Lockdown Diaries…How Fortunate Was I To Have My Own Home during Covid 19 Pandemic

The benefits of homeownership just can’t be replaced with renting. The Tenant-Landlord relation is quite fragile and could be rocky, even in good times. The COVID 19 pandemic aftermath has strained it even further. While buying a house is a challenging affair, there are benefits of having a home. And nothing but this COVID 19 pandemic taught me this better.

In Metros and Tier-I cities the rents are exorbitant and you end up paying a little less than half of your salary into rent. Pay-cuts, job-losses are the order of the day; individuals are struggling to pay huge rents. When I look around and think of the current scenario, I comfortably sit back and pat myself on the back fordeciding to own a home some time back. COVID 19 pandemic has taught me how important it is to have a roof over my head which is my own. While huge rentals appear to be the crucial reason why I decided to buy a home, this pandemic made me introspect how else I have been benefitting being a home owner; something that never really occurred to me before.

 How I benefitted as home owner in this pandemic

1. No Rental Worries/Landlord Issues:

Now that I have a home of my own, I have the control. There are no hassles of dealing with the landlord. In these times of financial instability, job uncertainty, job loss, pay-cuts, paying rent seems a huge burden.  When I get to talk to them and listen to their grievances I feel very fortunate that I am sitting in my placewithout having to pay any rent hikes and having made an asset for a lifetime. Given this scenario, buying a property during pandemic may not sound as an intelligent however as you read through you would realize it is an opportune time to invest in one.

I am based in Pune and used to stay in the city paying huge rent. Enlightened by a few friends I decided to buy a property in Pune suburbs which now I boast about to my friends. That was one wise decision that changed the way I saved money too.

2. No Compromise on Living

Since rent is an expense and we like to reduce expenditure, I compromised several times on several aspects such as location, size and amenities when I stayed in rented accommodations. When I bought my house I chose a property that met my expectations. When buying new apartments you may style it on your own, decide the location and amenities that fit your requirements and don’t pinch my pocket.

3. Stable Monthly Payouts (EMIs)

I can sit back and be rest assured that there’s a stipulated amount that I need to pay every month for an asset that I will own. There’s no whimsical rent hike (renewal of a lease agreement). The Govt. has declared a six month moratorium for loan repayment, so depending on my liquidity status I can choose to pay the EMI or defer it.The stable monthly payments that come with owning a home can provide some great peace of mind as it makes it easier to create a predictable monthly budget.

Besides having my own home there are no fear and anxiety that there could be an untimely termination of the lease agreement by the landlord, the hassle of renewing the rent agreement every year and renegotiating on rent repeatedly.

4. Opportunity To Build Equity/Asset

One of the great advantages of home ownership is the opportunity to build equity; equity in real estate is the probable market value of a home excluding mortgages. Instead of paying rent which is a pure expenditure, I pay the home loan EMI and have built my own asset. Effectively, with every EMI that you pay, your equity in your home goes up. Moreover you build an asset for a lifetime

5. Tax Advantages

In these times when liquidity is a major concern, I will be able to save some money while availing all tax advantages that come with my home loan (on the Principal & Interest Amount). The exempted amount will add to my savings. In these gloomy times every saved penny counts.

6. Stability in Life, Stronger Social Ties

Tenants usually do not get as much respect from their neighbours as they deserve, primarily because it is known that they would not stick around for long. Homeownership has givenme a platform to connect with my neighbours. In these trying times, my family and I can depend on them to and we are better prepared to brace any contingency; my neighbours are my support systems. Social Security is the biggest benefit of having an own home.

For those of you who still don’t own a home and are shelling out huge amounts on rentals, think again. The lending rates are low (good time to opt for Fixed Loan rate) and developers are offering various options on payment terms too.

In case you are wary about picking an under construction project, there are quite a few ready to move in options in various projects to choose from. When the developer has good track record of project delivery, quality construction you may go ahead and invest in their projects. One such developer is Namrata Group having various projects in top investment places in Pune. So if you already are not a home-owner, it is a good time to check out various residential projects in Pune.