As the whole world is fighting the Coronavirus pandemic and businesses are struggling to keep afloat, there is uncertainty all around, be it in terms of jobs, dividends, stocks, or finances. Likewise, the economic imbalance has also affected homebuyers and investors who were ready to make a real estate investment just before the disease started spreading at a fatal rate. So, the question is whether you should buy a home during COVID – 19. Let’s find out.
Low Lending Rates
The RBI has recently announced a repo rate cut, that will bring down the interest rates on home loans. As a result, most banks launched new home loan products linked to the repo rate revision. Currently, the repo rate stands at 4.4%, which is the lowest ever. This is the perfect time for homebuyers who have sufficient funds to invest in that dream flat for sale in Kochi and to get a home loan approved before the rates are increased again.
Chance for Negotiations
This is a time when builders and property agents are eager to clear the inventory to resume cash flow. Most of them are also offering attractive discounts like a refund on booking amount to lure investors. Therefore, this is the right time to invest in the luxury flats in Kochi and secure a good deal for yourselves.
Demand – Supply Slowdown
As the pandemic has created an economic slowdown, the demand for homes has diminished. Besides, there are hardly any new product offerings by builders and developers. As discussed above, this is a great opportunity for homebuyers who have sufficient funds to own a home at a decent price.
Expect Project Delays
With the whole country under lockdown, and construction workers returning home, project delays are imminent. The real estate sector that has always been struggling with regulatory changes and low sales is now facing project delay issues.
With almost no sales happening in any sector, liquidity can be a major issue you will face. Most investors and businessmen are struggling to pick up their pace once the lockdown ends. Investors should have to wait until the money starts flowing in gradually.
As a matter of fact, it is not just India that is facing an economic crisis. Most of the countries in the world have been impacted due to the pandemic. With these large economies facing turmoil, the Indian economy that is dependent on foreign investments and equity funding will suffer.