Real Estate – Stable Investment Platform Post Coronapocalypse
Real estate is considered as one of the most stable and safest investments but in the post-COVID-19 scenario. Compared to the risks attached with buying stocks, which is unlikely to change soon, or the low returns on keeping money in the bank, real estate investments are turning to be more fruitful.
Lockdown period has given an ideal opportunity for smart buyers to invest their valuable time in searching, evaluating and shortlisting the choices for their dream home with credible builders, and technology is also helping such smart buyers get the best deal.
Today, the real estate sector is moving towards a rapid digital transformation. Developers are increasingly leveraging, as well as experimenting with new-age digital tools to engage with the customers. From video calls to social media to Virtual Reality and Augmented Reality, we can see the penetration of real estate players. These technologies are helping developers provide a virtual tour of the projects and engage with potential customers. This has led to opening wide doors that stimulate a buying decision in potential customers while still staying indoors.
In addition to this, the recent repo rate and reverse repo rate cuts have led to cheaper home loans as the interest rate is likely to fall as low as 7 per cent. Hence, post lockdown can be considered as an ideal time for homebuyers who have been firm on their buying decisions to come out and leverage these real estate investments opportunity. As these uncertain times are likely to be our new normal, it is wise to live with it and invest wisely in products with longer shelf life and with good returns.
To make things more lucrative for real estate as stable investments, the Government had announced an increase in the tax deduction limit to 3% on the interest paid. Further, the Government had reduced GST rate to 1% for affordable homes and 5% for other under-construction homes last year. These provisions have recently left a mark of NRI Investments in Pune, Navi Mumbai and other cities. And with the festive season around the corner, the momentum in the housing sector is likely to scale up with attractive deals and offers.
Overall, the short-term impact of the pandemic may seem negative but it is certain that when the coronapocalypse subsides, smart home buyers will grab the benefit of better-priced deals, lower home loan interest rates and a myriad of incentives provided by the government. Likewise, corona indeed has taught us the value of a stronger community and considering the positive changes in the same, it will be a win-win scenario for home buyers and developers alike.