[mayank0782]

Need some advice here. I am in the middle of finalizing a property(apartment) deal which is for my residential purpose and not an investment as I am renting currently. The deal started more than a month ago when Coronavirus was not that widespread. Is it safe to go ahead with the deal ? Any long term potential impacts on real estate which I should be worried about ?

[hserus]

Originally Posted by mayank0782

Need some advice here. I am in the middle of finalizing a property(apartment) deal which is for my residential purpose and not an investment as I am renting currently. The deal started more than a month ago when Coronavirus was not that widespread. Is it safe to go ahead with the deal ? Any long term potential impacts on real estate which I should be worried about ?

I am in the same boat but I already paid 2 instalments to the builder :(

The property is set to be finished around the end of next year, I am not sure what sort of delay Coronavirus is going to introduce into all this.

No intention of paying any more to the builder till they report further progress on the building and anyway the sale agreement says x amount to be paid at various stages of construction, so that's all per contract.

[mayank0782]

Originally Posted by hserus

I am in the same boat but I already paid 2 instalments to the builder :(

The property is set to be finished around the end of next year, I am not sure what sort of delay Coronavirus is going to introduce into all this.

No intention of paying any more to the builder till they report further progress on the building and anyway the sale agreement says x amount to be paid at various stages of construction, so that's all per contract.

Well in my case, its a ready to move apartment. Not really sure what should be done.

[hserus]

Originally Posted by mayank0782

Well in my case, its a ready to move apartment. Not really sure what should be done.

If you are buying it for your own use + you have the money in hand for it, and you need it rather than want it (that is, must have rather than nice to have), then it is not an investment. Go ahead with the deal and forget about it.

[KungFuPanda]

I am from the hospitality industry, and we are in talks with Real Estate companies that own our hotels. Builders have no money, so chances are that you should be able to strike a better deal by waiting for a bit.

[hserus]

Originally Posted by KungFuPanda

I am from the hospitality industry, and we are in talks with Real Estate companies that own our hotels. Builders have no money, so chances are that you should be able to strike a better deal by waiting for a bit.

Depends if you are buying from a builder or direct owner. Resale flats will generally operate under different constraints.

[GTO]

Mayank, am sure a couple of other BHPians are in the same situation. Moving post to new thread in case this discussion helps someone.

[speedmiester]

Originally Posted by mayank0782

Need some advice here. I am in the middle of finalizing a property(apartment) deal which is for my residential purpose and not an investment as I am renting currently. The deal started more than a month ago when Coronavirus was not that widespread. Is it safe to go ahead with the deal ? Any long term potential impacts on real estate which I should be worried about ?

Hi Mayank,
I just registered an apartment in Mysore this Wednesday. The reason I went ahead with the purchase is because this is for my self use. My parents will move to the apartment.
If it is not a major burden on your financials and you are looking for self use for the foreseeable future please go ahead with it.
Keep in mind, there will be slowdown in the real estate segment as with other industry, it might take 3-5 years time frame for things to settle down.

[MDED]

I am also sailing in the same boat and confused whether to go ahead with the proposed land deal from a reputed builder in Bangalore City. I have paid booking amount and agreement amount and on or before April 14, the remaining sale amount has to be paid. It's a plot and not so far from city and this purchase is as an investment for me. I am into transferable job and in future may want to construct my own house on this plot. The layout is plotted one with security. Do I need to worry? My timelines are close to a decade or more!

[mayank0782]

Originally Posted by speedmiester

Hi Mayank,
If it is not a major burden on your financials and you are looking for self use for the foreseeable future please go ahead with it.
Keep in mind, there will be slowdown in the real estate segment as with other industry, it might take 3-5 years time frame for things to settle down.

Yes I am buying it to actually live in the apartment for long term so not worried about any short term blips in the market.

[vkochar]

Wait for 2 - 4 months. Let the dust settle on this. You will find a huge amount of people ready to dump properties not being used to liquidate.

Businesses are going to suffer and there will be closures. With closures all unnecessary investments will need to be liquidated.

Expect a lot foreign offices to close shop and exit. Its happening while I speak. I hate to say this but the Virus is scary and we are not even remotely close to reality.

Wait - you will thank me later.

[tj123]

I would say hold on for now, we in India are underestimating the power of Covid 19. If not controlled effectively and decisively it can have massive impact on our society and economy at large, nothing short of catastrophic. The overall economy can go into a depression , leading to massive layoffs and economic slow down. I dont want to sound like an alarmist, but the economic shock may take quite a while to recover. Hence sinking large amounts at this time may not be a good idea as asset classes may depreciate sooner than we think, look at crude oil, stocks, gold etc.

Hope Government take strict action to lock down impacted areas and stem this pandemic. Also hope and pray that we get a vaccine to control it.

[anandhsub]

I had also booked an under construction apartment in December and I am sure the value is a lot lower now. I am just taking solace in the fact that I had to liquidate more than half of my equity savings for the down payment and hence was sheltered a bit from the market crash. My direct contact with the builder says they have enough cash flow and it shouldn't affect the construction pace but you never know. Any way my RERA date is only Oct 2022 so not too concerned at the moment.

Don't have much in terms of advice apart from negotiate hard. Am sure u can get atleast another 5-10% off in this environment.

[roy_libran]

Originally Posted by vkochar

Wait for 2 - 4 months. Let the dust settle on this.......I hate to say this but the Virus is scary and we are not even remotely close to reality.

I completely echo this. Just wait for now. Let us see the bottom of this thing first, for our country. Cash is king right now, so hold on to your cash.

[Durango Dude]

Stay in the rental; real estate will be the first to crash. Real estate is a mirage and realtors are selling this mirage: closer you go to the mirage the farther it moves away from you..