The festive season has traditionally been an auspicious time for making a big-ticket purchase or an important investment. This time of the year meant a rise in business activity. Not only the customers but also the manufacturers and the sellers would seek to make the best deals.
The Covid-19 pandemic, however, has dealt a blow to economic activity across the world. Holding back on investment and purchase is a common site post the virus outbreak but there is a silver lining when it comes to buying a house.
Several experts would agree that this is the right time to buy property as the prevailing interest rates which are at an all-time low. With a recovery in business sentiment, the rates may go up in the future and property prices may surge again.
Besides, the survey reports suggest that the property prices, especially in metros dropped significantly ever since the lockdown was imposed in March. Thus, these prices make it the good time to buy a house.
Another painful reality of the post-Covid-19 property market is that a lot of repossessed properties may make their way back to the market after the loan moratorium ends in September. It must be noted that the loan moratorium which was implemented to help borrowers tide over the Covid-19 crises, was extended till September 28 by the Supreme Court.
In case a borrower defaults on loan repayments, the lender seizes (or repossesses) the property. These properties are then auctioned off to recover the outstanding loan amount. It is news for the people who are looking to buy a new house this festive season that the prices in an auction, usually, are 20-30 per cent lower than the prevailing market rates.
However, you must be aware that the auctioned properties are often embroiled in legal disputes or have unpaid bills and loans against them. After it is bought in an auction, the buyers may have to bear these expenses and settle the outstanding dues. Therefore, buyers should be cautious and have a sense of the real price of the property.
Property as investment
With massive volatility in the security market, some have even turned to invest in property.
It is one instrument that is understood to retain its value even during a downturn. Property experts suggest such an investment during the current market scenario (with an 8-10 year horizon) could prove to be a smart bet making it the right time to buy property. To buy a property as investment, many young professionals are relying on easy home loan from renowned financial institutions. These home loans are easy to apply, quickly to be disbursed and have flexible repayment options according to your needs.
Conclusion: The post-COVID-19 world is uncertain and there are very few investments that may not be at the risk of losing value, and the property is one of them. Both from the investment point of view or for the purpose of personal use, it is the right time to buy a house during this festive season since the interest rates, as well as the price tag on houses, are relatively low. You can avail a home loan from a reliable home loan provider to purchase your dream home in the festive season. You can look up for home loan EMI calculator online so as to plan your purchase well.