Why is Buying a Home still Glamorous as an Investment?

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Why you should buy a home now

When we go down the memory land, not more than a decade back, the real estate industry was all about the seller. He had the upper hand, and the buyers had no other option but to give in. The last few years have seen power changing hands and shifting to the buyer.

As per real estate experts, even though the pandemic has forced us to think about investing twice and face a recession-like situation, buying a home is still a favourable investment. Let us delve deeper to understand the reasons –

• Dipping sales volume

If you have been keeping a tab on the real estate news in the last nine months, it is easy to guess that it is going to suffer a slowdown. The figures for the second quarter make it crystal clear. The unprecedented crisis has further stamped that it would be difficult for the sector to run full throttle anytime soon.

The unsold inventory figure stood at ₹ 3,70,000 crore after the end of the first quarter of 2020, and that in itself is staggering. Even though the production since the first quarter has been sluggish, the dipping sales number is making it worse. It gives you a chance to negotiate and book your dream home at a far lower price than initially anticipated.

• Higher resilience than most other instruments

Most other instruments depend on the market to determine their demand and prices, but real estate remains mostly unfazed by external factors. We have seen stocks tumbling and mutual funds with negative returns, but buying a home at a favourable location is more likely to appreciate in its lifetime.

• Government’s backing

The Indian government has been very supportive and are trying its best to push people to buy their first home. With RBI bringing down the repo rate, the home loan interest rates have fallen below 7 per cent making it a lucrative offer for those who were planning to acquire a real estate property. They are also offering tax concessions to ensure that you get multiple benefits for your recent acquisition.

Conclusion

Even though the pandemic has made it challenging to find tenants, investing where you expect things to rebound soon can still be profitable in the long run. Even otherwise, the dealers are in dire need of funds, and if you propose to buy something, they may give you a hefty discount to ensure that you don’t refuse the deal.

At Estate.One, we believe in creating a homebuying experience like no other. We have charted out all the pain points in understanding your requirements and finding a home according to your wishlist. To know more how we can help you find the best home, write to us – connect@estate.one