Are you looking to invest in real estate? If yes, then the right time to invest is just around the corner. Some of the reasons why 2021 might be the best time to buy investment property in India have been discussed below.

The RBI has reduced the repo rate

In the recent past, the RBI slashed the repo rate several times. In May 2020, the RBI announced a 40 BPS cut in the repo rate causing home loan interest rates to drop to a 15-year low. If this trend continues in 2021, which it most likely will, interest rates on house loans will drop even further.

But when it comes to repo-linked housing loans, the lowest home loan interest rates are offered to those applicants whose credit score is in the 750-800 range or higher. Therefore, you should check your credit score, and if it is below 750, you should work on improving it. That way, you will not only get a better loan offer but will also enjoy low EMIs throughout the tenure of the loan.

Additional Read: Factors That Impact Home Loan Interest Rates

Supply and demand factors are affecting the market positively

Compared to financial crises in the past, the real estate sector is not in as bad a shape. The nature of the real estate market has changed significantly since the global financial crisis of 2008. Back then, it was a seller’s market, but now it is a buyer’s market. Also, banks are now in a better position to lend. Moreover, the tax regime is benevolent that benefits developers and end-users alike.

Things are looking up on the demand side as well. The urge or need to own property is fairly high. Why? Presently, the softening of prices has created pent-up demand in the system. This factor is already contributing to low home loan interest rates in 2021, which is automatically raising demand.

Additional Read: Check out how to calculate interest rate on home loan

As the COVID-19 pandemic caused the stock market to plummet, investors lost a tremendous amount of wealth. Investors also lost their confidence in the stock market and turned to real estate instead. They saw real estate as a stable asset class and decided that this was the right time to buy homes for investment purposes. This trend is expected to prevail in 2021 as well.

When it comes to real estate, 2021 is the right time to invest. But what if you don’t have enough funds to spare? You can still buy residential real estate with a home loan from Tata Capital. We provide loans with minimal documentation and flexible repayment options. We have years of experience in the industry and offer dedicated after-sales support.

You can also use our online home loan EMI calculatorto explore different repayment options and choose one that works for you. Get started today and become a proud homeowner.

To gather any information about our loan offering or to check whether you meet our home loan eligibility criteria, visit our website today.

0 CommentsClose Comments

Leave a comment