India is land of festivals where almost every month a festival is being celebrated in some part of the country. These festivals have different significance but what is common is auspiciousness attached with them. Festivals are time for making major investments/purchases in life, ranging broadly from vehicle to ornaments to electronics to clothes, etc. with one of the most significant investments being – Home.
The last quarter of a calendar year is marked with back-to-back festivals in India and thus an array of offers and discounts are available in the market to spoil and overwhelm a homebuyer. But it is imperative to control emotions and weigh all offers. With host of offers and discounts in the market, here is a list of top offers worth exploring and signing up for.
No pre-EMI offers: When one opts for a home loan, funds are disbursed periodically depending on the construction progress and actual EMI starts once the apartment is completed and possession has been taken. For this period an interest component is what a home-buyer has to pay. If you are staying in a rented house, this additional payout is added financial stress. This offer takes off the burden of dual financial stress on a home buyer as developer takes care of it for a pre-decided period of time. Getting such a waive-off is a big relief but please read carefully on the interest rate and make sure it aligns with your home-loan rate (Fixed or floating).
Customised payment plans: In a regular scenario one has to pay a minimum 20 per cent of home cost as down-payment while rest 80 per cent can be availed through a loan. Many a times this 20 per cent is one of the biggest hurdles in buying one’s dream home. Under the scheme this very hurdle is smoothly taken-off by offering options where as low as 5 per cent has to be only paid as down-payment. This is well-linked with the financing partner and thus a smooth transaction is ensured. Most preferred and commonly opted options are 5:80:15 and 10:80:10. The first component expresses down-payment as percentage, followed by home-loan component and finally final settlement at the time nearing completion/ possession. The flexibility offered under this is well received by home-buyers over past many years.
Free Lifestyle installations: Under this offer, one gets a home that is ready to live because all immovable furnishings as wardrobes, storage cabinets and modular kitchen are installed by the developer. These are a must, be it for self-use or for rent and one incurs a substantial cost towards them, getting them free is a straight saving of lakhs.
Assured Rentals: As it states one gets assured pre-decided rental for their property under any circumstances for a pre-decided tenure. This is again a very lucrative and most in demand especially amongst investors and NRIs. If not for end-use, putting your property on rent is a tiresome process and if developer takes it on their head and assures you of a handsome rent then it’s a straight win-win. However, please do a market research of the locality and the prevailing rents in the area to get the best and realistic returns as rentals.
Cash back: Last but not the least! Pure cash returns are always most wanted be it any industry and realty is no different. As a part of this offer, one gets a pre-decided percentage of the payment as pure cash back. The percentages are mostly implied on the down-payment and may range anywhere from 5 per cent to 10 per cent or even higher. The cash back is mostly credited at a later stage which is again pre-decided. Getting cash back for an expense that is inevitable is a definite bonus.
A word of caution
While you finalise on your dream home and avail offer, please take care that these aren’t just marketing gimmicks and actually offer you a good deal. If the offer is on selected units, it is most likely that these units are not selling for various reason, most common non-Vaastu compliance or non-premium units. Another, point to be taken into account is that basic cost of the project is not spruced up for the offer period and you are only made to feel a discount while in reality it is the same. Hence, it is advised that you research on the project price prevailing for past few months as reference.
The market is ripe for home-seekers waiting to own a house for themselves as prices are competitive rather lowest and added advantage is industry’s best and most benefiting offers are being served on a platter. With so much, home-buying could never be any better than this festive time.
The author is Pratik K Mehta, Managing Director, Unishire