Here’s Why It Is Important to Own A Home
July 29, 2020
Every aspect of our lives, be it personal, professional or financial, has been impacted due
to the COVID-19 pandemic. A sense of security seems almost like a luxury now. The
crisis has made everyone realise the importance of shelter and protection in these difficult
times. The result? Rising demand for residential properties.
The aftermath of the present pandemic situation has established the fact that owning a
house is the most viable option at this moment. This sentiment has been felt across all
age groups, especially by millennials who, up until the pandemic, preferred rented
apartments. However, due to COVID, many landlords have asked their tenants to vacate,
especially in metros. And these dwellings have a high density of people where
maintaining social distancing is almost impossible. These circumstances have added up
to the growing sense of safety and assurance amongst the millennials, which has seen a
sudden spike in online property searches.
However, buying a house is a vital decision in a person’s life, considering the quantum of
investment associated with it. There are elements and advantages which need to be
cross-checked basis the present scenario.
Here, amongst varied benefits of owning a house, safety is the most important factor,
considering the situations at the moment. Ensuring health and hygiene would be much
easier in an owned space, in comparison to a rented place. Moreover, with remote
working culture gaining gradual prominence even in the post COVID-era, the traditional
work culture is taking a paradigm shift. Therefore, proximity to the workplace, which used
to force people to live in rented accommodations, is no longer a concern. People can buy
homes according to their choice of areas and still maintain the continuum of work.
With every passing day, people also realise the importance of having real estate as an
asset class in their investment basket; as a more reliable option, offering steady returns
compared to the highly volatile stock market that comes with intensified risks. Besides,
with RBI slashing repo rates from 4.4% to 4% and reducing reverse repo rate further to
3.35%, home buying has become more attractive. The steep cut has brought interest
rates on home loans by public and private sector banks to their lowest, in over a decade.
A potential buyer, however, can still be wary about buying an under-construction house
considering the volatility of the changing real estate policies and prolonged lockdown. In
this scenario, going ahead with ready-to-move-in properties can be the ultimate
solution to avoid handover deferments.
Understandably, the current pandemic must have made people rethink their
decisions before taking a significant step like investing in a property. But, being a
homeowner during these times, will put you in a better and more secure position than you
ever were. The present economic slowdown has kept the prices of residential properties
considerably low, and the government has also provided relief to real estate developers
regarding their project loan payments, to support them in completing projects during this
Keeping in view the current scenario, the combination of lower interest rates along with
stagnant and abridged property prices, now would be a good time to own your own home,
if you have been contemplating this for a while.
This article is contributed by Adrija Agarwal, Strategy Advisor, Salarpuria Sattva