The pandemic hit us in 2020 throwing the entire world in a new normal situation and life hasn’t been the same for any of us since then. It has been two years of combating the waves of the pandemic, and adjusting to lockdowns and the gradual unlocking phases has become a norm. The repercussions of the pandemic have been felt severely on many levels, and the real estate sector is one of the sectors to be affected.
Many prospective home buyers are hesitating before making an investment now. Even though people are looking for a 1 bhk flat in Mumbai for sale, they are not sure whether they should purchase it right away. Does it make sense investing in the real estate market now? Should you wait till the pandemic is over? There are several factors to consider here, let’s go through them before arriving at a decision.
Investing in the real estate during pandemic: Should you do it?
The pandemic has affected many sectors. There have been layoffs, professionals who have managed to retain their jobs have not been able to find better opportunities, or, worse might have been subjected to pay cuts. The business owners have been under financial pressures too. Due to the pandemic the WFH trend has caught on which again is stressing the need to have access to your own place.
It is very hard to come up with a generic suggestion here as there are a number of variables at work affecting the prospective home buyers. However, a couple of pointers have been discussed here which might clear some confusion regarding your decision to invest in the real estate in Mumbai.
How long are you prepared to wait?
The pandemic has unleashed a level of uncertainty that we were not prepared for. Despite there being severe lockdowns, social distancing measures, and vaccination programs taking place rapidly all across the country; the situation is still not under control. The year 2021 was hit by the second wave of pandemic, and this year too we are under a threat from the third wave.
The point is, the situation still remains unpredictable and it is still not certain when it will be completely over. Those who want to purchase a 1 bhk in Lower Parel because of secure professional ties, and have the financial stability to take the plunge, they should make a move now. Postponing the decision does not make sense if you have the means to buy a flat now, because waiting till the dust settles is not an option any more.
Several measures are in place to aid the home owners:
Due to the pandemic several measures were taken to ease the financial burden that otherwise might have discouraged the home buyers. Packages and policies were introduced by the governments to enable the prospective home buyers take advantage of these offers, thereby ensuring the real estate markets stay afloat despite the pandemic.
Furthermore, the home loan rates are now the lowest in years, the RBI’s decision to lower the repo rate has impacted the home loan rates in a positive way. There is a section of the buyers, who can pay an upfront fee, but there is another section looking for a 1 bhk flat in Mumbai for sale, and they have to take out a home loan to make the purchase.
It is needless to point out that paying an EMI every month is a financial burden. The slashing of the home loan rate will lower the EMI amount payable every month, undoubtedly this is a great time to apply for that home loan to buy your flat. There are additional measures in place too like the reduction in the stamp duty.
Furthermore, the real estate developers too are taking steps to encourage the home buyers. They are offering discounts, incentives, easy payment schemes along with several amenities in the sales package.
In the light of all these measures being taken, investing in the real estate in Mumbai seems like a sensible idea now. These measures mightn’t be available once we enter the post-COVID phase.
A change in lifestyle:
In the pre-COVID era, working from home was an option, but when the pandemic hit the world the professionals who managed to retain their jobs had to switch to the work-from-home mode. The severe lockdown of 2020 and the ensuing social distancing norms meant, everybody had to work from home.
Even now, despite there being vaccination programs in full-swing not all offices are fully open. Even when the offices are going to open, the employees might be introduced to a hybrid work culture, wherein they might choose to attend office or, work remotely. The fact remains that the stress is on having access to your own place.
Furthermore, the pandemic shook us into a reality. In any kind of emergency having your own shelter is necessary, staying at a rented place or, in a PG in a lockdown situation and wasting money is no longer an option. In the event of a job loss, or, a pay cut, paying rents would not be possible. Even the children are attending online classes from home, so, investing in a1 bhk in Lower Parel makes sense for families too.
The ROI is always going to be there:
Making any investment during a volatile situation can be risky, but if you are investing in a property then you should not worry much. The demand for residential properties would be there and it would grow especially in a city like Mumbai which attracts professionals from all across the country. There might be an uncertainty now, but there is a demand for a1 bhk flat in Mumbai for sale and it would continue to be there.
If you decide to sell off the flat you buy today, you can expect to get a good price for that. If you relocate in the near future, you can still get a steady income from it if you rent it out. Both ways you will be getting the ROI from the money you invest now.
Also, there might be a higher demand for properties once the situation gets stable, and that might cause the property prices to soar high. So, give this a thought today.
Conclusion: The above mentioned factors indicate, if the other variables in your life right now are conducive to investing in the real estate, you should make a move. Take advantage of the offers available especially the low home loan rate and buy the flat you have been planning on getting. Approach reputed builders, take a virtual tour of the property, look for the schemes they have on offer.
It might take a while for things to simmer down to normal from the new normal situation, but do not let the uncertainty prevent you from moving ahead in your path if you envision your future to unfold in the city of dreams.
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