A lot of things have changed in businesses worldwide, in 2021. The real estate market is no different. Additionally, the industry is reeling under the stress of the pandemic. The second and third waves in a few countries have unleashed terror. Supply has been more than demand, as stocks lie ideal. Many people had to defer their plans to buy real estate. And, the few who gathered up the courage to invest have faced many problems.
Factors for a house and land deal like cost, location, size has always been the top priorities for buyers. But now low- interest rates have also entered the list of prerequisites. This is a good sign, as the market can advance and uplift the economy. Moreover, tenants find ownership to be a better option than renting. Many banks and financial institutions have started giving all-time low rates to loan takers. However, you should still keep your fingers crossed about the problems that may come up.
Those who bought real estate from their savings also had a hard time at the very beginning of the year. Most buyers can check out real estate offerings online. The developers also offered walk-through videos to make the prospects familiar with the physical dimensions and interiors of the property.
However, most new home buyers wanted to have the actual feel of the place. Site visits remained a massive problem as everybody wanted to maintain social distancing norms. Additionally, developers who were already counting losses did not want to waste time over window-shoppers. If they found the buyer seriously interested in the property, they only arranged for visits. In doing so, many demanded earnest money for a guarantee.
That became a problem for many as none would like to commit before seeing the place physically. It is currently a buyer’s market, but many buyers still feel shy to visit sites. To date, everyone has been in wait and watch mode. Site visits were risky, as prospective buyers always wanted to touch and feel the walls and interiors. Sanitation may not have been possible due to limited resources. Sellers are still not interested in spending as much on sanitation when already unsold stocks are lying in the inventory.
Lengthy Paper Work
First-time buyers also face the problem of lengthy paperwork and agreements. Although, technology has seeped into various spheres. Physical paperwork is a practice in real estate deals. If you are one of those buyers taking finance, the process becomes lengthier. The buyers have to visit the bank before the finalisation of the loan and also on registration. These are things that still require physical presence. These visits lead to situations where a lot of interactions take place. Most feared such interactions, as they could catch the virus that was still lurking around.
The pandemic’s second and third waves have also delayed projects. Many developers who already invested in real estate landed in trouble owing to delay. Additionally, workers were also unavailable due to restrictions on work in different states. Moreover, the loss of jobs and companies shutting down created panic amongst home loan takers. Under-construction property buyers suffered the most. The EMIs were deducted without the property even reaching completion or at par with living standards. Most of these buyers are still waiting while we are about to step into the new year.
Secondly, sanitation norms and safety guidelines have also been revised, leading to a higher construction cost. So, both the builders and the buyers are at the receiving end in the real estate market in 2021.
Panic Buying Regrets
A particular section of buyers went on to splurge, as some developers gave whopping discounts to release their inventory. The first-timers thought that they would never get such discounts again. Additionally, many buyers did not even see the construction quality and other amenities before putting in their money. The second reason behind this hurry was the massive stamp duty rebates offered by the government to keep the economy afloat. Most buyers bought apartments and houses under pressure.
Now, such buyers are facing many issues, from faulty plumbing to bad neighbours. Additionally, many essential amenities like departmental stores and medicine stores seem out-of-bounds in certain areas. Damp walls show up in several buildings, which developers covered up initially just before the sale. Moreover, many buyers find the commute to be longer than expected due to severe congestion on certain roads leading to the area. Thus, the cost saved is spent on such repairs now.
These are a few of the problems new home buyers face. Moreover, you can find out more from your friends, acquaintances, and family who decided to buy real estate.