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Buying a new home: A necessity more than just a luxury

Last Modified: 21 Aug 2020

Amidst the COVID-19 outbreak, owning a home that you can call yours has become more appealing than ever. People are realizing the importance of physical assets as they render a higher sense of security than liquid assets. With the growing desire for house ownership, residential investment is bound to see an increase in demand amidst the pandemic. With owning a home, the house becomes an asset that increases value over time. According to a home buyer preference study in India, 91% of home buyers preferred buying a new home over leasing, and 67% of potential homebuyers stated that home was a need and not just a luxury. 

Over the years, a gradual shift in preferences from house ownership to renting was evident. However, with the pandemic forcing everyone to stay indoors, owning a home has become an integral aspect of most people’s lives. 

The work-from-home effect on house ownership:

While spending inordinate amounts of time indoors balancing personal and professional life, homebuyers are now seeking houses that can accommodate all their needs within their living space. Nearly 90% of potential homebuyers want an at-home office setup and a private outdoor area. The importance of owning a home is gaining momentum during this unexpected pandemic and buyers are willing to pay premium prices to meet their basic needs. Thus, there is a strong inclination towards ready-to-move-in houses over long-term construction projects. This makes owning a home a necessity and a great investment plan! 

Reasons why you should consider buying a new home now:

Lower interest rates

Lending rates are at its lowest in the past 15 years. This was heavily influenced by Reserve Bank of India’s policy decision to slash repo rates to just 4%. This has made home loans an attractive opportunity for potential buyers. A low repo rate has significantly brought down home loan interest rates in private and public sector banks to 8.05%, and 7.20% respectively.  

Attractive payment plans and schemes

Smart developers are finding the opportunity now to attract potential buyers by introducing interesting payment plans, schemes, and discounts to suit customer preferences. In addition to this, developers are also introducing cashback offers and refund options to buyers who intend to make a residential investment during the pandemic. As a buyer, this is the right time for you to take advantage of the swaying market and less competition. Start negotiating now!

Possibility of the price curve to move upward post-pandemic

Due to the pandemic, there is an inevitable slowdown in the construction sector. It might take a while for the new supply to enter the market and slowly pick up momentum. As the demand is greater than the supply, we can witness an increase in property prices post-pandemic. So, invest now to reap the house ownership benefits later! 

Less competition

With the current economic recession, the search for a home hunt is thinning out a bit, thereby decreasing the competition of buying a new home. Around one-fifth of homebuyers in India are willing to make a residential investment online. With attractive virtual house tours and online listings, this is the right time to negotiate a great deal with your developer to move-in to your new home faster than ever!

Stability & familiarity

While living in a rented property can give you short term benefits, the feeling of stability and familiarity you get from owning a home is unmatchable! With renting houses, shifting and re-settling your living space often can be a time-consuming process. Moreover, you will be unsure of how long you can stay and will always be thinking about the future. With house ownership, you buy and set your abode and create a serene environment according to your taste. By following feng shui home tips and creating mindful spaces for recreation, this can draw in a more special bond with a place you call yours, always! 
To conclude, buying a new home can be a daunting experience, but you can make the most out of it by making smart options in your residential investment plans. Weigh all the benefits mentioned previously and research well to find the best place for you. If you are considering buying a new home in Bangalore, Assetz Property Group has property projects that strike the right chord between luxury, sustainable living, and comfort!

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