The COVID-19 pandemic has turned the global economy upside down in ways no one has ever imagined. Our country’s economy is no different. Businesses and household income have had a major hit on account of affected business activity. For those who had plans to buy a home this year, it is challenging to decide if they should buy a home while the pandemic persists.
Buying your dream home becomes easier if you have your finances in order. However, the current situation calls for careful analysis of possibilities that may result in the future. Even if you have enough money to buy a home, investing a significant part of it at once may is not an ideal option for now.
A better alternative to fulfilling your home purchase dream without utilizing all your savings is a home loan. Based on your home loan eligibility, you can easily get external financial help from a bank to set foot in a new home. Many reasons make a home loan the right choice for investment in properties during COVID times.
Buying a home requires a significant investment. If opting for a home loan before the lockdown was not in your mind, the purchase implies exhausting your savings for your new house.
Now, think of the nationwide lockdown that we all have witnessed, with affected business activities and incomes. Your savings are the boat for you and your family to cross over the hardships in such difficult times.
Since no one knows how long the COVID pandemic effect will persist, it will be in your best interest to keep the savings intact. For your decision to buy a home, rely on home loans offered by renowned banks in India.
The repayment of the amount you borrow under a home loan is made with additional interest to the lender. This interest is charged at a specific rate and is calculated over the home loan tenure chosen. On account of the COVID crisis, you can also witness a drop in these interest rates charged by banks and NBFCs.
Reduced interest simply means lower EMI. In other words, you can plan to pay home loan EMI using a part of your income without having to rely on your savings for this investment. You can check the EMIs payable for a specific loan amount online using home loan calculators.
When it is about building or maintaining an investment portfolio, most investors are facing hard times to add or retain their investments in different instruments. However, real estate has gained popularity amongst investors being a stable asset class. This also has a favorable impact on the home buyer’s sentiment.
Opting for a home loan also means getting help to make a long-term investment, which will most likely yield good returns in the future. The property value mostly appreciates over time, making you earn more if you ever plan to sell the home.
Fulfill Your Dream of Buying a Home Earlier with a Home Loan
The ups and downs prevailing in the market make us think twice about big life decisions. Particularly for property purchase, it is crucial to zero in on a decision that does not significantly impact your finances.
You can easily opt for home loans from reputable banks in India like Axis Bank and check premium estimates using online home loan calculators. It is advisable to research thoroughly on various aspects of home purchase before you make any final decision. Plan smartly, and then welcome your loved ones into a new abode for life.