As goes the saying ‘There is no place like home’ & ‘Home isn’t a place, it’s a feeling’– How true it is!! All of us agree to this after spending a long period in our homes during the lockdown. A home is a feeling and it gives a sense of ownership.
1.Grievances of 2020 :
Life had taken us to the phase of demolition during 2020. The devastation had almost reached the zenith. It was the black phase of life which had a lot of bitterness and grievances. People were in lockdown and faced a harsh life. Job losses and salary cuts had become a part of life. Then life started taking baby steps when the trend of work from home barged in along with online classes for children. The worst part of life was the expenses and the most troublesome was the rent which was to be paid for every month. It was this moment that had pulled out the urge of owning a home. Till then, a major working sector supported rental houses as they were able to lead an upscale life without having any responsibility on their shoulders. Those who were single shared apartments and paid less rent. But with the pandemic, all these arrangements were whacked. Social distancing was out of site in shared apartments. This was the time when people realized the importance of their own home and yearned to have one.
2.Lowest Home Loan Rates :
As home loan interests are the lowest with most banks offering below 7% , the chances of further correction are very narrow. This is the best time to grab the offer and fulfil the dream of owning a house. In future also the reduction rates may be low because it is an accommodative stance to pull up the pandemic hit economy to its feet. Rural demand is on the path of recovery and the urban sector is also gaining momentum. This will support the real estate in its revival. The policy support by the government is also laudable as it will support the construction activity in the coming months and also hold up the residential sector. Real estate started its path to revival as people are taking advantage of the low-interest rates. Most Banks have brought down home loan interest to 7% but there are a few who are currently offering a home loan at 6% interest also. Real estate sector has started reaping rewards due to the various steps taken by the government and low home-loan interest rates offered by the banks.
3.Repo Rate to continue low :
As green shoots of recovery are evident after a long term of pandemic turmoil, RBI decided on 4th December 2020, to leave the repo rate unchanged at 4% though inflation and economic contraction is still prevailing. This was done to support the consumers who are really keen in buying a house. This is an accommodative stand of monetary policy which will prolong till required, maybe even in the New Year, to revive the growth of the real estate sector. Repo rate is the rate at which the Reserve Bank lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. When RBI reduces the repo rate it means that the banks have to lower their interest rates that are charged on loans. In other words, the loan offered to the customers has lesser interest thus decreasing the EMI on home loans. As this is a good opportunity to take a home loan at the lowest rates, one should really grab the offer before it is too late.
4.Hit the Iron When it is Hot :
Opportunities rarely knock at the door but when it knocks you should be the first one to welcome it and make use of it. Such an opportunity is the chance of owning a home. Though it came after the turmoil of the pandemic, a chance is after all a chance and this is an affordable one. The lowest interest rates are expected to continue for another six to twelve months and this is the best time to hit the iron when it is hot. It means one should utilize this moment as this is the best home buying opportunity that has come after many years. The lowest interest period will continue for a few more months giving the potential home buyers an elegant chance to own a house. The home loan rates have been the lowest with the help of the government and some of the developers have also been offering incentives to lure the buyers. When can such an opportunity be given again! Life doesn’t repeat opportunities – so, just grab it.
5.Additional Benefits :
When the home loan rates are the lowest, then one can give a try to own a home. Buying a home is also an investment in real estate. The best investment option among all the investments is the real estate investment as it comes with almost no risk. It is a tangible asset and anyone can invest in real estate. It does not require any special skills. An investment in real estate comes to the rescue of the owner in hard times. Real estate investments bring handsome returns, as the prices increase over years. Not only handsome returns, but a tangible asset in the form of a property can also be rented out if one does not want to live in it. In times of distress, it can also turn out to be financial help. So it can be concluded that real estate investment has additional benefits too. This is an opportunity where the home loan rates are at the lowest and one should grab it and utilise to the fullest.
6.Best Time To Grab :
Conversely, there was a ray of hope in the gloomy atmosphere for those who were yearning to own a home. As a supporting initiative by the government, Home loan interest rates have touched a historical low. RBI’s revised monetary policy to boost economic growth in the country also helped the real estate sector to revive. It also gave people a chance to own a home at lowest home loan rates. Grab it at the earliest and own a home of your dreams. Amidst all the darkness, there appeared a ray of hope for those who really wished to own a home. It is once in a lifetime moment for aspiring home buyers. Owning a home is a big financial commitment and in the present scenario where the home loan interest rates are at the lowest, this is primarily the buyer’s market. One can invest at easy rates and fulfill the dream of owning a house. The buyers can pounce on the attractive deals. A low-interest rate will reduce the interest paid on the loan as well as the monthly EMI load. This is the best time to grab the chance of owning a house. An own house is a matter of pride. It gives a sense of safety and security to the entire family. This type of security can only be provided by investing in real estate.
Written by Nikhil Gattu
