This is the best time to buy a house
Source: The Economic Times (https://bit.ly/3z8iUKF)
It seems the demand for housing is back to pre-Covid levels. A number of government initiatives, including stamp duty cuts, seem to have helped. Do you think this demand can be sustained? It has been my view for a very long time that this is really one of the best times to buy a house for a variety of reasons.
Firstly, interest rates are probably as low as they will get.
Probably, because I personally do not think there is much scope for a rate cut going forward, that is number one. Number two, most states have done something or the other to incentivise people to buy a house in the expectation or in the belief that by giving a boost to the housing sector, a boost will be given to all the core sectors in the economy. Cement, steel, paint, power and all the ancillary industries associated with housing will get a boost.
Also, housing helps create a huge number of jobs. Therefore different states have done different things. Maharashtra has reduced stamp duty rate from the original level of 5% to a level of 2% provided the registration of the properties are done before 31st of December and then it becomes 3% if it is done from January to March and post April, it reverses back to the original level of 5%. Thirdly. developers tell us that for any truly interested customer who walks into their site these days, they try to complete the deed. That means giving a 3-5-7% discount if needed.
So, a combination of these three things has made housing more affordable today than it has been for a very long period of time. Also you must remember that in the last four years, property prices in India by and large have not gone up. If anything they may have marginally come down and therefore in the context of all these facts, this is the best time to buy a house.