Is it a Good Idea to Buy a House in 2021?

Is it a Good Idea to Buy a House in Mumbai in 2021?

The year 2021 has been a ride full of ups and downs, making it an unforgettable one. On one hand, the attack of the coronavirus, the subsequent lockdown and the loss of jobs made life miserable for many, while on the other, we finally managed to come up with a successful vaccine to combat the deadly virus!

As 2021 slowly moves closer to its end, it may be time to learn from the events of this year. Financial security and home ownership is something all of us can aspire for and must achieve as soon as possible, given the recent events. The decision to buy a home in 2021 can help you prepare for any financial contingency in the future and offer you stability and protection against similar adversities.

Still wondering if it is a good idea to buy a house in 2021? Here are four reasons to persuade you.

  • Lucrative home loan deals

    Post Covid-19, several banks and non-banking financial companies (NBFCs) are providing people with low and affordable home loan interests . For example, the State Bank of India reduced the minimum interest rates for home loans from 6.80 per cent in February to 6.70 per cent in March, while the Punjab and Sind Bank lowered the minimum rates 25 bps to 6.65 per cent in March. Given the economic disorder, salary cuts, and more chaos caused by the pandemic, lenders are extending a helping hand to borrowers. You can make the most of this opportunity and buy a home in 2021 to avail of lower interest rates and subsequently pay lower EMIs (equated monthly instalments).
  • Increased time spent at home

    Most offices have shifted to the work from home model. Barring some exceptions, schools and colleges are also largely operating online. This work and study from home way of life is offering people more time to spend at home.
    Hence, having a house that suits your style and taste at this time can offer you comfort, peace of mind, and most of all, the time to truly enjoy your space.
    Real estate developers like Piramal Realty are offering beautiful homes in well-designed residential properties with plenty of open spaces and multiple amenities like gymnasiums, swimming pools, indoor arenas, jogging tracks , banquet halls, and much more.
    2021 can be the perfect time to invest in a home that will enable you to enjoy luxury and comfort, and make priceless memories with your family and loved ones that will last a lifetime.
  • Better financial stability

    Owning a home can be a great financial asset. It can offer you a legacy that you can leave behind for your heirs. It can also be used as a second source of income to generate rent. For example, with so many lucrative work opportunities in the city, if you buy a home in Mumbai, turning it into a source of additional income can be easy.
    According to a report, the impact of the pandemic, coupled with the home loan interest rates at a low of 7% and the stamp duty cuts brought down the real estate prices in 2020. However, the recovery of the residential market in Q1 2021 was better than expected, which means that homebuyers who moved into new homes during the pandemic can expect a reasonable appreciation in the real estate prices.
  • Tax benefits

    Buying a home can provide you with several tax benefits. If you opt for a home loan, you can save up to ₹1.5 lakh on the principal amount under Section 80C of the Income Tax Act, 1961. Additionally, you can also save another ₹2 lakh on the home loan interest under Section 24 of the Income Tax Act, 1961. These tax savings can offer you some financial relief.

To sum it up

The decision to buy a home in 2021 can deliver several benefits to your door, right from better savings to comfort and luxury. So, if you have been wrestling with the idea of buying a home, this may be the right time to do it.

Disclaimer – This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.

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