What are the Advantages of Buying Property During COVID-19 or Any Other Crisis?August 7, 2020 11:36 pm
The coronavirus is currently devastating the economies of nations around the world, with many countries attempting to precariously balance health and economic interests. As a result, nearly every industry has taken a hit as people simply can’t afford as much in light of the current crisis. But what does this mean for the real estate market? Simply put, is it safe to invest? Though property sales in India are currently down, there have already been signs that the COVID-19 the situation can lead to even higher confidence in real estate investing. Property is a much safer investment than you might think during this crisis.
Making a Move Right Now May Be the Best Option for You
Property hunting during a time when your area or region is shut down can have its benefits. There may be less competition for the houses in the areas where you might be planning to move, and sellers may be more motivated to sell or more flexible on price. Starting your hunt virtually while sheltering in place can be beneficial if you find you have the time to shop online more thoroughly; that extra effort may give you an advantage in finding a property you love within your price range. Once the crisis passes, there may be more property buyers back on the market and prices may escalate due to a more competitive market that benefits sellers rather than buyers, so taking a few steps forward now could be the right move for you.
Lending rates are at their lowest
The Reserve Bank of India had announced a cut in the repo rate, which will bring down home loan interest rates, as most of the banks have launched repo-rate linked home loan products. At present, the repo rate stands at 4.4%, the lowest ever. For those who have sufficient liquidity to invest, this could be a perfect time to strike a deal and get your home loan approved before things get back to normal.
Builders and property agents are desperate to clear their inventory, to generate liquidity and resume cash flows. Some of the builders are also offering refundable booking amounts, to lure home buyers. So, this can be a good time for you to negotiate a deal with your agent. If you have already visited the property before the lockdown, you are in a position to make a decision when it comes to a ready- to-move project. For under-construction property, you can take a video walk- through or a 3D tour of the sample apartment. Also, understand the locational advantages, neighborhood, amenities, and facilities available around the project. Factor in the final price, only after taking a realistic approach and assuming that project delivery will be delayed.
Demand has dried down and new supply is no more entering the market, due to the lockdown. Once everything gets back to normal, it will take at least a month for real estate construction to gain pace because when the lockdown gets lifted, it will take time for developers to resume construction work, as most of the laborers have left for their home towns. That means supply will take a little more time to pick up than demand. This can bring an upward trend in the property prices in the post-COVID-19 world, which means you may have to pay more than what you have to pay today, for the same property.
Finding a Real Estate Representative
If you are looking for a real estate promoter in South Kolkata then look no further as Poddar Groups is here to help you buy the property that perfectly fits your needs. We are the leading real estate promoters in Bansdroni with 350+ sold properties and happy customers, 35+properties ready for sale, and 10+ properties under construction. We will provide you a free consultation and make the whole process easy for you during this crisis. Even during these challenging times, there is still much you can accomplish in your quest to find your dream property by connecting with us.
Future of Real Estate Investing
With every crisis, society shifts to become more productive. This is the same within any industry. Economic crises tend to have long-lasting effects on the way people approach decision-making. When it comes to real estate, we won’t be able to see the exact effects of COVID-19 for months, if not years. Commercial real estate is struggling to adapt to the effects of social distancing, with COVID-19 effectively exacerbating a trend that was already advancing rapidly. Also, with people less likely to hold significant capital than before, real estate crowdfunding is a much safer investment. When the smoke clears after COVID-19, crowdfunding will likely hold a higher share of the real estate market. Seven months into 2020 and nearly the entire world has been forced into some kind of economic hardship. However, for those with the capital to spend, real estate is one of the safest forms of investment during these difficult times.
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