Home-buying in 2021 has become a mandate with the increasing work-from-home scenario. Working from the comfort of your home is what the millennials are looking for. Affordable yet modern homes are the most in-demand.
Now you must be wondering, with the pandemic and increased cost of living, is 2021 a good year to buy a house? Let us make this very clear that the right time to buy a house is ALWAYS and whenever you want to own a place.
With the current pandemic scenario, the real estate sector has slowed down only to leap further and faster. The home-buying sector has increased its sales post-pandemic and this has led to high demand for houses, both apartments, and gated communities. The more the work-from-home scenario continues, the more the demand is going to be. This calls for an open policy and framework that will make home-buying much easier than it already is.
Here are some reasons why buying property in 2021 is the best decision you will ever make.
1. Ease in Home Prices
As per the Housing Price Index 2021 released by the RBI, house prices have fallen by 1% in Q3 of 2020. Since then the prices have eased or haven’t changed at all. This has increased the demand among working professionals. The major cities where the investments have risen are Bengaluru, Pune, Hyderabad, and Chennai.
But buying a home in 2021 in the tier-II and tier-III cities has its own benefits. With the prices consistently dropping, the demand for houses in the suburban areas around the cities has increased. However, many realtors are serving on a first-come-first-serve basis with the demand too high to handle.
Tier-II and tier-II cities like Visakhapatnam and Vijayawada are really lucrative locations to invest in a home. 2BHK apartments in Visakhapatnam are now affordable and covered with all amenities that are equivalent to the 2BHK apartments in Hyderabad and other major cities.
Buying a house in 2021 has become more transparent and hassle-free with the new acts like RERA coming into play. With the acts and laws now increasing transparency, the realtors are also benefitting from the increased demand.
2. Home Loan Rates at a 15-year Low
With the bankers interested in providing loans for more approachability, the home loan has become a simpler process than ever. All you have to do is to keep your credit profile credible. Here’s a link to our previous blog on the Importance of Credit Score for Home Loans.
With home loan rates consistently low for the 14th time, there is a possibility they might drop further. Here’s your chance to become a homeowner this year. This is the best time to buy a house in 2021 and there’s no doubt about it.
3. Decrease in RBIs Repo Rate
The Reserve Bank of India lends money to banks when there is a shortage of funds on the basis of the repo rate.
RBIs Repo Rate is what determines the bankers’ decision on home loan interest rates. This has consistently been dropping and this year too it dropped by 115 base points to support the slumping economy. This is in addition to the 135 base points drop in 2019.
When the repo rate is decreased, banks are allowed to pass some benefits in the form of home loans. This means a possible drop in the EMIs. Lower EMIs are more likely to attract homebuyers. So for those who are looking for an opportunity to avail a home loan now is a better time to apply for one.
Additionally, a reduced repo rate also reduces the funding costs faced by developers resulting in more projects by them. More projects mean more options for you to choose your home from.
4. Incentives for Home-buyers
· Post-pandemic, property values are at more realistic levels
· Mortgage and Home Loan interest rates are at an all-time low
· Relatively low stamp duties in some states like Maharashtra
· Flexible payment schemes
· GST and stamp duty waiver on home-buying
· The slump in registration charges
· Cost-saving incentives by realtors and builders
Home-buying in 2021 is lucrative for those looking to buy one for a long time. Now you have the reasons to book your own flat at your preferred locations. Enjoy that perfect cup of coffee in your own 3BHK apartment in Vizag with a view of the beach or the hills. Your own home bought in the most cost-effective manner is going to last forever. This is going to be the best decision you’ve made ever.
5. Remote Work is going to continue
Don’t you want to buy a home in 2021 and settle down once and for all enjoying the comfort of your own home? Who doesn’t want that, right?
The ongoing strain of the virus is calling for more remote work routines. Work from home has several benefits, for both the employees and employers. Here are some key advantages of working from home:
· Flexibility in work timings, i.e., you get to manage your time.
· Saves travel budget and no more travel fatigue!
· No more missing out on home-cooked food.
· You can personalize your workspace according to your comfort.
Work from home is not only beneficial for employees but also for employers. It reduces the cost of infrastructure and absenteeism. So it is no surprise that employers want their employees to continue their work from home.
In such circumstances, having a home that you can call your own plays a positive role. You get to create your own workspace and make it as comfortable as you see fit. You get to enjoy your home and your work at the same time. This also boosts your productivity.
You can now work and spend some quality time with your family. And what’s better than doing it all in your own home?
However, there are some important measures that you should take before buying a home. Here are the steps you need to take and the thoughts you need to think about buying a home.
Ø Deciding on a budget is the first and foremost step as you need to understand your affordability according to your repayment capacity.
Ø Check your credit score and make sure you are eligible to avail a home loan
Ø Get pre-approved for a home loan. There are many professionals who will assist you to get pre-approved.
Ø Find out which bank provides the lowest and most competitive interest rates.
Ø Consult an Expert and never lose out on the best deals.
Ø Then comes the most important decision of identifying the right property at the location you prefer.
Ø After you select the property, document verification is the next step.
Ø Make sure all the property-related documents are verified and the credentials of the builder or realtor also need to be verified.
Ø Understand the possession policy if it is in the plan approval stages.
Ø Check all the amenities and verify the documents thoroughly if it is a ready-to-move-in property.
Ø Understand and read the documents and agreements carefully and find out about any hidden or extra charges.
Ø The final step is to register the property in your name and you are a homeowner.
Home-buying in 2021 is now simple and easy. It is your turn to become a home-buyer now. Happy home-buying!!