Is it a Good Time to Buy a House in 2021?

Estimated read time 3 min read

Real estate has always been, and still is, one of the safest investment options out there. Plus, now, with the post-pandemic scenario of work-from-home setup, most individuals have plenty of spare time on their hands to rethink their investment decisions. However, the question of the hour is – Is it too late to purchase a property now, or is 2021 still a good time to invest in real estate? Let’s find out.

Reason#1 Property prices are at their lowest

Buying a property is perhaps the biggest investments you’ll make in life. However, post-pandemic, for new homes 2021, property builders and developers are offering massive discounts and offers in order to boost real estate sales. On top of that, serious home-buyers can negotiate the final price like never before. If you buy a house in 2021, you can at least be assured that you’re not paying a ridiculously inflated price.

Reason#2 Some cities will witness greater demand than the others

As the work-from-home culture takes centre stage, the best place to buy a house increasingly becomes tier 2 and tier 3 cities. From ready-to-move-in to under-construction properties, people are rapidly investing in real estate in these cities to make their work-from-home a more comfortable experience. Plus, the law is well-known – the higher the demand, the lower will be the price. Now is the time to invest in real estate!

Reason#3 Stamp duty cuts

Back in August 2020, the Maharashtra Government declared a deduction of stamp duty charges in order to boost public interest in real estate. Some other states, such as Karnataka, followed suit. Low property prices coupled with reduced stamp duties, could you ask for anything better? But wait, there’s more to come!

Reason#4 Low interest rates

The Reserve Bank of India (RBI) had earlier announced a three-month moratorium period to give housing loan borrowers some respite. However, the 40 BPS repo rate cut has currently brought homeloan interest rates so low; they’re the lowest they’ve ever been in the past 15 years! Who wouldn’t want to leverage such an opportunity – now is the ideal time to invest in real estate.

Here’s what you must ensure from your end

Your apprehensions regarding home purchase are rational. However, there are some things you can ensure from your end before you go looking for your desired property, as given below.

  • Invest in real estate only if you have a steady source of income
  • Make sure that your employment status (in case of a salaried individual) and business status (in case of a self-employed individual) is stable
  • You must have a good credit score to get a good home loan offer, preferably 750 and above
  • Ensure that you have considered the entire cost of getting a housing loan, which includes the downpayment, processing fees, and other associated costs

Purchasing a house in 2021 is worth it! However, before applying for a loan, check your repayment capacity beforehand using a home loan EMI calculator and compare lenders for competitive interest rates.

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