The COVID-19 pandemic has affected the real estate market segment, in ways more than one. While at it, it has also given rise to new trends in real estate. According to 2020 Housing Market Predictions by Realtor’s.com, the real estate market is booming for millennials. It’s a good time for them to invest in their first ever homes.
In a pre-pandemic world, the millennials would rather rent than buy homes because it’d give them better mobility and more freedom. But, in the wake of the COVID-19 pandemic, co-living options are no longer safe or desirable. Also, due to a new surge in cases, housing societies are hesitant to allow new occupants who are renting apartment.
Economic crisis, loss of jobs, a large number of people returning from the middle-east, relocation to home-towns and countries and social-distancing norms are some factors why millennials would consider buying their first homes right about now. Another reason why millennials should consider acquiring real estate is because it makes for a comparatively stable investment.
Here are a few tips for millennial home buyers out there, trying to buy their first house.
Tip 1: Factors to consider: connectivity, commute, secure neighborhood
Choosing a well-planned locality is imperative to your house buying success. For you and your loved ones to feel at home, the locality should be strategically located and have access to emergencies 24*7. It should strike a healthy balance of nature and social infrastructure such as parks, retails shops, schools, hospitals etc. Also, you should consider the commute time between home and work before deciding upon a neighborhood. Once the lockdown reopens, you will have to travel to and from work on a daily basis, and the last thing you’d want to waste a good part of your day on unnecessarily long commutes.
Tip 2: Determine the type of home you need. Check out offerings by Narang Realty
Once you have set your heart on a desirable neighborhood, check the property prices in and around the area, and plan your budget accordingly. But, before you make your down payment, here are a few factors for you to consider: consider the number of family members, and make sure you buy a house which is well-designed to amplify the available space. Go for well-designed houses with ample open spaces and plenty of natural light. Consider the lockdown and the currently prevalent work-from-home situation. This means: all the members in the family will be spending most of their time indoors, while you will need your corner of peace and privacy to set-up your work station, and be at your productive best. Also, keep the need to safety and social distancing in mind before you go ahead with your choice. The best way to go about this is to choose a housing society that accommodate fewer number of families per unit.
Speaking of spacious, well-designed, and well-equipped homes; check out the 2BHK apartments by Narang Realty. Check out this link now, to take a virtual tour.
Tip 3: How to get home loan 1st time homebuyer
If you are planning on buying your first house, the chances are that you’re planning to apply for a home loan. If you are new to the whole thing, it can be very confusing. There are different kinds of loans available, and it does not get any easier with each having its own pros and cons. It’s a good thing that our housing projects are pre-approved by all renowned banks and lending institutions. This is bound to make the process a bit easier for you.
Here are a few steps you should follow while applying for your first ever housing loan:
Step 1: Decide the loan amount, and tenure, estimate home loan EMI, and check for loan eligibility. One common mistake that newbies make at this stage is that they opt for longer tenure to reduce EMI, but in the long run, you end up paying more interest to your bank. So, plan it out carefully.
Step 2: Check the approval status of your property. Well, as mentioned earlier, you can safely skip this step, if you are going to set-up your home in any of our housing projects.
Step 3: Fixed or floating rates of interest— what should you choose? That depends, but before you make a choice, understand the difference between the two. Fixed rates are more advisable if you want to play safe, and avoid additional financial burdens due to fluctuation in interest rates. Unlike fixed rates, floating rates are more susceptible to market changes. It is advisable to go for floating rates when you can expect rates to trend down in the coming months.
All in all, make a well-informed decision, and consider factors like turnaround time, customer service levels, and past base rate trend of the banks before opting for any particular housing trend.
Conclusion
Are you still in two minds about purchasing your first ever home amid the economic strife brought about by the lockdown. Buying a house is probably one of the biggest investment that you will ever make. So, you should not rush into it head-first, without prior considerations. Having said that, let us also tell you this: now is as good a time as any to buy your first home, thanks to the low rates of interests, the recent reduction in stamp duty in Maharashtra till 31st December, and the great deals offered by the home developers. Need some more help on deciding on your dream home? Let the Narang Realty experts help you out. Check out our housing projects in Thane and Andheri for more information.