Buying Dream Home: FY-21 is the Best Time !

The Covid-19 pandemic has affected the real estate sector with considerable decline in residential demand due to higher than anticipated slowdown. But this shall not remain for good and I can say with guts based on my observation in this industry since 1994 when I wrote my first best-seller book viz. 'Escort to Flat Property' that this underneath there is a definite need for the housing in India.

If you plan to buy or invest in real estate, perhaps FY21 is the best time to do it with low prices, low stamp duty and all-time low interest rates. Once the dust raised by Covid-19 settles down and the vaccine for the virus becomes available, it is expected that people would come forward to buy and invest in affordable housing units in significant numbers.

Buyers' On-Demand:

The property market has transformed from a seller to a buyers' market as it is estimated that there are over six lac unsold flats and these inventories pilling up has reached a stage for price correction to meet buyers expectation. We already see builders' offering promotional offers like free stamp duty, free GST, free registration ... some builders even go to an extend of providing free modular kitchen and gold coins to attract home buyers.

Lowest Interest Rate:

Today, the housing loan interest rate has fallen to all-time low to 6.75% what used to be in double figures earlier. Thus, it makes sense for salaried class paying hefty rents for houses to rather invest in their own homes as monthly EMI. Thus, this factor is crucial and has become the center of life and could support home values going up forward. This is well supported by Reserve Bank of India in its' last monetary policy who has decided to keep the rates unchanged. This will indeed lead to boost housing demand and should augur well for home buying sentiment.

Government Subsidy and Push:

With a Central subsidy of Rs.2.67 lakh and loans for affordable houses being entitled to credit-linked subsidy scheme, it has made common man's dream-home 'owning' a reality and an attractive proposition. Further to boost this sector, our Finance Minister has increased the fund allocation as much as Rs.18000 Crore for the Prime Minister Awaas Yojana-Urban (PMAY-U) for FY20-21. This in turn will help start construction work at greater scale. Interestingly, Income Tax Act is also considerate as property rate lower than circle rate are been subject to exemption from tax. Added to these positive steps, many State government including Maharashtra has reduced the stamp duty and registration charges. Thus, home buyers has clear advantage of liquidity and alternative avenues for getting funds.

Work from Home (WFH):

Covid-19 triggered norms for Work-from-Home, consequently it has increased residential demand in the suburbs. Earlier, home buyers were researching the best localities to buy a house near their workplace, but today, it has all changed since the Covid-19 pandemics; onset as preference is for a decent interior in their own house in suburbs, rather than proximity to their offices. So, it is a matter of time before laws are crystallized on these trends, nevertheless, 'Work-from-Home' (WFH) has come to stay and many office goers may not have necessity to commute daily to offices or stay on rent at Tier-I, II cities for physically working there.

At this stage, the author is glad to enlighten all his award-winning lifestyle concept he thought and visualized way back in 2010 which projected a 'happy' lifestyle 'AOT Green Realty' (YouTube it). Its' a balance of working life parallel to family life at a place (home-WFH) where you are comfortable, safe and productive along with trending smart home technologies and the art of utilizing renewable energy. Feel free to visit the home page of website: https://sites.google.com/view/smartcityhomein/ and connect with the Founder on sodhajayesh@yahoo.co.uk or Mob/WhatsApp: 9699145959

Copyright: Jayesh Sodha

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