It is no secret that the coronavirus pandemic has disrupted the housing market to a great extent. And, the Indian real estate sector, which was already experiencing a shortage of growth, was hit the hardest.
Moreover, the would-be homeowners had to pause their plans to avail of housing finance to purchase a property. However, the home loan market is slowly picking up, and the coming year might be the best time to invest.
As a real estate recovery is in the cards, 2021 promises to be the best time to make a home purchase in India. Although the builders, who have been reeling from an economic slowdown since the last few years seem reluctant to drop prices, other external factors have come into play to ensure a quick market recovery from the pandemic.
Are you looking for a home buying guide in India? Here are some of the reasons why purchasing real estate in 2021 could be the best bet for aspiring homeowners.
Additional Read: Home Buying Guide: For Buying a House in Top Indian Cities
Financial analysts have predicted that the interest rates at which one can avail housing finance will experience a significant drop in 2021. Although housing prices might increase, the home loan interest rates will be at an all-time low, making this a favourable period to lock the offer.
Moreover, for those who have a stable income, job security and fit the home loan eligibilityset by their preferred financial institution, 2021 will fare well for prospective home buying. To boost customer sentiment, the RBI has also reduced their Repo Rate to just 4%.
To pick up the pace of the economy, the government has also intervened in the real estate sector and made provisions for buyers and sellers. The Finance Ministry has introduced measures such as tax reliefs so that people can buy a house in India without hesitating.
The Finance Minister has increased the differential between circle rate and market rate to 20% from the earlier 10%. This will provide an immense income tax relief to customers, who can buy a home at a 20% lower circle rate without attracting tax. It will also provide a significant improvement in home loan rates.
How to make the right choice?
The post-COVID housing market is likely to experience a drop in rates, much to the benefit of prospective home buyers. Thus, they should carefully consider the principal aspects and make a practical decision.
Additional Read: Five Real Estate Rules All Home Buyers Must Know
If you have decided to take the big leap and purchase your own home in 2021, then Tata Capital is the lender you need to get lucrative financing options. When taking a loan, use the home loan EMI calculator to get accurate EMI forecasts and choose from standard or Flexi EMI options.
Further, Tata Capital’s home loan eligibility calculator is highly beneficial in calculating the loan amount you are eligible for. Visit Tata Capital’s website today and finance your move into your dream home today!