How COVID-19 has shown us the way to have your own house?
The prevailing pandemic COVID-19 pandemic has affected everyone adversely but especially to the people living in rented apartments. This crisis has established the fact that having your own apartment is way better than dealing with the uncertainties of living in a rented space. People have also realized the significance of having a property, as an asset class in their investment basket, as a more trustworthy option offering steady returns compared to the highly volatile stock market that comes with heightened risks.
With very limited or no access to green spaces and high density within units, millennials now are looking at investing in a home of their own. As per a survey conducted by Anarock Property Consultants during the lockdown published in a reputed newspaper-“Of the total buyers looking at purchasing a home, 55% are aged between 25 and 35 years and 68% are end-users. In the H2 2019 edition of this survey, only 42% were in this age bracket. The general home-buying sentiment is also guided by cheaper home loan interest rates, which are today in the 7.15% to 7.8%, range,” says Prashant Thakur, Director & Head of Research at Anarock.
“The security associated with owning a physical asset during such a crisis has resulted in increased demand,” he says.
More tenants are considering purchasing their own homes as landlords are compelling tenants to vacate their places. Hence, this is pushing people to consider buying their own homes. Homebuyers are looking at affordable housing options.
Also considering the current crisis, the Reserve Bank of India (RBI) came up with a monetary policy decision earlier in March 2020 to slash repo rates by 0.75 basis points (bps). This move has certainly made home loans significantly striking, providing potential home buyers with an opportunity that cannot be missed. The steep cut has brought interest rates on home loans by public and private sector banks to their lowest, between 7.20% and 8.05%, in over a decade.
So those who were waiting for the right time to take the plunge, to have their own house, it’s the time. Don’t wait further!