With the\noutbreak of the Coronavirus pandemic, the housing market which was already in a\ntough position due to weak demand and high inventory, plummeted even further.\nIt may make sense to buy real estate now when the prices are low, but you must\nexercise caution. If you are looking to buy a house in 2020, consider the\npoints discussed below before you make your decision.<\/p>\n\n\n\n
Affordability\nhas taken a severe blow, as many people have had to take significant pay cuts\nand others had to lose their jobs altogether. \nMany wealth managers are advising their clients to preserve cash and to\navoid spending, wherever possible. This has impacted consumer sentiment\nadversely. <\/p>\n\n\n\n
According to a\nsurvey conducted by the RBI, consumer confidence started to collapse in May.\nThe Current Situation Index and the Future Expectations Index, both fell\nsubstantially. These indices gauge people\u2019s perceptions about employment, price\nlevel, income, spending, and the overall economic situation. <\/p>\n\n\n\n
Life has never\nbeen more uncertain for employees, with a pay cut or job loss always looming\naround the corner. Even for those who\nhave some stability and job security, there is no way to tell when their jobs\nwill require a physical presence in the workplace again. Renters have more flexibility in that regard,\nas they can easily move for a new job to get a pay raise. Or they can move to a\nless expensive neighborhood if funds are running low. <\/p>\n\n\n\n
A job loss or\npay cut might even drive homeowners to sell the assets in their retirement\naccounts to pay the mortgage. They may even have to sell these assets at their\nlowest value, which can be a grave financial mistake. During the Great\nRecession, the worst-hit households were those who lost their jobs but still\nhad to pay the mortgage on their homes. Whereas renters simply moved to cheaper\nplaces.<\/p>\n\n\n\n
Additional\nRead:<\/strong> 5\nReasons to get Home Loans in 2020<\/a><\/p>\n\n\n\n In an online\nevent organized by Naredco in June, the Union Railways and Commerce Minister,\nPiyush Goyal was reportedly asking builders to clear unsold units by slashing\nthe prices. Statements like this are setting unrealistic expectations among\nbuyers. Experts advise buyers to not read too much into Goyal\u2019s statement. The\ncomment was contextual and should be treated as hard-lined guidance on price\ncuts. An imbalance in the debt-equity ratio is nothing new among developers.\nThe comment was directed towards overleveraged developers, asking them to not\nseek further debt but instead to expedite sales by rationalizing prices. Prices\nmay drop only in places where there is oversupply along with weaker\nfundamentals. But in preferred locations where quality projects are being\nundertaken by developers who are not stressed, there may be no revision in\nprices.<\/p>\n\n\n\n But if you are\nstill convinced that this is the right time to buy a house, at least consider\nthe following tips before you buy.<\/p>\n\n\n\n Additional\nRead:<\/strong> Income\nTax Benefits on Home Loan for the Year 2020<\/a><\/p>\n\n\n\n For home loans at attractive interest rates and minimal documentation, visit Tata Capital. With years of experience in the industry and dedicated after-sales services and support, Tata Capital is the right home loan<\/a> provider for you. <\/p>\n\n\n\n Visit our website to assess your home loan eligibility<\/a> and use our home loan EMI calculator<\/a>. <\/p>\n\n\n\nNo Uniformity in Prices <\/strong><\/h2>\n\n\n\n
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