Is This A Good Time to Buy Property?
India is going through a nationwide lock down due to Covid 19 since March 2020. Everything being a standstill, we are gradually moving towards an economic slowdown. We are unable to gauge the depth of the economic problem till this pandemic is over.
We are getting scared and started re-planning our finances for the year. This is also forcing us to re-think on our decision in buying property. This is a major investment and the decision has to be spot on.
Before you make the choice, we suggest comparing the risks and the benefits involved while buying a property during this period.
Governments are generally forced to lower the interest rates to boost the economy during a recession. Hence it is expected that the interest on Home loans would be lower at this point of time. This means people can afford more loans at same EMI or for same loan amount at lower EMI.
We expect to see aggressive offers from developers to push their product in sluggish property market.
Developers would be more flexible in terms of negotiation as their primary objective will remain to clear as many stocks possible to boost the cash flow.
The resale market will also have more distress properties available at below average prices.
Introduction of financial boosters from the Government at the time of recession may indirectly favour the property buyers.
Stability of job or business at individual level.
Impact on salary or business earning for this financial year.
Allocating fund for initial down payment and also to settle on a safe EMI (or loan amount) to balance the risk factors.
Savings and tenure needed to recover from current financial crisis.
Evaluate the urgency for a new property, especially for end users.
It is important that we strike the right balance so that the deal remains sweet.
So decide wisely.