Buying a home has become a necessity rather than a luxury in the Covid-19 era
August 7th, 2021
In the middle of the Covid-19 pandemic, owning a house that you can embrace as your own has become one of the most appealing propositions. People are now realizing the significance of physical and tangible assets as these would provide a better sense of peace and security compared to liquid assets. With the increasing importance of house ownership, investment in purchasing residential properties is undoubtedly bound to experience a steep demand during the ongoing pandemic. When you own a house, this house then becomes a big asset as the property’s value appreciates with time. As per the preferences of the home buyers, around 91% of the potential home buyers prefer to purchase a new house over renting, and 67% of these homebuyers also are of the view that a home is a need & not a luxury.
If we notice the trends in the last decades, a gradual and relatively steady shift in the preferences of more and more youngsters from owning a house to renting a home has become more evident and was a sort of a trend. However, when the pandemic hit the world, it forces anyone and everyone to be indoors, and thus owning a house has indeed become a priority for more and more families. Therefore this has become a very crucial and integral part of the lives of millions of people.
The effect of working from home on the ownership of a house
The pandemic has forced us to work from home for months together, and balancing both our professional and personal life from home is a new thing for all of us. So, more and more people now realize the significance of possessing their own space that can easily accommodate their needs and requirements within their own living space. The majority of the potential homebuyers require a mini office set up at home and outdoor space with more privacy. The significance of owning a house is rapidly gaining momentum during the Covid-19 pandemic. Thus, the potential home buyers are willing to pay a premium price for meeting their basic requirements. Thus, it is noticed that there exists a strong inclination in opting for ready-to-occupy homes over a project that would take a long while to be completed. This also indicates that owning a house is a necessity rather than another investment plan.
Major reasons for considering to purchase a new house during the pandemic
- Lower rate of interest – The lending rate has been witnessed as the weakest in the last fifteen years. This occurred due to the policy decision by the Reserve Bank to slash the repo rates and make them as low as 4%. As a result of the same, home loans have become cheaper, and thus, this is an opportunity that the potential home buyers should make the most out of it. Indeed, a lower repo rate has considerably reduced home loans’ interest rates in public and private sector banks by 7.20% and 8.05%, respectively.
- Very attractive payment schemes and plans – The smart real estate developers have found a great opportunity in this time to attract more and more potential buyers by the introduction of attractive payment plans and schemes for suiting the various customer preferences. Additionally, the real estate developers are strategizing to introduce cashback offers and refund schemes to the buyers who intend to invest in the residential projects during the pandemic. All the potential home buyers should deem this to be the perfect time for taking the right advantage in the prevailing scenario when the market is swaying. So, there is more room for negotiation as well.
- Possibility of the real-estate price to increase post-pandemic – There has been an inevitable and tremendous slowdown during the pandemic across all sectors, and the vast construction sector is undoubtedly not an exception. As the overall demand is higher than the supply of completed projects, there are significant chances that the property prices would increase after the pandemic. So, investing now during the pandemic can prove to be a smart move.
Purchasing a new home is undoubtedly a daunting task, but you should make the best out of the smart options available to you during the pandemic. Weighing the benefits and researching well would surely make you find and own your dream abode.