A house is not just a property, it is also an investment guarantee and offers social security. Everyone desires to have a house of their own, but the increasing cost of living makes buying one a challenge. In these tough times, with the Covid-19 pandemic upending lives and forcing employees to take a salary cut, there's some respite for those planning to buy a house -- the interest rates are almost at their lowest in recent times. This means a low EMI or low outgo of money every month for those planning to take loans now.
Apart from a low EMI, there are several other factors that we should take into account to analyse whether this is the best time to invest in property. Let's see what these factors are.
1. Fixed vs Floating Rates
Borrowers usually go for floating rates because they leave room for the possibility of interest rates going down in the future. With the rates very low, they can now opt for a fixed rate of interest for their home loan.
2. Offers Aplenty
In addition to the interest rate-linked benefits, many lenders are offering attractive packages and schemes to attract borrowers, like dropping loan processing fees or clubbing it with gifts. Moreover, real-estate developers are offering rebates such as EMI holidays, absorption of stamp duties and furnishing at no extra cost.
When the pandemic began last year, the government promptly announced measures like the National Infrastructure Pipeline and extended the benefits of Pradhan Mantri Awas Yojana (PMAY) for the EWS category to meet the challenge faced by the real-estate sector. The 'Housing for All' by 2022 mission is also providing a conducive environment to borrowers.
4. Investment Destination
Given the volatile nature of stock markets and the fluctuating prices of gold and other precious metals, investing in property appears to be a more trustworthy option. These benefits, including a low-interest rate, have made an investment in property an attractive proposition. Also, the current market situation suggests that this is predominantly a buyers market.