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Whether Corona situation will affect the prices of real estate property? Is it right time to buy a property?


Today's our Blog is related to answering the common question running in minds of common people regarding real estate.
Whether Corona situation will affect the prices of real estate property? 
Is it right time to buy a property?
            Generally whether to invest/buy property or not is individual decision of a person depending on their goals and needs. Then too, here I will give you some Current updates which will help you to take right decision. Guys as we all know, after agriculture real estate is second most sector which contributes to the economy of our country, so the government is also taking some steps to boost the real estate industry. One of its example is reduction of Repo rates from 5.15% to 4.40% by RBI on 27th March 2020.This 0.75% reduction in repo rate which is major percentage reduction in last 20 years.This will help in reduction of home loan interest rates. I will explain this by taking simple example so that you will get exact picture of benefit. Let's assume, as repo rates reduced by 0.75%, home Loan interest rates also get reduced by same percentage. For example: you take a loan of 30 Lakh for 20 years. So your EMI Comes to Rs. 24,907 with old rate of interests and after 0.75% reduction in repo rate this EMI comes to Rs. 23,510, this means you get the benefit of Rs. 1377 per month, which is good amount.
     
        So next point is whether Property rates will come down? Actually the profit margin of builders has hampered now a days. Demonetisation, GST & RERA has somehow affected the Profit of builders. Due to lockdown situation builders are already facing the problems of raw material supply, labour shortage & many more. This affects and increases Construction cost of builders. So the general expectations of buyer that property rates will majorly come down,is somewhat difficult and then too if this happens, it may affect the construction quality & timely possession.
     
      But builders are also facing financial crisis due to lockdown situation. So many builders are giving attractive offers & those builders having need of liquidity are also selling limited flats at discounted rates, especially for those customers whose pre- loan is sanctioned or customers who are ready to make fast payment.
   
       One more thing is that due to financial crisis builders will majorly focus on completing their ongoing projects instead of new launching. But Property demand will remain same and this will create the situation of demand Same but supply somewhat less, so there are no more chances of rates reduction.

          Investors are also looking this situation as golden Opportunity for their investment and also now investors who investing in share market are preferring real estate these days because of its secured & definitely gives long term benefits.
       
         As you all know value of rupee has been decreased as compared to dollar, so real estate is good investment opportunity for NRI's.

        Also news is flashing that various foreign companies are shifting their industries from China. And for this, more preference has been is giving to India due to availability of resources and work-force.

       So after studying this entire situation, we will suggest that those having secured Jobs / business or those having extra funds can take the benefit of this opportunity,go ahead and buy/invest in real estate. Reach us to know great offers and to get best deals.

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