By Mr. Zulquer Nain VP – NMBPL (New Modern Buildwell Private Limited)
The festive season not only brings new hopes and aspirations for the real estate sector but also for the customers. There are lots of lucrative offers in the markets tempting customers to invest in new homes and offices spaces. From cheaper home loans to luxury gifts and free maintenance for several years, the market is flooded with variety of offers. However, one might wonder, are these offers really something or just gimmicks to lure the customers in investing without gaining any extra benefit. There is a prevailing sentiment in the market that ultimately the cost of any offer or discount is provided by the developer is passed on to the customer. This might be true in some cases, but not in all. Let’s examine what kind of offers are currently available in the market and if they are worth taking a shot at.
Cheaper home loans
The home loan rates are currently among the cheapest in last few years. Some home loans are available in the market at as low as 6.5 per cent rate of interest. Most banks are offering home loans at 6.75 percent. Considering the fact that the home loan rates were available at around 8 to 10 per cent, this is a deal one cannot miss. In terms of the bank offers there cannot be a better time for investors to invest in real estate. Since the customers deal with the bank, where the policies are very consistent, the customer can freely avail these offers.
Offers from developers
Developers also come up with several offers during the festive season. These offers broadly fall under three categories,Cash discounts, free accessories and gifts, and free maintenance offers. While these offers might look very lucrative, they are sometimes confusing too.
Cash discounts: Cash discounts are the most attractive offer floated by the developers during the festive season. It implies straight forward deduction in the price of the property. Unless too many confusing terms and conditions are not associated with the discount offer, there shouldn’t be any problem in accepting them. However, before jumping on to any such offer, the investor might also want to check the price history of the property.
Free accessories and gifts: Accessories with each purchase, like modular kitchens, air-conditioners, water-heaters etc are very attractive as they ultimately save the cost for the buyer, however,the buyers must ascertain the quality of these freebies before committing to the deal. Sometimes the builders use cheap low-quality accessories as free gifts with the homes. Such accessories do not solve any purpose for the buyers who ultimately have to spend to get them replaced. The same goes for the other free gifts like cars or other accessories like jewellery or coins.
Free maintenance: Free maintenance for an offer period or free water or electricity can also be very attractive and beneficial offers. However often the decision regarding the maintenance charges and electricity or water fall under the jurisdiction of the resident’s welfare association (RWA) or the local government authorities. Before opting for any such offer, the customers should make sure if the builder or the dealer does have the authority to give these kinds of offers.
Every year the festive season comes with new joy and energy. It is considered the most auspicious time for making new investments and every seller is looking forward to this season. Even the most sluggish sectors gain pace during this time. The market is full of discounts and other offers, however when it comes to availing these offers in real estate, one needs to be extra careful, as real estate investments are generally big and for the long term. The offers too good to be true are generally not true. When an extremely good offer comes, the buyer must scout for all the possible loopholes like the builder’s past record, quality & stage of construction, locality, accessibility and availability of finance.
Corporate Comm India (CCI Newswire)
