Buying a house in COVID-19? Smart? Yes. Easy? No.
Now more than ever, the COVID-19 pandemic has highlighted the importance of owning a house. But since the lockdown has banned all on-site visits, homeowners have taken a back seat and have delayed their investment plans.
While the situation may look dreary and your dreams of owning a luxury flat in Gurgaon unachievable, here is why buying a house during COVID-19 is smart but not easy.
With businesses coming to a complete standstill, a lot of properties have corrected their prices substantially. According to Deepak Parekh, Chairman of HDFC, real estate prices may even crash up to 20% in the upcoming months due to prolonged demand drought.
Apart from this, lucrative payment plans are being offered to encourage customers to invest, and the scope for negotiations is high as well. Many residential projects in Gurgaon, might also be offering these cost benefits so it’s important to stay on the lookout.
Although the opportunities are profitable, the process of achievement is highly tricky. It is recommended to have job security and assurance of salaries post-pandemic or enough monetary reserves if potential buyers are looking to investing in real estate in the current situation. It is also preferable to look at properties with prior loan approval in place.
Low competition, more opportunities
According to a survey by MagicBricks, 9% of buyers have completely dropped their investment plans and 24% have put them on hold. This lack of competition can pave the way for many profitable deals without any risk of blocking or counterbidding. This can be used as a good opportunity for you to start looking for those highly sought after residential projects in Gurgaon.
A possibility of repossessed properties entering the market must be taken into notice. Properties are repossessed by lenders when the borrowers default on loan repayment. With a lot of people suffering from job loss and salary cuts, this might become a common occurrence in the following month if the situation worsens. Consequentially, properties like this, although a tricky terrain, auction at 20-30% lower price. While this may seem very profitable, properties like these come riddled with legal disputes and unpaid fees and expenses so it is advised to tread carefully.
What can be done?
Without the scope of movement and meeting, developers have opted for the digital platform for selling properties. Virtual tours, 3D displays, e-brochures, product videos, and video-conferencing have taken over the physicality of the trade with big names like Anarock and Godrej Properties recording blooming sales. But this does not make site visits completely redundant. A buyer should visit the property at least once before finalizing the deal. If not possible, you can block that luxury flat in Gurgaon and visit it after the lockdown.
It is advised that properties be bought from a branded developer. Buyers should also conduct thorough research on project approvals and timelines on RERA websites as well as hire a real estate lawyer to check through the necessary documents.
This pandemic provides many lucrative opportunities for homebuyers to take advantage of and they can, if done carefully. But while it might seem too good to give up, what works for one might not be successful for another.