In this era of Corona crisis, it is very important to save money. At such times, additional liability should be avoided by taking its head. At a time when the economy is going through a recession, the income of salaried and self-employed people is getting affected. There is uncertainty about the future. In such a situation, it is necessary to understand that additional liability will increase the pressure on you. The vaccine of Covid-19 is not widely known and cases of infection are increasing daily.
Buy or Rent a Home?
If your job and salary is safe during the Corona period and you have been in the process of buying a house for some time, then this is the right time for you. Property prices have come down in the last 4-5 years and interest rates have also come down significantly. Also, there are many ready to move inventory in the market. In the current situation, the buyer has the ability to negotiate. This is the first time in 15 years that a buyer is in a position to buy a home on his own terms. Earlier, builders and suppliers dominated for 10-15 years. But those who are struggling with a financial crisis should avoid buying a house for the time being. It would be right for them to stay on rent.
What factor to keep in mind
Those who are in a position to buy a house also need to make a conscious decision. A reduction in the income of rent means that the property may be priced higher than its original value and the possibility of its growth in the future will be limited. So it is possible that the price of the property you want to buy will remain at the same level for the next few years. Experts say that if the rental yield of a property is more than 3.5 per cent, then only it should be bought. Millions of people have become unemployed and migrated from cities due to Corona. In such a situation, there will be a reduction in rent for the next few years.
Should a property be bought for investment?
The rent is likely to decrease in the coming days, there has not been a significant increase in property prices for the last 10 years and there is no real estate liquid investment. In such a situation, it would not be wise for retail investors to buy real estate from investment purpose. This can be a profitable deal for rich investors as they can now avail 20-30% discount. It would be better for retail investors to invest in liquid assets.
Should an epidemic and recession be kept in mind?
At a time when the economy is going through a recession, the income of salaried and self-employed people is getting affected. There is uncertainty about the future. In such a situation, it is necessary to understand that additional liability will increase the pressure on you. The vaccine of Covid-19 is not widely known and cases of infection are increasing daily. In such a situation, it is prudent to keep cash with you for emergencies. Taking a house now would mean paying the money you have and taking a loan from the bank to take additional liability. In such a situation, it would be appropriate to decide to buy a house only after the epidemic ends and the economy is back on track.
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