Owning or Renting: what is more beneficial amidst a crisis?

The unprecedented situation in a way has proved to be advantageous for homeowners rather than for those who have rented the accommodation. 

The aftermath of the Covid-19 pandemic situation has established the fact that owning an apartment is way better than dealing with the uncertainties of living in rented accommodation. People are also realising 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 hightened risks.

The crisis has led some to concern about their ability to pay monthly rent in this on-going lockdown period. On the other side, those who have already owned the houses are benefiting with various schemes and policies regulated by RBI and Government of India. 

Now, you might think about one of the biggest hurdles, which is the scores of individuals, whether they’ll be able to pay EMIs or not. However, owners incurring EMIs have been offered a three months EMI moratorium by RBI amidst COVID-19 lockdown phase.

This is one of them; however, many other factors in a way have helped those who have recently owned the houses. Let’s check out what are those.  

• The stamp duty rates have been reduced up to 1% for any new apartment sales over 4 months to name a few.
• The RBI in its policy decision towards the end of March 2020, slashed repo rate by 0.75 basis points (bps).
• The move by the RBI has brought interest rates on home loans to its lowest ever in the last 10 years.

It’s definitely good news for those chasing a life goal to own a house, more so for those waiting for the right time to take the plunge. If you’re among them, then wait no further.

What has changed?

According to a report, the BSE Sensex that touched a high of 41, 940 in January 2020 have already decreased to around 30,602 levels in the third week of April 2020. Considering the present situation, realtors are carefully choosing residential project developments.

One can notice that developers have increased focus on Ready To Move In inventory. Also, RTMI is a preferred option today as it offers cost-saving advantages. Moreover, mortgage rates began in 2020 a little under 4%. Then the COVID impact resulted in settling below 3.5% by the March-end.

The above mentioned benefiting factors have significantly been a boon to the homeowners and not to the tenants. Another aspect that bought a sigh of relief to the homeowners is that their properties are safe and viable. Once the COVID-19 situation settles, homeowners can realize that their decision of owning a house played a catalyst’s role in their lives. 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.