choice than to buy or invest a lifetime’s income in a property. Nonetheless, residential properties have been at their best since the lockdown has been loosening, with lower interest rates on home loans and the market being driven by buyers.
Inquiries for residential projects have gone up by over a whopping fifty percent if compared to the before & after scenario of the covid-19 pandemic, as reported by multiple surveys. Homebuyers are more than ready to get back into the real estate market and start investing in homes.
Real Estate Has Proved To Be A More Stable Asset Class
The uncertainty of share markets has not just taken away wealth in free flow but has also shaken down the confidence of investors. This has given a rather powerful push to the real estate sector to achieve velocity and transform into a stable class asset. The luxury apartments market has been a hit in the earlier times as the end-users also have a bigger stake in the share market. Rental housing offers better price returns on account of the factors like secure jobs and eventual financial retention. All this will have an overall influence on enhancing the buyer’s sentiment in real estate.
Quicker Recovery With Improved Government Support
The promptness that the Indian government has been presented by declaring fiscal and other rejuvenating packages for the public, unlike in the past. The dependency of citizens on global funds for the housing properties market is restricted and that is known to everyone. IT has remained significantly unaffected which clearly shows how accelerated the recovery is being done. Though metro cities are speedily recovering, others are also catching up with better momentum.
Supply Side Aspects Positively Affecting The Market
If observed relatively with other crisis situations faced earlier by the world, the financial position of the nation’s money markets is far more stable in the current scenario. During the global financial crisis in 2008, the value of residential markets was far more overheated but that is much more viable right now. Also, it was a seller’s market back then but it is the opposite right now. Along with the improved interest rates and better ability of banks to lend, the market is in a more generous tax regime that just encourages investors & end-users to buy residential properties.
Demand Side Encourages
The fact that the current scenario is extremely favorable for buyers in residential housing cannot be stressed enough due to the outcomes from lower valuations, lesser interest rates, & increasing loan to value ratio. Also, the urge for homebuyers to own a property in time-critical times like covid-19 is at an all-time high after the lockdown. The end-users start looking for a property approximately 6-8 months before the actual purchase time, and the current factors only add to the piled-up demand in the cycle.
Outstanding Offers & Discounts
About right now seems like a festive period for the real estate experts, judging from the nature of deals builders and sellers are presenting. Buyers are being offered some sweetened deals like waiver of stamp duty and other official charges, complimentary car parking spots, and/or deferred payment setup. The current market is ideal for buyers where there are incredibly rewarding deals that can be discussed in the prime market. Lower interest rates are the most motivating factor to encourage homebuyers to identify this time as the perfect opportunity to buy now.
Therefore, the above-mentioned are the top reasons why one must recognize the perfect time to invest in a real estate property and grab the opportunity immediately. It may not be the best time to invest if your focus is on price appreciation unless you have an extensive investment horizon.