Most people who intend to buy properties are in a dilemma about waiting and watching or going for the kill. Property prices are quite high although sales are not which is why buyers are waiting to see if the price of properties fall or not.
Investing
when you have the power to negotiate
The
momentum in stagnant markets is always missing. Even though it makes sense to
wait for a drop in price, if you come by a property which fits the bill of what
you want, don’t hesitate to buy. Most buyers were speculating prior to the
election which has led to stagnancy in the market. However, house buyers must
understand that this is the ideal time to buy property in order to get a
good deal. With piling inventory, developers are willing to negotiate the
property prices.
When
the real estate market turns out to be sluggish, it is a good time for buyers
to move in. Many developers are willing to negotiate between 5 and 7 percent of
the property price quite unlike active markets where the market is entirely
controlled by sellers. Depending on the brand, buyers can look forward to
festival discounts, well designed packages and free registration aside from
other concessions.
Developers
have already started offering freebies and discounts on their properties which
would increase further as the year closes. The real estate market becomes quite
dynamic during the festive season in India as buyers look forward to getting
discounts and offers on their purchases and developers to sales that have
freebies. Compared to the past 2 years, the festive season spells good sales
this year. Because of lower buyer sentiments, the market has piled on lots of
unsold inventory. Areas such as Gurgaon, Navi Mumbai, Thane, Greater Noida and
Noida are expected to show hefty discounts on the properties available.
The
developers are willing to negotiate with those who want to buy property
this festive season in terms of price rather than offering cars, gold coins and
foreign trips, which were offered in the past 2 years. For example, in the
Delhi NCR region, most of the developers offer Possession Linked Plans or PLPs
as festive offers where numerous schemes of payment are offered such as 10:90,
30:30:30, 30:70 and 25:75 etc. Many developers have given up EMIs till the time
of possession for wooing in customers. Several developers are also looking to
book flats on behalf of those who want to buy property for Rs 1 to 2
lakhs only!
Developers seem to be making a
killing by offering cash discounts as more buyers are inclined towards these
cash discounts over free gifts. Almost
60 percent of house buyers would prefer to buy property in the festive
season if cash discounts are offered on the property. This time is certainly a
good one for buyers to purchase property because builders are willing to
negotiate on the price of the property. Not only do buyers have a good chance
of saving a hefty amount but also the freedom to choose from wide range of
options because of the adequate supply in the property market. Once the
inventory accumulated is exhausted, prices should increase as buyer sentiments
are expected to grow. Therefore, you should certainly consider buying
properties at this time of the year, when the market is slow. You should
research enough prior to targeting a particular project because you have a good
chance of getting great property.
Quality Properties are sold in a Slow
Market
When the market is in the hands of
sellers, almost anything is sold. At a time when everyone indulges in purchase
of property, it would be hard to resist. However, when the market is slow,
buyers have to be cautious about their choices and certainly judge the quality
of a project before purchasing it. At a time when demand is high, builders
seldom follow up with buyers.
What most buyers do not realize is
that branding of a project begins right after the stage of possession. When you
sell an apartment, you are selling lifestyles and dreams. Therefore builders
must certainly take care to assess the quality that he is supplying buyers with
and therefore must follow up buyers or look into complaints through consumer
grievance cells. At a time when the real estate market is slow, purchasers can
make out easily what is good for their lifestyle and taste.
Real Buyers are Active at all Times
Even though most analysts claim that
real estate markets in cities are stagnant, the story is much different form
that. At all points of time in a market, there are potential vs actual buyers.
The actual buyers are people who have saved a part of their income through the
years and research adequately into properties available. They consider
purchasing decisions about properties for months almost because their savings
would be entirely vested in this. Even though they invest their money wisely,
they do not keep postponing their decision. They simply wait for good deals to
come by.
Actual buyers usually have certain
temptations that get them to the market. A lot of buyers look to purchase
property during the Navratri festival. Even though they decide upon properties
that they want to buy beforehand, they still wait around for good deals to come
by during the festival. During slow markets, mostly investors sit out of the
market because the benefit of purchasing the property is not there. End users
are always active no matter what the market situation is.
Youngsters want quick returns on
investment
Most youngsters nowadays are oriented
towards investment. Instead of putting their money in gold which they consider
as dead investment, they are investing in mutual funds, property and stocks.
Since properties are secure investments, youngsters do not mind putting their
money in them as their value would appreciate in the future. Moreover, realty
prices have increased to a good extent in the past few years. Therefore, if you
wait around for a faster market and right time, you may end up spending more
than what you intended to for your dream home.
