Buying a home has never been more affordable

Buying a home

Buying a home has never been more affordable

Buying a home

As COVID-19 forces us to adjust to a new normal, Home buying has never been easier we turn to real estate experts for guidance. We consulted with leading Indian real estate experts to determine the best time to buy a home, important factors to consider when buying a home, and insights into the current Indian real estate market. Here’s what they have to say about it.

Best Time to Buy a Home

The current market conditions are ideal for end-users to purchase homes for their own use. Many tenants now regard rent as an unnecessary expense, whereas EMIs are SIPs into a non-volatile asset such as real estate. This general home-buying sentiment is also influenced by the lowest home loan interest rates in decades, which are currently averaging 7.15 percent to 7.8 percent. Simultaneously, property rates at an all low, and many developers are offering additional enticements in the form of attractive payment schemes and offers. In addition, unlike in previous years, buyers can now obtain completely de-risked, ready-to-move-in homes at prices previously reserved for only early-stage under construction properties.

Important Considerations

Buying a home should always be followed by a clear understanding of the purpose of the purchase. If the goal is end-use, it is critical to understand which area (city, neighborhood, and project) best meets their lifestyle requirements. In the case of an investment, one must consider the demographics of an area as well as the potential for growth, which could be driven by upcoming infrastructure projects, commercial growth, or general housing demand. Checking for RERA registration and past projects of the developer should be the first thing potential homebuyers consider when shortlisting a new home. An investor should avoid selecting a project under construction from a developer whose previous projects have been delayed. However, a new home or resale property must also consider connectivity, social amenities, and basic infrastructure.

Government Incentives

In order to promote affordable housing, the Indian government has recently introduced a slew of incentives for first-time home buyers. The government offers subsidies on housing loans to first-time homebuyers and lowers taxes on under-construction homes.


Needless to say, the most important consideration when purchasing a home is the budget. It is based on your income and savings. While income determines what one can afford, one must also consider liquidity requirements for normal spending and contingencies. Magicbricks, for example, has a suite of tools that can help homebuyers understand how much they can afford, what their EMI would be based on a target loan amount, and so on. This assists first-time homebuyers in better understanding the financial requirements. Furthermore, a buffer of 10-20% over budget is advisable for such costs as registration and décor.

Buying vs. Renting

There is no simple formula for answering the buying vs. renting debate because it is based on individual preferences. In broad terms, real estate investment is an investment in a performing asset. The asset either provides a roof over one’s family’s head or can generate rental income and even long-term capital appreciation with patience (given the current market scenario). Today, millennials who previously preferred the ‘Uber’ way of life—buying nothing, renting everything, and either saving or investing money in mutual funds or stocks—are increasingly entering the real estate market as buyers. In the midst of the COVID-19 pandemic, the value of owning a home has become more apparent to them.

Second Homes

Renting is popular among the younger generation who do not have the financial means to purchase a second home. Millennials love to travel to different places, like Alibaug, Pawna, or to a beach house in Goa or further south. Renting a place has its perks, such as being free of commitment, but it still isn’t your home. Those with the time, patience, and passion to visit second homes after retirement often desire second homes. The benefits of this are that it is a family home; for functions and celebrations, you don’t have to waste time looking for another space or paying for it.

COVID-19 Pandemic

The Coronavirus outbreak in India had a variety of effects on the real estate sector. For example, the nationwide lockdown that followed the outbreak resulted in a sudden halt in development work; restrictions on movement hampered sales between March and May 2020, and new launches slowed across cities. We have seen that consumer preference for “ready to move” properties has shifted as a result of market uncertainties. As a result, emerging markets and non-metros suffered less seriously than the country’s top eight metros.

ALSO READ: House Purchase: A Comprehensive Guide

The New Normal

Site visits as we know them have now been replaced by virtual walk-throughs as a result of the Coronavirus pandemic.” Corporate developers and tech-driven brokerages now have a distinct advantage because they can showcase properties online while also completing a significant portion of the transaction process. Customer behavior has changed significantly, with customers spending more time on social media and on property portals. Even as the cost of lead acquisition has decreased, the quality of interactions has improved significantly. Once the pandemic is under control, physical site visits, face-to-face conversations, and transactions will significantly decrease. As the Indian real estate market moves into digitisation, the largest developers and consultancies now have a significant competitive advantage.

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