Home loan rates at historic low in 15 years, utilize opportunity before it gets too late: Bullmen Realty

Buyers who were waiting to invest in properties must utilize this golden opportunity before it gets too late.

The home loan interest rate has come down considerably. The PMAY scheme has been extended by the government providing subsidy to the eligible buyers of real estate. While for an end-user, its always the best time to buy a home, the current environment is looking ideal to make a hard-bargain with the developer and get a home of your liking.

The choice between a ready-to-move apartment or booking a property in a new launch is something one will have to carefully evaluate. Not just the price difference, the timely delivery of the units has been a concern in the industry.

FE Online in an email interview with Kapil Kapur, Director – Sales, Strategy & Business Development, Bullmen Realty tries to find out the state of property prices across the country and on several other aspects.

Here are the excerpts:

Ready-to-move or New Launches: The approximate price difference touches approximately to 20-30% between Ready to Move Homes and new launches.

Suitability: RTMI homes are a good deal to procure if you are looking for better accommodation, but from an investment point of view, new launches are the best catch.

Home loan: Home loan interest rates have recorded a historic low of 15 years. Buyers who were waiting to invest in properties must utilize this golden opportunity before it gets too late.

In terms of buying, what is the current state of the residential real estate market across the country?

The unsold inventory is higher in the Mumbai Metropolitan region and Delhi NCR. However, the current situation of falling interest rate regime is the perfect incitement for fence-sitters and buyers looking for a second home. Tier-II and III cities are comparatively less impacted.

The work from home phenomena is likely to reap better benefits for tier II and III cities. Additionally, these cities enjoy pricing advantages vis-à-vis metro cities. There is no denying the fact that 2 months of lockdown had a considerable impact on home-buying, but as the cities unlock interest towards spacious, well organized and greener homes gain prominence.

Realty markets like Gurugram and Noida have reported a decline in property value during 2015-20. Thus, chances of price correction are very remote, particularly in the affordable housing segment. If it may occur to combat the lockdown effect, the prices may reduce a bit in the luxury segment.

Are people opting for Ready to Move homes or opting for New Launches?

This depends on the discretion of buyers, with the introduction of RERA there is complete transparency between dealings and credibility of registered developers is much better now.

The homebuyer is smart enough to research from relevant sources before entering into an agreement. RTMI homes are a good deal to procure if you are looking for better accommodation, but from an investment point of view, new launches are the best catch.

Currently, with market conditions being uncertain the buyer has to think this through, assessing his financial status and project’s location with the builder’s track record. People with savings are opting for new launches, and buyers who are comfortable in paying EMI installments for better accommodations are diverted towards RTMI homes.

Between a Ready to Move home and New Launches, what is the approximate difference in price?

The approximate price difference touches approximately to 20-30% between Ready to Move Homes and new launches. RTMI homes limit the flexibility of the homebuyer in terms of not just interiors, but also the amenities and availability of certain floor and configuration.

Ready to Move in homes come at a higher cost than new launches, payment plans for both properties also differ largely. GST is paid on the entire amount of new launches, even if the builder provides the freedom to a buyer for paying only a certain percentage as a booking amount.

For the under-construction project, a buyer also has flexibility in payments, with options like construction-linked plans, subvention schemes, flexible payment plans, etc.

In both cases, necessary approval and licenses must be checked for properties. The location should be a critical factor for RTMI homes to ease your daily commute.

Do you think the home loan interest rate is low enough to induce buyers in purchasing homes?

Home loan interest rates have recorded a historic low of 15 years, the real estate developers have made site visits completely transparent and virtual with digitization. Buyers who were waiting to invest in properties must utilize this golden opportunity before it gets too late.

As we gradually enter Unlock 2.0, the market is going to pace up, this may lead to an appreciation in prices, as demand for a better lifestyle is now more prominent as per the recent consumer surveys being carried out.

Also, WFH has become a reality, residents are likely to be spending 80-90% of their day’s time in their homes, the people with regular sources of income are interested in upgrading their living standards, which brings hope for realty.