A Buyer’s Market
Quality realty across the country is selling at SLASHed rates, with FLEXIBLE repayment schemes. The time is right for the prudent buyer to purchase his dream home.
An integral consideration to factor before taking the big plunge to buy property is this : Is it a seller’s market or a buyer’s market. If the latter is the case — a home buyer must be prompt in capitalising on the market transition and closing a deal before luck runs out. A dearth of factors over the last year, have caused a slump in the sales of real estate in India, especially in the metropolitian cities of Mumbai, Delhi NCR and Bengaluru : a global financial crisis, an overproduction of realty projects that have no takers, building an excess of luxury projects that are far beyond the reach of the common man, and so on.
The silver lining to the dark cloud that eclipses the country’s real-estate fraternity is that developers are willing to sell the properties in their inventory at throwaway prices that provide lucrative oppurtunities to first-time property buyers. To ensure that the inventory stock of projects at least break even, realty developers are introducing lucrative schemes such as the 10:20:70 and the 20:80 scheme. The 20:80 scheme, for instance, lets the buyer pay only 20 per cent of the amount upfront and the developer, in some cases, pays the pre-EMI interest on the loan taken by the buyer for the rest, offering relief to those waiting for an under-construction projects to get ready.
A quick mental calculation will help you to realise that the flexibility that some payments schemes offer may even allow homebuyers an upgrade to larger homes and even expand their budget. Do not hesitate to engage in discussions with the developer. Apart from discounts and payment schemes, they may also be able to cater to your budgets by adding goodwill gestures to close the deal — perhaps a waiver on the car parking charges, home improvement offers such as providing better flooring or a modular kitchen. It is always beneficial to lay your cards on the table and clearly communicate your expectations to the agent. On the flip side of an otherwise ideal scenario, have been reports of project delays, as many developers are struggling to finish projects, when cash flows dry up due to weak sales. Steady cash flows need to come in for timely completion and delivery of projects. As a buyer, you can protect your interests by investing in a reputed real-estate firm and doing a thorough reference check before making any transactions.
Moreover, the recently amended Real Estate Regulatory Bill that protects consumer rights, should prevent similar incidents in the future. For the prudent and cautious buyer, the upcoming months is truly an optimal phase to buy a house that doesn’t pinch your pocket, but also surpasses the home you had visualized, in your wildest dreams.