Prospective property buyers have never had it so good before. Property rates that dropped considerably have more-or-less stabilised in most regions now. The chances of further price erosions in real estates are bleak. It is more affordable to buy property now besides the low finance rates on housing loans which has dipped to 12-year lows. The additional tax concessions on such loans make it all the more attractive for property buyersThere is abundant supply of good quality dwellings, at least in the metros and nearby towns. To top it all, housing companies are now devising marketing schemes to push up sales to give a better deal for buyers.Several initiatives have been put forth by housing companies that mainly target first-time buyers or those contemplating to move into a new dwelling unit after selling-off their existing ones. A number of these companies have tied up with housing finance providers and have been offering sops like reduced or exemption of service charges on housing loans. Some builders have gone further, offering freebies like refrigerators, colour televisions, fans and the like to attract buyers. Only a few have actually targeted investors, who were responsible for the real estate boom till the early nineties.
Perhaps the assumption is that having burnt their fingers in the aftermath that followed the boom, investors would be far than willing to buy properties.
This has, however, not deterred the Mumbai-based La Tim Lifestyle & Resorts from launching its "Milestone Millennium Mega Offer". The company has drawn up plans to set up a convention centre adjacent to its existing housing project called "Milestone" at Panvel in New Bombay. The centre will have a capacity to serve 500 people and in order to take care of their lodging requirements. The company has designed a unique offering, it will construct new buildings in the existing complex, each comprising apartments of sizes varying from 314 sq ft to 522 sq ft.
The apartments, costs of which vary between Rs 2 lakh and 3.4 lakh, will be offered to investors willing to cough up an initial booking amount of Rs 25,000 and a subsequent instalment of an equal amount six months later. For the balance amount, a housing loan can be availed of subject to the terms and conditions of the respective housing finance company. The investor would have to pay the monthly instalments on the loan only for the first two years if he allows the company exclusive possession of the apartment for the loan period. The company would use the apartment to serve the lodging needs for its convention centre and would pay the monthly instalments relating to the loan till it possesses the apartment. The ownership of the apartment would nevertheless, vest with the investor. Although such an arrangement appears to be a win-win situation both of the company and the prospective investor (who in any case would not have put the apartment to immediate use), it remains to be seen whether investors will buythe argument.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.