Festival offers may help to get your own home
The festivity mood has started and will last till end of December. With Diwali round the corner, developers with projects in Delhi/NCR are wooing home buyers with new offers of discounts and package deals. It is the time of the year when people want to make new investments and purchases. To cash in on the sentiment, property developers come up with discounts and schemes to attract buyers, offering freebies such as gold coins, car, holiday trip and modular kitchen. Every year developers come up with new offers and schemes, leaving no stone unturned to lure home buyers and availing maximum benefit from festive season. This is actually the time to which developers look for bumper sales. Real estate developers are also banking upon the festival season, as last few months were quite lean for realty sector.
If we look at some of big offerings in Delhi-NCR market. Among the most common offers this season are free air conditioners in all rooms, modular kitchens, 1-year free maintenance, assured rent for 1-2 years, and no floor rise charges. While affordable housing projects are seeing some interest from buyers, there are few takers in the luxury segment. So, developers of luxury projects, particularly, are offering heavy discounts since sales are sluggish in this segment. Some are offering high-end cars for those who book penthouses, and luxury cars to those who book villas. On another side various builders are providing offers based on GST where GST is being exempted for time being.
Not just developers. Banks and other lenders, too, try to cash in on the festival fervor by giving loans on easy terms. For example, with HDFC Bank recently slashed its base rate by 35 basis points (bps) to 9.35 per cent and other banks likely to follow suit, loans could become cheaper. All this could result in higher sales, usually 20-25 per cent more than the rest of the year, during the season.
To make a better decision ignore offers like televisions, ACs and others, because they would not translate into significant savings. However, the saving on GST is a significant amount. For a property worth Rs 1 crore or more, a saving of 12 per cent means a lot for the buyer. For someone who wants to purchase his first property or get a bigger one, this could be a good time as property prices haven’t gone up sharply in the past few years. As far as possible, avoid under-construction properties.
Look for a property that suits your requirements. Freebies and offers should be incidental to the decision. Look at the project’s location, features and amenities, quality of construction, and the quoted price; and compare these with other options in the vicinity. If the project is at par with peers on all these counts, then offers and freebies make sense. The merits of these offers must be weighed against the more intrinsic values of location, developer’s delivery track record and reputation for quality.