Buying a Home During Covid-19 in Lucknow
Lucknow is developing at a rapid pace. All the major developers of North India are eyeing Lucknow as a very lucrative market. City’s growing infrastructure and facilities are improving and therefore people are attracted to Lucknow like never before.
Buying a home in this pandemic is beneficial if you find a home that seems right for you, you have job stability and if you can get financing at historically low rates then buying a home might be a wise choice and the right thing to do even now.
The same story is true for someone who wants to buy a property in Lucknow. The pandemic crisis gave investors a unique opportunity to scoop up properties at extremely low prices and finance them with historically low interest rates.
It’s a difficult to time for the real estate market. For decades, it was understood that you could safely place your money into a home, sit back, and watch your home’s value go up.
While there are plenty of lessons to be learnt from this pandemic, one of the most important lesson is the fact that life is very changeable, and we should be ready to fight with every situation. This holds true for our finances too and thus our investments. While, it is no secret that real estate is one of the safest and long-term investments, do you understand that this Covid-19 lockdown could prove to be the best time to invest in this asset. Here’s why!
- Buyer sentiments have been immensely impacted due to the negative impact of Covid-19 on the economy. The looming uncertainty in the job markets, prospective home buyers have pulled back or deferred their purchase decisions. This gives an investor a higher negotiating power to close deals.
- This has squeezed top notch developers across the country such as Godrej Properties, Bhutani, Shriram Earth etc come out with special lockdown offers that you as a prudent investor would not want to miss. With the special payment plans of cash discounts to booking a property with just Rs 1 lakh, it’s all happening.
- Apart from being less unstable, real estate is also a long term and tangible asset. It offers capital appreciation if you stay invested for a certain period of time. Market experts believe that even though the real estate sector has already taken a hit due to the pandemic, it is expected to revive soon. Even if you give yourself a period of at least 2-3 years, there are still chances you would end up gaining a higher ROI than any other asset. Not to forget the rental income one can gain if invested in a ready property.
- Probably the worst hit asset due to Covid-19 was the share markets. basically, investors have been pulling their money out of stocks. This causes the price of the bonds to go up and about their yield to go downward. Stock markets have crashed not just in India but also globally. All seasoned investors know that stock markets are volatile and a high- risk investment as opposed to real estate. It thus makes sense to diversify your investment portfolio and invest in real estate at a time when everything else seems unstable.
- The Reserve Bank of India (RBI) announced a rate cut in repo rates. The repo rate was reduced from 4.40% to 3.75%, a drop of 25 basis points. This clearly means that banks can now get loans at a lower rate from the RBI. If banks decide to pass on this benefit to the customers, the automatically your home loans rates will come down drastically.
- As we all our at home following social distancing, we have more time on our hands to do a thorough research. You cannot go out for site visits; however, developers and brokerage firms have created all types of virtual aids to guide you in your purchase. Utilize your time to visit the properties online and who knows you might just find the deal of your dreams.
If you have a secure job and a positive capital backup or if you are looking for a long-term investment, this could be the right time to put your money in real estate. Lockdown have had us sit at home and re-think our whole existence!