With the festive season knocking on the door you must be expecting a fall in property rates. Like always, there will be a sudden tide of discounts in the market to attract more customers. The brokers will introduce all kinds of schemes to trap you; which is just another way of making money. They are just trying to sail through the current market situation so beware of the following discounts they offer.
Soft Launch offers
Soft launch discounts are offered before the project is officially launched. Initially most of the permissions or approvals are not in place and possession date can be easily pushed back. Moreover the bank will not grant you any loan as banks take on customers only after conducting due diligence which is not possible in case of a soft launch. Sometimes the proposed building plan changes or the promised amenities are missing.
Keep in mind
People who are looking for a quick buck can invest in such projects. Once the developer officially launches the project, the rates go up. So a person who invests at the soft launch stage can make a profit by selling his property either to a new investor or the developer himself. In case you are looking for a house to live in then soft launch offers are a big ‘NO’ for you.
EMI sharing scheme
Developers are offering ‘no EMI (equated monthly instalment)’ or ‘EMI sharing’ schemes in which buyers have to pay a part of the price at the time of booking the property. The developer ties up with lenders to provide them loans and bears the interest cost. This scheme helps developers generate cash flow as they receive 100 per cent payment upfront. Generally, the buyer has to pay 20 per cent of the full amount; the bank finances the rest.
Keep in mind
Check with the builder, if he will pay the interest at a pre-determined rate. If this is the case then the liability for any increase in rate would be on you. Try to bargain with the builder to extend the tenure of the scheme till possession as this keeps a pressure on the builder to complete the project on time since he is paying the interest till then.
Freebies and Gifts
With the economic slowdown the developers want to sell their unsold inventory by using innovative payment structures and discounts. They will offer incentives like free gifts, discount on the basic sale price, free EMIs, lucky draws, waiving off extra charges or processing fee etc. Most of these options appear tempting, but as you go deeper, you’ll discover that they are riddled with traps.
Keep in mind
Some developers offer parking lots for free, but actually add this to the cost of the house by increasing the price of the super built-up area. So, in reality, you don’t get any real benefit. Compare the price of the property to similar ones and if there isn’t much of a difference then go for it. If the builder is ready to pay the stamp duty and registration costs it’s your benefit. In case of other things, insist on a cash discount rather than the freebies.
Developers construct a house temporarily and display it for the clients. This helps them see how their flat will look like after construction. The developer adds a lot of amenities including high quality tiles, wooden flooring, superior quality paints and imported sanitary and electrical fittings.
Keep in mind
Sample flats are often a trick to fool you as the amenities they present may not be a part of the actual property. In case of small-sized flats, the builder adds a lot of bright lighting to make the property look bigger and more spacious than it actually is.
So before buying a property especially during the festive season do keep all these things in mind and do not trap yourself in any kind of discount or scheme offers. For further queries contact us at email@example.com