Home – Sweet Home …..Our Own Sweet Home, is just too close. It is round the corner. Bend and reach it. Don’t miss out.
TABLE OF CONTENT
- Peek in the Past
- Home Loan Rates @ Lowest
- RBI’s Decision Laudable
- Shelter for Generations
- Perfect Investment
- Don’t Miss Out
1. Peek in the Past :
Life has faced a lot of devastation during the pandemic. Each and every sector and every family have smelled the stench. Professionals struggled to stick to their jobs, most of them working from home. It was a real tough period when people faced the evil side of life. The threat of the virus on one side, the fear of job losses, salary cuts, and monthly expenses on the other – worst to add was the rent for those who were in rented houses. It was the rough and harsh phase of life when the entire family was locked indoors. Employees began to work from home; children had started attending online classes. Though the activities had begun, maintaining social distancing was still the darker side. The houses were small and the activities were more. The forced annoyance was the payment of rent. Many NRIs returned to their home towns due to the global financial crisis and job losses. People have realized the importance of a house, especially one that is our own, in times of crisis; one can be at least free from the fright of paying the rent every month. So many are out to own a home as soon as possible because home loan rates are @ the lowest.
2. Home Loan Rates @ Lowest :
Though crushing, Covid 19 has paved the way for the prospective home buyers. Buying a house or to own a home is the ultimate desire of every individual. All of us crave to own a home but most of us do not get a chance to fulfil our desire, but this pandemic has created positive ways in some of the fields. One such field is real estate, where the chances of owning the dream home have increased with home loan interest rates fallen below 8%. This happened for the first time in the last fifteen years. Interest rates had gone below 15% in 2003-2004. This means that the dream house has got closer than before because home loan rates are @ the lowest.
Pandemic has taught us that a home is a necessity as well as an investment, largely due to the lower risks attached. With cheaper rates and availability of a major lump of loan amount sanction in the prevailing circumstances, this is the perfect time to buy a house that one has always dreamt of. The thought itself imparts a lot of comfort and security for the family. With interest rates at low, it allows a considerable amount of savings which can also be utilized in buying a more spacious house. Or else one can at least buy an affordable house as per his financial capacity. The affordable and mid-segment can enjoy this situation and make the most of it. Not only the reduction in rates, but incentives offered by various developers are also burnishing your desire and lending you a helping hand to fulfil your dream. Don’t miss out.
3. RBI’s Decision Laudable :
Owing to the happy year-end, RBI decided to keep the repo rate unchanged for the third time in a row. This move will prove to boost the demand for homes. It has already witnessed a strong improvement in consumption and serves as a positive step in keeping inflation under control. The increasing demand in rural areas, as well as the urban sector, will support the recovery of real estate. RBI will tightly hold on to the repo rate at 4% and the reverse repo rate at 3.35%. Reverse repo rate is the rate at which RBI borrows loans from the commercial banks. This happens when there is excess liquidity in the market. Repo rate is always higher than the reverse repo rate. After the inception of the repo rate in India, it was lowered for the first time in April 2009 on account of the global slowdown. This time the repo rate has come down to lend a hand to the pandemic hit the economy and help it spring back to its feet. This will continue as long as required to revive growth and alleviate the impact of the pandemic, taking care to keep the inflation within the target. A decrease in repo rate means that the commercial banks can borrow more money from RBI at a cheaper rate, reducing the lending rate for the consumers. On the contrary, if the rate of interest increases, consumers will get affected as they will have less money to spend.
4. Shelter for Generations :
Homeownership is becoming more and more affordable with interest rate @ lowest and repo rate reduction. Owning a house is not only fulfilling the long-lasting dream but also a means to provide safety and security to the family. It is a means to secure the future of the family and even of the generations to come. An own house not only benefits this generation but it is also a shelter for the future generations of that family.
5. Perfect Investment :
Real estate investment is the only investment out of many other options, that is risk-free. It is a perfect investment option that promises good returns, even in times of distress. Real estate investment rarely brings any financial loss. It may take a toss in hard times when the economy takes a ride but real estate, being resilient, revives back soon. One such example of its revival is the pandemic –hit real estate. Though badly affected, it took very less time to regain and revitalize. When the home loan rates are @ the lowest, one should not lose this opportunity and own a home, either for personal use or as an asset. Don’t miss out. Real estate assets are tangible and cannot be misplaced or stolen. Real estate is a perfect investment option. When you are planning to buy a house for investment, then it is a win-win situation because the current factors are in your favour and you can grab something better than you would have done in normal circumstances.
6. Don’t Miss Out :
Though real estate witnessed a slow-paced performance in the second quarter of 2020, it gained momentum and presented a happy year-end. 2021 will surely fetch good sales in real estate. This is the perfect time to own a house for self-use or as an investment. Don’t miss out on the opportunity. You can even buy it as a second home if you already own a home. This can be considered as an asset that can come to your rescue in times of crisis. It can also become a source of income if it is rented out. In both cases, one will not be at a loss. Owning a home is a matter of pride, it gives a sense of ownership. One may not get such an opportunity again because such chances come once in a lifetime. One should be clever enough to seize it and should not miss it out, because home loan rates are @ the lowest.
– Written By Pallavi Krishna
