In COVID-19 pandemic should one consider a property investment?. While the obvious answer seems to be ‘no’, there are many upsides to investing in a real estate asset right now.
TS-RERA Licensed Real Estate Agent in Hyderabad
Countries across the world are busy fighting the Corona virus pandemic. While, businesses are struggling to keep their workforce afloat. Uncertainty is widespread, in terms of jobs, career, finances, dividends, stocks or bonuses. However, this has also affected home buyers. Including, investors who were considering real estate investment before the disease started spreading. In addition, the lock down has brought economic activity to a standstill. Therefore, affecting consumption and income. Amidst all this, should one consider a property investment? While, the obvious answer seems to be ‘no’, there are many upsides to investing in a tangible asset right now.
Benefits of investing in real estate during the COVID-19 pandemic
Benefits of investing in real estate during the COVID-19 pandemic
- Lending rates are at their lowest
The Reserve Bank of India had announced a cut in the repo rate, which will bring down home loan interest rates, as most of the banks have launched repo-rate linked home loan products. At present, the repo rate stands at 4.4%, the lowest ever. For those who have sufficient liquidity to invest, this could be a perfect time to strike a deal and get your home loan approved before things get back to normal.
- Possible negotiations
Builders and property agents are desperate to clear their inventory, to generate liquidity and resume cash flows. Some of the builders are also offering refundable booking amounts, to lure home buyers. So, this can be a good time for you to negotiate a deal with your developer/agent. If you have already visited the property before the lock down, you are in a position to make a decision when it comes to a ready-to-move project. For under-construction property, you can take a video walk-through or a 3D tour of the sample apartment. Also, understand the location advantages, neighborhood, amenities and facilities available around the project. Factor in the final price, only after taking a realistic approach and assuming that project delivery will be delayed.
- Demand-supply slowdown
Demand has dried down and new supply is no more entering the market, due to the lock down. Once everything gets back to normal, it will take at least a month for real estate construction to gain pace. “Once the lock down gets lifted, it will take time for developers to resume construction work, as most of the laborers have left for their home towns.
- Real estate is the perfect asset class
Real estate is certainly a safe bet for investors and their interest is far from over. Real estate will prove to be the perfect asset class in terms of both, regular income as also capital value appreciation. Once the lock down is over, experts expect higher returns from the market, which certainly makes this a perfect time for investors to sign the deal.
