The sturdy grip of coronavirus has increased the volatility of stock markets around the world. Observing the underperformance of funds, there is a growing demand for stable asset classes. Real estate is a major preference of buyers for both self-use and investment purposes.
Home loans at the prevalent rate of interest allow you to create a value-added asset for end-use. With home loan interest rates at a record low, buying a home in COVID times is highly recommended.
Benefits of availing a home loan during COVID
With a buyer’s market and lower interest rates, residential real estate is at its best now. Check out how utilizing a loan for buying a house during the pandemic will be beneficial for you.
Interest rates at a record low
RBI has reduced the repo rate multiple times, leading to the fall in home loan interest rates below 7%. The reduced interest rates will greatly decrease the amount of EMI and the total interest payable. This brings down the total amount of your loan, allowing you considerable savings.
Additional Read: Changes in Home Loan Interest Rates after Coronavirus
Another reason for buying a homeright now is the reasonable price prevailing in the market. The residential prices are as low as they will get and developers are open for a further bargain. So if you are hunting for a good bargain, this is the best time for you.
The uncertainty of demand for non-essential commodities has brought sweet deals to the buyers. In addition to direct discounts, there are complementary offers such as free parking space, low maintenance, easy payment schemes and otherhome-buying benefits.
The present market is a buyer-friendly market with lower prices, better lending ability of banks, lower interest rates and lesser speculative fear. The current tax regime also offers various home loan benefits such as tax deductions and exemptions.
Additional Read: Why Home Loan Market for Millennials is increasing Post COVID
Steady returns from asset
The recent volatility in stock markets has shaken the confidence of investors. The underperformance of funds has yielded lower returns to the investors. However, buying a house can assure you of steady returns in the future. While the rate of interest of your home loan will stay the same even in the recovery period, the value of your asset will rise. This improves your Loan to Value ratio.
The importance of owning a home cannot be overlooked in the aftermath of the pandemic. In the recovery phase, the real estate prices tend to rise and it might again get difficult to buy a house. Moreover, due to the uncertainties, the investors are now looking to increase the weight of real estate investments in their portfolios.
Due to the above mentioned cases, now is the best time to fulfil your dream of buying a house. The benefits of buying a home in this pandemic are more when accompanied with Tata Capital.
Tata Capital is India’s most trustworthy source for instant home loans, providing the best interest rates and a swift process.
Wait no further! Open the door of your new house with Tata Capital.