Planning to buy property this festive season? You should read this
Festive season is considered an auspicious time to buy property that is why sales are generally higher during the last quarter of the year.
Festive season is considered an auspicious time to buy property that is why sales are generally higher during the last quarter of the year. Developers also dole out various schemes to attract fence-sitters.
There are schemes with developers offering free gift vouchers, discount on base price ranging from Rs 100-200 per sq. ft, gold coins, iPhones etc. and then there are subvention schemes such as 20:80, 10:90:10 and 5:95.
Developers are saddled with high unsold inventory and are under stress for funds to complete existing projects. There has been a very few new launches this year compared to previous years.
Real estate prices of many places have either corrected or remained stagnated at a particular level for the past 2-3 years, this has further increased the pressure on developers to offload the inventory.
Experts say this is a buyer's market. Buyers are spoilt by choice as there are a plethora of products to choose from. Experts also feel that this can be a good time for buyer as they can negotiate harder with the developer for a good bargain.
Shrinivas Rao, CEO-APAC, Vestian, says "Research analysis by us projects that this to be a good time to invest in real estate and anticipates this festive season to be a win-win situation for both the developer & the end- user."
"Prices have corrected in real terms over the past two years. We don't foresee prices falling in near future. However, some developers are offering discounts and offers during festival times (Oct-Nov) and possibly around New Year. Customers could use those to enter at a lower price," says Sunil Mishra, chief business officer, Proptiger.com.
However, they ask the buyers to be vary of the schemes on offer and choose the one carefully
"Real estate is an important, long-term and big-ticket purchase. Buyers should above all focus on the quality of the product on offer - the location, the developer you are buying from and his track record of timely delivery, and the project's specifications," said Mishra.
We recommend that the offer should not be primary criterion of selection for the buyers, he added.
Do a proper research before buying, learn about the various offers available in that area and if you have shortlisted a project, you can negotiate with your developer better.
Since many projects have some offer going on, you can negotiate with your developer on your selected project if that doesn't have an explicit offer.
"The cautious buyer today is no more taken in by developer incentives like 20:80 schemes, free gold coins on purchase, free car parking, holiday vouchers, two wheelers or modular kitchen set ups. Instead pragmatic purchase decisions are based on tax benefits, project specifications and not limited to auspicious calendar dates and vaastu," said Rao
Rao feels real estate investments should be made in ready-to- move in properties or under construction projects with completion dates within the next 2-3 years, he added.