Come October and entire India reels into festive mode. Starting from Navratra stretching up to Christmas and New Years, the festive season is celebrated with full galore across nation. These festivals not only bring joy to families and children, companies and business corporations too encash the season to limits. Consumer durables, food and beverages, home appliances, electronics and gadgets, clothing and apparels etc. wait for this period to meet their yearly targets. There is one more sector which eagerly waits for festive seasons for sales. Yes, the real estate sector.
Every hoarding, each radio jingle and all weekly newspaper supplements are full of schemes and discount offers by one or the other real estate developer. Companies who keep silent the entire year, launches their new projects during this period. Some are offering free cars, some are giving diamond rings and some are offering heavy discounts. Some have gone to the extent of offering one plus one homes! Entire real estate is on sale. Well, it raises one concern, why some much push during festive seasons!
People always seek divine blessings before any big investment. Buying a home is one such occasion when God’s grace is highly sought by. The entire festive season is about worshiping Gods and seeking their blessings and therefore is considered auspicious for such investments like buying a home or making Grihapravesh. It is this psychology that the developers play with and bring on offer multiple lucrative schemes to lure the buyers. Developers know that even a decent monetary discount would encourage people make their decisions. Adding those discounts with freebies appear blessings in disguise for the buyers.
Is it a trap for the buyers! Well, to some extent yes it is. A project launched in the months of May or June at a premium of 25% is put on discount of 15% in festive season. The effective price still remain at a 10% premium for the developer. At the same time, he gets off his unsold inventories left during the launch. Moreover, people generally overlooks the features, specifications and location and tend to fall for discount and freebies. Interestingly, these schemes are seldom put on projects which are completed or nearing completion. Clearly, a developer eyes the fund flow to commence construction. Borrowing that fund from a bank or market may cost him as huge as 20-25%. It, therefore makes sense to get that fund from buyer and offer him a discount of 15%. Quite an intelligent deal!
Buying properties during festive seasons has been an ritual among Indians. There is no harm in doing so. All that is required is to be a little more careful while choosing the property. Make sure you keep into consideration following points:
1. Crosscheck thoroughly about the date of launch and date of completion.
2. Read the sale deed carefully. Give extra attention to clauses like delayed penalty.
3. Negotiate hard, its a buyers market.
4. Crosscheck the developer’s track record. Consult previous buyers. Make sure the project has all the necessary approvals in place.
5. If possible, avoid brokers and middlemen. Deal directly, it benefits in the long run.
Festivals are meant to enjoy the life. One should never regret a decision made during these days. Therefore, be careful and don’t fall in trap.