Builders Priority to Clean Ready-to-Occupancy Inventory During COVID-19 Outbreak

Real estate sales in India were improving in the first quarter of 2020, until the social distancing advisory was implemented by the government, with the outbreak of the COVID-19 virus continuing, reducing site visits. Subsequent lockdown forced house buyers to postpone the decision to buy their home until the government and the market had more clarity than stability.

The economic relief measures announced by the government are extremely positive for the real estate sector on a large scale. This measure will compensate for the short-term impact of the crisis and increase liquidity, thereby easing credit flow and reducing the pressure of delivery deadlines. This will allow real estate developers to reorganize their business strategies and focus on high priority operations without additional financial burden. It will also ease home buyers' concerns and accelerate the completion of delayed projects. This step highlights the magnitude of the realty sector in India. Being the second largest employer in India, it is mandatory to protect the welfare and interests of all stakeholders.

Currently, the priority of most builders is to sell ready-to-occupant inventory. Now that the government has relaxed the lockout, the market may pick up momentum again, with more buyers entering the market. Although sales will be comparatively slow, it is unlikely to affect real estate prices overall, which has also maintained flexibility during demonetization and other reformist changes previously announced by the government .

In these challenging times, as people have realized the importance of owning a house, the demand for residential properties may increase in metro cities.

Better demand for property is likely to have a positive impact on property prices.

The place for price appreciation in real estate as the city offers quality housing options at affordable rates. Although the lockdown caused a short period of delay in construction activities, a reduction in prices is unlikely.

5 Tips for First Time House buyers

Tip # 1 - Focus on interest rates

An increase in the interest rate can increase the payment on your mortgage, but it has a greater impact. The more you plan to borrow; the interest rate changes will affect your loan, payments and overall purchasing power. Interest rates can also affect the overall mood of the market. Changes in either direction can create a feeling of excitement in buyers and sellers alike.

Tip # 2 - You should be able to make more than just adown payment

At one time, house buyers could reduce payments coming out of pocket. All others were able to roll the related fees and closing costs into the mortgage. But these days, lenders want not only the down payment amount, but also their closing costs to be available in cash. And with some closing costs being 2.5% more of the loan amount, it can actually have an effect on how much home you can actually buy.

Tip # 3 - Before you start seriously looking for houses, become pre-qualified

Pre-qualifying a house loan is not a guarantee that you will be approved, but it is a good place. This is because getting pre-qualified will give you an idea of ​​how much house you can buy. Also, because your credit score, debt-to-income ratio, and down payment amount can have an impact on your interest rate, pre-qualifying will give you the information you need in the process so that you can improve your chances approve your loan at the best rate possible.

Tip # 4 - Do your due diligence when choosing an agent and / or lender

Buying a house requires a lot of research. However, your research should not be limited to just comparing places and properties. You also need to do your due diligence when shopping for a real estate agent as well as your lender. When you are buying your first house, trusting your agent and lender is paramount. Therefore, ask people you trust for referrals to realtors and lenders. Visit and talk with everyone before agreeing to use their services.

Tip # 5 - Be Ready to Move   

If you find a house you love, put in an offer and get ready to move because there are chances that things will move quickly. This is especially important if you are looking at houses priced in your budget or less. Buyers will jump on these properties because house prices are going up, they want to leave in a hurry, and so should you. Good luck!

 

SUGANTA REALTY SERVICES LLP