As we all grapple to come to terms with Covid-19 and the lockdown, a smart real estate investment could be the silver lining you were looking for during this otherwise grim period.
Covid-19 and the resultant lockdown has had us sit at home and re-think our whole existence! Our lives have witnessed a 360 degree turn with homes becoming offices, domestic helps becoming a thing of the past and hugging a dear one becoming a sign of lack of care or compassion!
While there are plenty of lessons to be learnt from this pandemic, one of the most important lesson is the fact that life is very uncertain, and we should be prepared for every situation. This holds true for our finances too and thus our investments. While, it is no secret that real estate is one of the safest and long-term investments, do you realize that this Covid-19 lockdown could prove to be the best time to invest in this asset. Here’s why!
Weaker markets
Due to the negative impact of Covid-19 on the economy, buyer sentiments have been immensely impacted. Due to the looming uncertainty in the job markets, prospective home buyers have pulled back or deferred their purchase decisions. This gives an investor a higher bargaining power to close deals.
Lockdown offers by top developers
This has compelled top notch developers across the country such as Godrej Properties, Rustomjee, Shriram Earth etc to come out with special lock-down offers that you as a prudent investor would not want to miss. From special payment plans to cash discounts to booking a property with just Rs 1 lakh, its all happening.
Developers and property firms have innovated their selling strategies to meet the need of the hour which is online selling. For instance, Square Yards recently launched its online selling platform- book.squareyrds.com-to aid buyers and investors to buy property during this lockdown. With features such as walk-through videos, 3D-images, detailed project reports to name a few, the site is a one-stop solution for you to buy property online.
More stable than stock markets
Probably the worst hit asset due to Covid-19 was the share markets. Stock markets have crashed not just in India but also globally. All seasoned investors know that stock markets are volatile and a high- risk investment as opposed to real estate. It thus makes sense to diversify your investment portfolio and invest in real estate at a time when everything else seems unstable.
Tangible Asset
Apart from being less unstable, real estate is also a long term and tangible asset. it offers capital appreciation if you stay invested for a certain period of time. Market experts believe that even though the real estate sector has already taken a hit due to the pandemic, it is expected to revive soon. Even if you give yourself a period of at least 2-3 years, there are still chances you would end up gaining a higher ROI than any other asset. Not to forget the rental income one can gain if invested in a ready property.
Reduced home loan rates
The Reserve Bank of India (RBI) announced a rate cut in repo rates on March 27th, 2020. The repo rate was reduced from 5.15% to 4.40%, a drop of 75 basis points. This clearly means that banks can now get loans at a lower rate from the RBI. If banks decide to pass on this benefit to the customers, the automatically your home loans rates will come down drastically.
More time to do your research
Last but not the least, as we all our at home following social distancing, we have more time on our hands to do a thorough research. Yes, you cannot go out for site visits, however, developers and brokerage firms have created all types of virtual aids to guide you in your purchase. Utilise your time to visit the properties online and who knows you might just find the deal of your dreams.
Thus, if you have a secure job and a positive capital backup or if you are looking for a long term investment, this could be the right time to put your money in real estate.
