Should I buy property in the COVID situation?

Property buyers are in dilemma whether to buy a property at this time or to wait for some more time for this pandemic to get over.  Plenty of thoughts are coming in mind. Some of the buyers are postponing, few of them are hurrying and most of the people are still not sure what to do. COVID-19 is really a new situation to everybody in the world. Nobody knows the end of the situation. In this scenario, everyone is more interested to accustom with the new normal system; to live with it. Purchasing a property should not be postponed also; perhaps, this era would be the best time to purchase a property. Let us discuss why-

Launch of new projects are on hold

Developers have stopped launching new projects. So, new inventories are not adding up. Instead, all the developers are interested in selling the old inventory first. So the inventory is getting lesser day by day. If anyone is planning to purchase a property later may get lesser options to select. If new inventory adds up also after few months, the buyer has to wait longer period to get the delivery. So, before the options get lesser, one should decide to purchase now.

Lowest Price Tag

The price is all time low and cannot be compared to normal situation. For disposal the old inventory, developers are offering maximum discount offers and benefits to customers. This time customers are the winners with the price they are getting offered. Lot of lucrative offers includes price discounts, free parking, free interior and many more. Easy payment plan schemes are also placing a property buyer in comfort. A property buyer should not miss this time to get maximum benefits.

Low cost Home Loan

Home Loan rates are lowest in the history. A rate of 7% in an average is been offered by almost every banks. This is the best time to purchase a property with home loan. A good amount of money can be saved from low interest rate.

Government Scheme

The Government extended the Credit Linked Subsidy Scheme (CLSS) for affordable housing for another year up to March 2021. A first time home buyers may opt for Pradhan Mantri Awas Yojana (PMAY) to get a subsidy on home loan interest.

Lower GST

GST has already been decreased to 1% for affordable housing and 5%(without Input Tax credit) for other residential properties. This can also bring the price lower compare to previous pricing.

Future price escalation

This is quite natural that the price is going to be increased after touching an all time low. Once the pandemic period is over, the price may go up. Tomorrow or day after or may be after few months, this period is certainly going to be over and that time, people will be more keen to purchase, new launch of projects will be more after this halt period and many other scenarios may push the price up. So, this would be the best time to invest in real estate. Firstly, a buyer gets a property in lesser price and secondly, after few months or years once the price goes up there will be a good return on investment.

Conclusion

The Covid pandemic situation is not over. We also do not know when it is going to be end. The economy is under pressure. In this situation real estate price is down according to economy and market. A property buyer, who is really planning to buy a property, should not miss this time. These factors which are discussed above say that this time would be the best time to invest in real estate. Use it  to purchase a property in lower cost before the economy goes up and real estate market also goes up. This time can be used and take the maximum advantage out of it. So, a property buyer should not wait for a better time later. Price is not going to fall more in future as it is in the bottom.

When buying a property, buyer should check HIRA registration for project and agent both if purchasing a new property. HIRA would definitely secure buyers interests.

Share this article if you like and find useful.

Written by:

Arnab Ray

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