Housing loan interest rates cost a significant portion of the income of the homebuyer. Hence, they play a vital role in the home buying process. The reduction in interest rates impacts the cost of homebuyers positively and is the most feasible time for them to buy their dream home. Let us look at the positive aspects that can assist you in taking advantage of the opportunity to purchase a home loan with a lower interest rate.
Improves Affordability
Home loan interest rates are one of the key factors to affordability. With right pricing and sizing of homes, the home loan interest rates increase the affordability ratio of homebuyers. This affordable synergy led to the revival of the real estate housing market. According to the JLL report Q2 2022, the residential market recorded sales of over 53,000 units in Q2 2022, which is an increase of 171% as compared to Q2 2021 across the top 7 cities, which demonstrates that affordability has increased post-pandemic and buyers’ confidence is coming back to the market.
Multiple Projects Options
The Indian housing market saw an increasing graph in new launches post the pandemic. The JLL Q2 2022 report recorded an increase of 6% q-o-q and 135% y-o-y in new launches. With an ever-increasing number of new launches, homebuyers get multiple project options to evaluate and compare the benefits, amenities, and pricing of all the available projects. Besides, these newly launched projects also provide early bird discounts and enable you to get the best deals. Based on your preference, you can shortlist the property and accordingly avail a huge discount.
Upgrade your choices
The low rate of interest offers you an opportunity to move out of your affordable zone and aspire to a bigger home. The low-interest rate helps you get a bigger amount of loan sanctioned to buy a bigger and more luxurious home, whereas you can also choose to save that money and invest in the policies. However, buying a property is an asset, and the capital value will continue to increase. Based on JLL Q2 2022 report, the residential sales in the INR 1.5 crore plus price tag increased by over 270% y-o-y. The increased residential sales in the premium category indicate rising demand for bigger homes along with buyer confidence returning.
So now, when the rate of interest reduces, take your chance to buy a bigger and more luxurious home. Should you have any queries, connect with our real estate expert.
