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5 Reasons to Buy Your Dream Home This Festive Season

Most people buy a home during the festive season as it is considered auspicious. Another reason for people to wait so long to strike a deal is the discounts and offers by real estate companies and home financing companies. However, considering that COVID 19 has disrupted most people’s lives, one cannot help but wonder if this is the right time buy a home?

In the past few months, due to volatile and underperforming market funds, the need for a stable asset class has increased in the market, making home purchase a better investment option. Also, the residential real estate industry is currently at its peak with an increase in the buyer’s market. Other reasons why this might be a good time to buy your dream home is given as below:

Home Loans at Record Low Interest Rates

Floating rate home loans are linked to external benchmark rates such as repo rate, which the Reserve Bank of India (RBI) has reduced several times causing home loan rates to fall below 7% per annum. The current rates are considerably low considering that a few years ago the housing loan rates were between 8% and 9% per annum. Aspiring homebuyers should not let go off of this opportunity if they were waiting for the right time. Even for existing home loan borrowers, it is a great time to switch to a lender that offers home loans at lower rate of interest.

Savings on Home Loan Interest under PMAY Subsidy

To help people save more on their home loan interest, the government has also extended the date of Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme (PMAY CLSS) for MIG income group till 31 March 2021. So, the people with household income between Rs. 6 lakh to Rs. 18 lakh can now avail the subsidy scheme and save up to Rs. 2.67 lakh on their housing loan interest payout for up to 20 years.

Additional Tax Benefit of Rs. 1.5 Lakh on Home Loan Interest

To boost real estate sector and encourage more people to buy and invest in the residential real estate properties, the government introduced an additional tax benefit of Rs. 1.5 lakh on home loan interest under Section 80EEA of the Income Tax Act 1961. This additional interest deduction is for affordable housing segment and can be claimed by first-time homebuyers buying a house valued up to Rs. 45 lakh.

Better Offers by Real Estate Companies/Builders

Builders and real estate companies dangle the best home offers and discounts during the festive season. Even though the present scenario has affected affordability in the affordable housing segment, the real estate industry along with the government is striving to make home purchase more fruitful for the customers.


Festive season is the right time for potential homebuyers who have been waiting patiently for lower home loan rates and lower real estate prices to buy their dream home. But those looking for investment opportunities must research deeply before making a purchase. Those who aim for capital appreciation might have to wait longer for the prices to rise. But those aiming to generate a steady rental income can avail the above benefits.

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About the Author: Praveen Unnikrishnan

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