MENU
fav-icon
 
Compare

Top 5 reasons why you are right about buying a home now!

Top 5 Reasons Why You Are Right About Buying A Home Now!

By Lodha 18 December 2020

Homeownership has always been viewed as a matter of prestige in India, as well as it indicates sound financial bearings of a person. Buy a house! is often the advice doled out by the older generation and now we have slowly come to realise that it's not completely unfounded!

COVID-19 has undeniably made us realise the value of having a home for our own. As for months it provided a safe haven for our loved ones and turned into an office, school, theatre and much more! On the other hand, the volatility witnessed in equity market, has driven home the point that investment in real estate offers stability and are a safer bet.

If you are undecided about buying a home, do consider these 5 reasons of why you must act now.

1. Your dream home could cost more in future

Land is a limited resource, while the population will keep growing. Niti Aayog figures estimated the current housing shortage of nearly 25 million, showcasing the vast underlying demand. Increasing urbanisation, growing incomes, and large middle-class households are the combined factors driving demand in the sector. Thus, the undersupply and overdemand situation could lead to higher property costs and limited choice in the future. Considering this and also the fact that real estate is a safer bet than equity in the long term, now is also a good time if you are looking to add real estate in your investment portfolio.

2. Inventory of good ready to move in houses won’t last long

Currently, the real estate market has a good inventory of ready to move in houses in projects by reputed developers. You can truly get your dream home that meets all criteria – location, lifestyle, security, quality and convenience. The construction of many projects was halted due to the lockdown, this may result in delayed delivery of under-construction projects. Additionally, owing to financial uncertainty during the lockdown, many developers may not have the financial wherewithal to complete projects.

A report in MoneyControl quoted Anuj Puri, chairman – ANAROCK Property Consultants, saying that the prices of ready-to-move properties are almost at par with under-construction homes in many areas. This has never happened before - and since developers have curtailed new supply, it is unlikely to happen again. Never have homebuyers had such a tempting choice range, at such low prices, he says.

3. Take advantage of the reduced home loan rates

The home loan rates in India are at a 15 year low after the Reserve Bank of India lowered the repo rate at sub-7% level. Following this, several financial lenders have lowered the home loan rates, with offering rates as low as 6.9%. Cheaper home loan translates into savings for you, which means you can buy a bigger home.

In an interview with Economic Times, Keki Mistry, Vice-Chairman & CEO, HDFC, expressed, “In 40 years of working, I have never seen interest rates for housing loans be sub 7% as they are now.”

4. Its easier now to get higher value home loan

In October 2020, the Reserve Bank of India rationalised risk weights attached to some categories of borrowings above Rs 75 lakhs. This implies that banks would be exposed to lower levels of risk. Hence, they would be more willing to disburse a higher amount of loan.

5. Make most of the limited period of tax benefits

Real estate is among the largest employers in the country, apart from generating direct and indirect employment, it also significantly contributes to the GDP of our nation. Recognising this, the government in order to boost the sector announced measures to encourage people to buy a house. In Maharashtra, the stamp duty has been significantly reduced from 5% to 2% till December 2020 and to 3% until March 2021. Furthermore, the differential between agreement value and circle rate was increased from 10% to 20% (under section 43CA) till June 30, 2021, which is especially beneficial for higher valued homes. The Maharashtra government has also reduced the premiums to be paid by developers by 50% until December 2021.

TAGS

Similar Blog Posts

Buying-Guide

Trends in Real estate 2022...

BY LODHA
01-02-2022

The real estate market saw a fantastic 2021. Rising knowledge about the need for more space, heal

TAGS

Buying-Guide

4 Mistakes To Avoid While Bu...

BY LODHA
15-02-2022

Buying a home is akin to fulfilling a lifelong dream for most people. Since it’s a huge investm

TAGS

Buying-Guide

Things to Look Out for When ...

BY LODHA
10-04-2020

The process of home buying has undergone a sea of change for the better. Today, you will find the

TAGS

Buying-Guide

6 Ways You Can Save Money Fo...

BY LODHA
21-04-2022

Having an own home is a dream of many. It is often considered as a sign of stability. Buying a ho

TAGS

Buying-Guide

What are Homebuyers Looking ...

BY LODHA
12-05-2022

In 2021, the Indian residential sector made a solid comeback, with house sales in the top seven c

TAGS

Buying-Guide

Ready-to-move-in vs. under c...

BY Lodha
04-06-2020

One of the most common dilemma you face when buying a house is whether to invest in a ready-to-mo

TAGS

Residential
Buying-Guide

What Should You Do With The ...

BY LODHA
06-06-2022

<

TAGS

Buying-Guide

Guide for NRIs to invest in ...

BY LODHA
21-07-2022

The Indian real estate industry is expected to grow to a $650 billion business by 2025. This also

TAGS

Buying-Guide

Smart Cities: Digital Transf...

BY Lodha
15-07-2020

World over, there are several cities that are transforming themselves and providing better lives

TAGS

Buying-Guide

Why Should NRI Invest in Rea...

BY LODHA
21-07-2022

Working abroad usually means a great paycheck. A large portion of the paycheck is usually left fo

TAGS

Buying-Guide

Why Invest in Real Estate?...

BY LODHA
29-07-2020

From an asset allocation perspective, experts advise that one should spread out their investments

TAGS

Buying-Guide

Mumbai – top destination f...

BY LODHA
25-08-2022

Mumbai is the capital city of Maharashtra and a city that is the land of dreams. It is known for

TAGS

Buying-Guide

Things to consider when choo...

BY LODHA
07-08-2020

Once you have zeroed in on the property that matches with your preferences of a developer, budget

TAGS

Buying-Guide

The Tax Benefits of Taking a...

BY LODHA
16-09-2022

Owning a house is a dream for almost everyone. And to help people realise this dream, the state a

TAGS

Buying-Guide

Know How to Calculate Home L...

BY LODHA
21-08-2020

Thanks to several government initiatives like reduction in stamp duty and other tax benefits, the

TAGS

Buying-Guide

Why Should NRIs Invest in a ...

BY LODHA
21-09-2022

Indians always preferred investing in real estate, and with the sector in India reclaiming its po

TAGS

Buying-Guide

Your Guide for Buying a Week...

BY LODHA
11-09-2020

Usually located within couple of hours drive from the city, weekend homes are set amidst nature a

TAGS

Living Belmondo
Buying-Guide

THE BEST GIFT THIS FESTIVE S...

BY LODHA
26-09-2022

TAGS

Buying-Guide

Benefits of Buying a Flat in...

BY LODHA
02-11-2022

For many, the idea of buying a flat in the heart of Mumbai is the ultimate fulfilment, but most h

TAGS

Buying-Guide

New GST rates – Explained...

BY Lodha
08-03-2019

The Goods and Services Tax Council has proposed a reduction of the taxes levied on under-construc

TAGS

Commercial
Buying-Guide

6 Reasons why you should inv...

BY LODHA
24-01-2022

Real estate as the name alludes to is “real”. A tangible asset, it provides a sense of stabil

TAGS

Buying-Guide

Lodha - Building A Better Li...

BY Lodha
01-04-2022

We have stringent anti-corruption, anti-bribery and anti-money laundering polices at Lodha. 

TAGS

Buying-Guide

All You Must Know About Avai...

BY LODHA
07-05-2020

Home loan is by far the most common type of loan that’s availed by individual

TAGS

Residential
Buying-Guide

Buying a House Post Covid? 5...

BY Lodha
29-05-2020

The COVID pandemic has brought about sweeping changes in our lives. It has compelled us to view t

TAGS

Buying-Guide

Integrated Township – All ...

BY Lodha
03-07-2020

A well-developed township offers a plethora of advantages – a great community, better quality o

TAGS

Buying-Guide

Why it is Always Better to G...

BY LODHA
23-09-2020

W

TAGS

Buying-Guide

Tips to Repay Your Home Loan...

BY LODHA
03-04-2020

Despite the recent reduction of interest rates on home loans by most banks and NBFCs, the burden

TAGS

Buying-Guide

COVID-19 has Led to the Grow...

BY Lodha
25-11-2020

The 2020 coronavirus pandemic has made nations across the world execute lockdowns and social dist

TAGS

Buying-Guide

Ideal Age To Buy A Home- Sho...

BY Lodha
20-03-2020

Owning a home continues to be a priority for most Indians. However, this is step is generally tak

TAGS

Buying-Guide

Choose A Branded Developer &...

BY LODHA
27-03-2020

Akin to the way brands are preferred while buying utilities, developers who have established as a

TAGS

Services

Property Type

    Location

     

    Configuration(BHK)

      Budget (Approx.)

      Possession