While the most important thing right now is to prevent and control community outbreak in a highly populated country like India, buyers or a seller in the real estate sector should brace for some sluggishness even when this is over.
What investors should know
If you are in the process of purchasing a new property or real estate asset for investment or end-use purpose, you should make a wise choice between ready-to-move-in and under-construction properties. While project delays are imminent and unavoidable, you should have a realistic approach towards it. If you are buying a ready-to-move-in property, you have to know that renting it out may not be possible in the near future. So, the monthly EMI on any home loan, will go out of your savings. Here are more pros and cons of ready-to-move-in and under-construction properties that you should know:
| Ready-to-move-in | Under-construction |
| You will not be able to let out your property in near future, at least till the lockdown is over. | Be realistic and enquire about actual delays in project delivery. |
| You will not be able to register the property, due to the lockdown. | You will not be eligible for the home loan EMI moratorium, if your loan is approved after March 1, 2020. |
| The finishing work (carpentry, furniture, appliance delivery, etc.) can be done only when the lockdown is over. Till then, your money is stuck, if you have paid any advance for the booking. | Under-construction units/projects are at more risk since a liquidity crisis might hit the developer. Moreover, the construction workforce which mostly comprises of migrant workers, have shifted back to villages. |
| If you have invested in a property for self-use, you will not be able to move in, in the near future due to the lockdown, social distancing rules and lack of manpower. This means, you may have to pay rent, as well as EMI for the next few months. | The supply of construction material has been hampered due to the lockdown. This could boost prices in the near future. |
What sellers should know
Due to the prevailing market conditions, sellers who have put their property in the market have to wait longer to liquidate their asset. Here are few things that you can do for using this period to market your property effectively:
Create videos of virtual property tour
To give a more detailed view of your property, you can create a video tour of your property. This can be done with a handheld camera or your smartphone camera with a decent picture quality. You can choose to upload this with your property listing or send it to those who are potential leads.
Use video conferencing for meetings
You can e-meet your potential client to discuss further negotiate the deal. Reach out to the people who might be interested in the property and discuss different prospects of buying your property now.
Rent it out
You can also rent out your property for a short time if keeping it vacant is a problem. You can also lend it to people who are in need right now and can use an accommodation till the situation is back to normal.
Sellers should remember this is not the time for panic selling. You can choose to take a break from the process and start again once the market improves. Story credit: Housing.com
