Covid 19 has effected almost each and everyone around the globe in some way or the other. But, one of the most affected areas that have seen a huge decline during the pandemic is the real estate business. If you are interested to buy / sell a property, this is the right time. I have to tried to mention the important points which I had to look for while I was purchasing a property.
As per a KPMG report, the unprecedented scale of the impact of COVID-19 on Indian real estate can be gauged from the fact that the sector has incurred a loss of over Rs 1 lakh crore since the pandemic broke out.
Despite all of these, people started buying new properties since the second wave because they realized the value of owning a property rather than staying at some place on a rent.
The reason I can say this is because I have seen two of my friends who were staying on rent with their family for nearly half a decade decided to move out to their own property because they felt it was safe for their children and elderly parents. But, everything comes with a price. One of my friend had to move out in a hurry so he didn’t investigate about the new property very much. When they moved in, they found out that the house was not properly built and they had to pay a handful of money to the construction company to find and repair the damaged walls. This reminds of the story of Kay. You can read the article here.
Moreover, we have seen that the corporate offices have asked their employees to work from home during the pandemic. So, even though there was an initial decline in the real estate business, people started purchasing new properties and turning them into a home office kind of a thing.
I was operating my business from the second floor of my house and I felt that it was not safe as I live with my elderly parents. I got information about new two flats who were ready to give me the permission to convert it into a small office.
But I was not able to calculate the loan interest correctly because most of the loan calculators give results about a full property purchase or an empty 1 BHK or 2 BHK flat. For my case, I had to purchase a second hand flat and convert it to an office which required extra money.
I came across this website MortgageCalculatorUK which gave me the necessary details that I required to calculate the payment. Even though the currency was different, but the logic worked correctly. I cross checked with other real estate agents and they were surprised that I got to know so many things within a week of my study.
One thing that I noticed is that the large and medium sized developers have already taken drastic changes and necessary precautions at their sites but the small developers are having issues with the cost management. The developers who construct for the corporate offices were also in a dilemna because there were no surety of what will happen in 2022. But now I can say that the market is slowly and gradually rising and I hope that the market price of the properties will also increase in time as people who had been on rent are also taking this on priority and trying to move out in their own home.
If you are looking to purchase or sell a property for a second home or a home office, then this is the right time. The price is neither too high, neither too low. If you are looking for value for money properties, you can check this link.