Significant factors of having a house in the aftermath of Covid-19!

Opportunities don’t come hitting on your door very usually! Nevertheless, when they do, you’ve got to be attentive to optimise it to the fullest. The outcome of the Covid-19 pandemic situation has confirmed the fact that having a home is way better than trading with the uncertainties of existing in rented accommodation. People also understand the significance of having real estate, as an asset class in their investment bucket, as a more stable option allowing steady returns connected to the highly unpredictable stock market that comes with intensified opportunities.

Let us run through some key factors-

High Tangible Asset Value: Real estate is not paper money; being tangible & which enhances its security and return on investment.

Attractive and Constant Income Return: The rental yield from real estate is much higher than returns on any direct sources of investment. Commercial investment can yield up to 12% ROI and lowest to 5% ROI, including the capital appreciation depending upon the construction stage and contract terms of the property.

Tackling Inflation-

 The build-up capability of real estate originates from the positive relationship of GDP growth and demand for real estate. As economies expand, the need for real estate drives rents higher and transforms into higher capital values.

Demand-Supply Gap:
The reduced demand in the sector currently has led to the generation of various attractive deals and offers by Developers with lucrative payment plans to fetch customers. Once the Economic condition would start improving, the demand graph would start floating upwards, which will thereby increase the price of the property and will no more be like the lockdown phase. So strike the iron when it’s hot.

RBI Highlights to ease liquidity-

-The term loan on EMI’s has been put on hold.

-There is a significant price surge expected, post the lockdown, which will ensure a confirmed profitable ROI.

-RBI reduces the home interest rate by trimming the REPO rate by 75 BSP. This will expedite and promote bank credit flows towards the besieged sector in this pandemic. (Source- Economic Times)

-This motility by the Indian central bank has made home loans significantly winning presenting potential home buyers with a possibility that cannot be missed.

It’s undoubtedly good news for those seeking a life purpose to own a home, more so for those anticipating for the right time to leap. The home loans at prevailing interest rates supported for essential savings while building an asset for end-use or loan purpose. Moreover, the borrower gets to use the savings resulting from a reduced equated monthly instalment to avail a top-up loan, also accessible at lower interest rates. The additional funds can be used for undertaking interiors related work for the apartment being purchased. Alternatively, a lower interest rate also gives borrowers an option to raise a higher amount of loan. This helps widen the choice in terms of a bigger home with better amenities and lifestyle facilities in a great neighbourhood. 

Another benefit of the current home loan interest rate scenario is that a borrower can look at the possibility of going for a fixed rate over a floating one. The latter tends to get unstable and can go north based on fiscal policy decisions by the Indian central bank. Banks and other financial institutions typically charge a premium for home loans at fixed rates. So, this option is best availed when overall interest rates are at their lowest.

Buying an apartment is the most expensive financial responsibility that an individual makes in his life. Keeping the total acquisition cost, the mid-segment and affordable housing divisions have emerged as the most sought option for potential buyers. A chance, in the form of lowest home loan interest rates, is now available. Go ahead, make its best use and accomplish your life dream!

About S.G. ESTATES PVT LTD (Formerly known as SG Estates Ltd)-

Under the aegis of Mr Subhash Gupta, SG Estates has registered its presence in North India significantly in Delhi/NCR since 1986. The organisation delivered a series of housing projects under SG Impressions, erected SG Impressions Vasundhara, SG Impressions Dehradun, SG Impressions 58 and SG Impressions Plus. The projects have been completed and happily delivered to the customers. Currently, SG Oasis in Vasundhara, SG Benefit in Govindpuram, SG Grand Phase 1 in Rajnagar Extension, in Ghaziabad has been successfully delivered. SG Grand Phase 2 and SG Shikhar Height are the two on-going projects located in the prime regions of Ghaziabad at Rajnagar Extension and Siddharth Vihar.

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