Isn’t it wonderful to live in the comfort of your own home during these trying times?
Waking up just minutes before a zoom call, going to the kitchen numerous times, spending time with family, getting back to some old hobbies are few examples of how mankind is adapting to the new normal and starting to enjoy it. With the increasing amount of time spent at one’s house, people are realizing the true value of residing in an owned home as it provides the feeling of safety, security, and stability.
But many investors and potential home-owners are at the crossroads of ‘secure and safe investments’ in recent times. This is where investing in Real Estate works for their benefit. It’s not just about having a secure home but also, investing your hard-earned money in a commodity that won’t be risky when difficult times arrive. In the current situation, the stock market has crashed, leading to major losses for those investing in shares along with a sharp fall in the price of gold and other such commodities.
While there has been a drop in prices of real estate as well, here’s why real estate is still the best way for great returns, low risk, and security of funds.
- Credit Linked Subsidy Scheme: Under the Pradhan Mantri Awas Yojana, the Credit Linked Subsidy Scheme provides interest concessions to different categories of people depending on their income. It mainly benefits the EWS (Economically Weaker Sections), LIGs (Lower Income Groups), and MIGs (Middle-Income Groups, the ones with an annual salary between 6 to 18 lakhs) with an interest subsidy on home loans.
But it was announced on 14th of May, that the scheme for the MIG category has been extended till 31st March, 2021 (which was previously March 2020)
This extension is a boon for the current times.
Do note that the subsidies differ between MIG- I & MIG- II. The beneficiaries with annual household income between ? 6 lakh and ? 12 lakh (MIG I) get an interest subsidy of 4% on a 20-year loan (only up to Rs. 9 lakhs). The ones with more than? 12 lakh and up to? 18 lakh (MIG II) get an interest subsidy of 3% on a 20-year loan (only up to 12 lakhs). The definition of annual family income comprises incomes earned by the husband, wife, unmarried sons, and unmarried daughters. For children (married or unmarried) staying with their parents in a house owned by the parents (or on rent, in the same or another city), can opt for PMAY provided they are earning and don’t own any other houses. This is a golden opportunity for those who are earning and don’t own any other home. So all the families staying in rented homes, married couples and young millennials – this is your chance to own a home.
- Price Protection Policy: IIn the simplest of words, PPP is the cashback one can avail in Real Estate. Many Real Estate Developers like Srijan Realty and others offer a Price Protection Policy that protects your investment from fluctuations in the price of the property. The difference in the price is adjusted by the company against other costs and your funds are secured. For Srijan Realty, all the projects’ Price Protection Policies have been extended till March 2021 making it an ideal developer to invest in.
- Low Home Loan Rates: Home loan interest rates have never been lower. SBI Home Loans, as well as the interest rates provided by private banks, have been at their lowest which reduces the installments to be paid for the home in the future for the home loan recipient. As per RBI’s rate cut policies, only the home loans that are linked to the repo-rate, get relief of upto 40 bps on their loans (One bps is one-hundredth of a percentage point). So for the new borrowers, the rates have come down to 6.95 %, 7.20 % & 7.30 % for a loan upto 30 lacs, 75 lacs and 1 crore respectively. The updated rates, however, remain invalid for the Marginal Cost-based Lending Rate Loans.
- Opportunity for NRIs: With the value of the rupee falling against the US Dollar, it is the ideal time for Non-Resident Indians to invest in real estate, be it residential or commercial. They can incur benefits like greater returns on investment as well as lower interest rates on home loans.
- Increase in demand among Millennials: Increasingly, millennials are realising the value and security of a home and we see a rise in sales among this generation. In a survey about investments, those who voted for real estate as the best asset class for investment, at least 55% were in the age bracket of 25-35 years owing to the security of a physical asset.
Long-term Goals: In the case of most of these millennials as well as people of an older age bracket, long-term goals definitely involve a pre-owned home. Along with that, the returns are much higher in the case of real estate in the future, especially when the near future is uncertain.
As per a study, there was a strong demand for ready-to-move-in flats in the first quarter of this year. After tracking the data, a global consulting firm claims that residential property sales in March 2020, after their lockdown was lifted stood as 95% as compared to December 2019, indicating that post-lockdown, India could likely witness a similar trend.
For those waiting for the right time to invest in a home, the opportunity’s knocking on your door! And if you’ve reached that point where you have started looking for best real estate developers in Kolkata, look no further than Srijan Realty! With an array of projects that support sustainability, are surrounded by natural greenery, boast of open spaces and modern amenities to keep you engaged along with spacious flats that define comfort, Srijan Realty is where you should be investing. To know more about us visit www.srijanrealty.com