Festivities in India have already commenced with Navratra and these are all auspicious occasions to make big-ticket purchases including real estate. And now there are a couple of reasons that can tempt you to take the much-awaited call on buying your dream home which indeed has the potential to offer you that psychological and emotional security during such stressed times. Here is the discussion on the same:
1. Home loan rates are at an all time low:
In decades the home loan interest rate hasn't been this low as they are currently, Union Bank is currently offering the lowest rates starting 6.7 percent. Notably this is for loan amount up to Rs. 30 lakh and for a maximum tenure of 30 years.
One of the reasons for sharp plunge in loan rates in last one year is that interest rates on retail loan are now, as per RBI's mandate released last year, are pegged to EBR which for most bank is repo rate. And given the turmoil in the economy, RBI course-corrected this key policy rate steeply and in similar proportion, rates on loan also came down.
And as revealed in a survey nearly 2/3rd of potential home buyers are assessing the interest rate situation and other look-outs, but interest rates are unlikely to fall further beyond and hence betting on the right deal will make much sense now than later.
2. Festive season adds to the attractiveness as lenders unveil compelling offers on various loan products including home loan
To spur demand in the realty sector, banks as well as realty developers and property brokers are coming up with good enough offers. Say for instance SBI has waived processing fee on all loans applied via Yono app. Further such customers will also be eligible for availing a rebate on interest rate of 0.05%. Also to add to this, basis the customer's credit score, he or she can avail additional concession of 0.1 percent.
Similar offers are on offer by private sector lenders like HDFC Bank and ICICI Bank with interest rate on home loan from 6.9%.
3. Low real estate pricing
Indian real estate market was suffering even before the pandemic recording very slow growth and in the aftermath of Covid pandemic the situation has only been exacerbated. Now at the current point in time, if experts are to go by, prices have bottomed out and any further price correction is ruled out. And if at all that is experienced it shall be due to further deepening of stress in the economy. So, for now prices of real estate are expected to remain steady for some time.
4. Innovative festive treats being rolled out by property developers
As developers in the industry are sitting on a huge inventory, they are nudged to come up with innovative offers in such dull times when new launches have taken a hit and offers on ready to move in segment is likely to give it an impetus. Offers being extended by developers to lure buyers include flexible payment options, cash discounts, GST and stamp duty waivers, property swap options, free maintenance as well as accessories.
Companies like Tata Housing have asked for a flat interest payment @ 3.99% for one year and the remaining shall be borne by it.
So, this said apart from low home loan rates, festive offers, low pricing on real estate you can also leverage this aspect basis your overall requirement.
5. PMAY Benefit
You certainly should make use of this government run scheme which has the vision of housing for all. And now the affordable housing CLSS is available till March 31, 2021 so better secure subsidized loan rates. Herein the interest subsidy is up to the maximum of 4 percent.
So, all these factors need homebuyers' strict attention as such multitude of offerings and that too at the same time shall be hard to secure in future course of time. Plus buying into property for investment purpose is always welcome as it introduces additional income avenue such as through rentals or may be capital appreciation over a time period. Therefore, property buyers get going and choose the right location, developer etc. for buying property and don't get into further waiting and watching.