A buyer is always in two minds whether this is the best time to buy a property or not. They keep tabs on market trends & try to make a timely decision to close the deal. If you are planning to buy a flat this is the best time to buy a property, because of the various reasons. A buyer needs to take into consideration those factors before purchasing a property.
The Real Estate sector currently going through a slump period due to Covid-19. Developers are facing fund issue, the market is having less liquidity now. The unemployment rate & salary cuts are the common few things going on. But the research shows the real estate market scenario will change within a few months.
The real estate will be back to normalcy sooner or later. The crisis situation in the economy is temporary. We have to Keep in mind “Home is permanent, everything else is temporary”. If you are thinking about property purchase then this is the best time to buy a property & start thinking in a Constructive way & proceed towards the purchase of your dream home. At the current situation, unmatched benefits make “now” the best time to buy a property no question in that at all.
The main reasons which are making this the best time to buy a property are as follows:
a) Maximum developers are giving various offers & discount
All top developers like Siddha, Merlin, Diamond, Signum Group, etc announcing their offers & benefits via online & offline mode quite frequently focusing this is the best time to buy property thus if the customers book within that stipulated time frame they can avail of those benefits & offers.
b) PMAY scheme extended
PMAY (Pradhan Mantri Awas Yojana) scheme launched on 25th June 2015 launched by the Govt of India to boost the affordability of houses against the inflated real estate sector. Under this scheme, the maximum interest subsidy that can be availed by a buyer is 2.67 Lakhs(approx). This scheme has been extended until Mar 31, 2021.
C) Tax benefits on home loans
Taking a home loan offers good benefits under the Income Tax Act on principal & interest payment. What’s more, the buyer can also claim interest paid on a housing loan up to rs.3.5 lakh as a deduction from gross total income.
d) Low interest on home loans
Home loan rates have never been lower & can only rise from here. This means lesser EMI & higher loan capacity which, in turn, means you can buy a 2 BHK instead of a planned 1 BHK if you so want.
So, all the above points show ultimately the buyer enjoys a lot of gain from a financial point of view if they can transact in the ‘best time to buy a property”.
But before entering into a deal with the developer, the buyer must take into consideration the following factors:
Understanding the price trend
The buyer must do research regarding the market price of a property in that specific area to make himself confirm the price the developer is asking from him.
Appreciation rate of the property
The buyer should evaluate the appreciation rate of the property & must confirm that he can expect to gain substantially more profit if he sells that property in the future mainly because of the reason he is doing the deal at the best time to buy a property.
Gather the rental value of the area
To gather in-depth knowledge of the market the buyer can collect the rental value of the property in that specific area. Also, it helps to identify the ROI (Return on investment) on that property. The 2% rule in real estate is a rule of thumb in general which suggests that a rental property is a good investment if the monthly rental income is equal to or higher than 2% of the investment property price. The buyer can confirm that this is the best time to buy a property if its ROI is more than at least 2%.
Talk to people to gather information
If possible, try to communicate with people who had recently bought a property in that area to gather pros & coins of that area. It also helps to identify the key features of the area.
Go for a credible developer
The buyer should always give preference to buying property from reputed developers like PS Group, Srijan Group, Siddha Group, etc. If they can crack a deal with the reputed developer at a good price then that itself can be identified as the best time to buy a property.
Don’t get carried away by discounts or offers only
The buyer must be aware of the offers given by small builders & promoters as they may have a hidden clause. Generally, it is seen sometimes reputed developers give good offers & benefits which makes it the best time to buy a property if the buyer can avail of those benefits.
Go for WBHIRA registered projects
The buyer should try to book property which are HIRA registered as they are safer to purchase from many aspects. If the buyer can book a property with all benefits in a HIRA approved project then that will automatically give them the upper hand in the best time to buy a property.
Go for developers that deliver quality projects on time
The buyer should try to buy the property from developers who have a track record of delivering projects on time. Many developers due to various reasons take a longer time to complete the project within the committed time period.
Check the reviews & ratings on the internet about that developer & project
To check the reviews & ratings of projects & developers over the internet is very easy for buyers nowadays. Google gives a lot of options to check the feedbacks quite easily also the ratings of the project with reviews of existing clients are easily showcased. Thus nowadays the developers are cautious with their commitment & quality of work.
Check the legal aspect of the property & land ownership documentation by a lawyer
A thorough checkup of all the legal documents of the project is the most important work to be done by the buyer. They should consult with a lawyer regarding that too.
After considering all these factors a buyer can go for a purchase of their choose flat as this is the “Best Time to buy a property” through a leading real estate agent by getting best consultancy on the property-related matter from the experts in this field and can finalize accordingly.
Yes, this is the best time to buy property when interest rates of home loans are minimal.