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Some reasons to buy A HOUSE THIS FESTIVE SEASON!

With RERA in place, PMAY subsidies on home loan interest rate, and the festive season in full swing, this could well be one of the most opportune moments to buy one’s home!
Given the cautious buyer sentiment and stagnant property prices, a question is sure to crop up in the minds of home buyers these days: Is this a good time to buy a piece of property?
Experts say that, generally, any time is a good time to buy a house for personal use, keeping in consideration your ability as well as the availability of a product of your choice.However, in times like the present one-when various policy changes have been made, RERA and GST implemented–property has become cheap and there are offers galore from developers. Thus, this could well be one of the most opportune moments to buy one’s home.Some compelling reasons to buy a home:

1 Low Interest Rates:

The past few months have made home-buying relatively economical. “Currently, home loans are at a 10-year low, which is already bringing an upsurge in the market. Though RBI kept the policy rates unchanged, there is a feeling that owing too surplus liquidity in the system and very sluggish credit growth, banks may resort to interest rate cut. If one borrows at variable rate, he can avail the future cut in interest rates. Thus, waiting for rate cut to buy a house is not advisable,“ Manish Gupta, MD of Strategic Group Royal Court, says.

2 Interest Rate Subsidy:

Under the Pradhan Mantri Awas Yojana (PMAY), the government is offering discounts on interest rates in the purchase of one’s first home. The net discount is equivalent to around Rs 2,50,000, which is adjusted in the principal amount up front to buy a house of 1,184 sq ft. This reduces one’s EMI by around Rs 2,200.

3 Low Property Prices:

Over the past two years, there has been a decline in the sales volume. “Many developers have lowered prices in their projects. Also, investors who put money in these projects in Noida Extension are not expecting rates to go up in the near further, and are selling their units at competitive rates in the secondary markets. It’s, thus, a good time for home buyers to bargain hard with the seller and get a better deal,“ says Avadesh Chaudhary, associate director Pocketworth Realty, Noida.

4 Discounts and Freebies:

Eyeing a 4 rebound from a prolonged slump, property developers are betting big on the current festive season. This can be gauged from the fact that a large number of developers have already rolled out a number of attractive schemes in a bid to woo prospective buyers and fence-sitters. With this, home-buying has become more attractive. “Festivals are considered as an auspicious time to invest in a piece of property. Thus, developers offer freebies and lucrative schemes as incentives to  . The key, however, is to ensure that there are no hidden surprises and the offer is clear and transparent. You should always look to invest with developers who have a proven track record, so that there are no unwanted surprises coming your way,“ Pankaj Bansal, director of the M3M Group, says.

5 Regulator in place:

There is no denying the fact that there have been numerous incidents of project delays in the recent past. However, with RERA in place, developers won’t be able to fleece home buyers anymore. You only need to ensure that you are buying your home in a RERA-compliant project, from a trusted builder.

Prices are in fact rock bottom.There are hardly any launches at the current prevailing prices of ready-to-move-in apartments. Developers say unless prices go up, there cannot be any new launches. At the same time, e inventories of unsold units in good ready to move-in projects are likely to be bought out in the next two to three quarters. After that prices may go up.

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With the onset of the festive season, developers are offering a slew of freebies and discounts to lure buyers-but are these as lucrative as they sound and should you buy a flat going by these offers alone?

This is a perfect time to buy your dream flats in Noida Extension. It is Navaratra time, prices are at the lowest level, even lower than the replacement cost.Interest rates on home loan, around 8.35%, are also at a 10-year low and falling further, which will help you in lowering the cost of acquisition further (if you are borrowing at variable rate).

If you are a young property buyer and are going to buy your first house, you can also avail around Rs 2.45 lakh interest subsidies from the government. These subsidies are given upfront and will reduce your total bank loan.

Apart from all these, developers are also betting big on the current festive season to monetize their unsold inventory to raise funds to complete projects. Developers are also hoping for a rebound from a prolonged market slump as the sales pick up.

This can also be gauged from the fact that a large number of developers have already rolled out a number of attractive schemes to woo prospective buyers and fence-sitters. While some developers have started giving discounts on the basic selling price of properties, others are offering gold coins or, even cars, on booking a flat.

They also are offering free car parking and payment of pre-EMIs till the possession is offered. However, are these discounts and offers really as lucrative as they sound and should one buy a flat going by these offers alone?
“With the festival season upon us, it can get difficult for buyers to evaluate the best deal which works in their favour. Thus, it is important to critically evaluate all options and take the necessary precautions before closing a deal this festival season,“ says Avadesh Kumar, associate Partner (Pocketworth Realty) at Noida.

Here are some precautions which a buyer should take before making the final decision in buying property: Negotiate hard: This is a buyers’ market.So, here you should use your skill to negotiate hard. This is the key to get a good price. If you are a serious buyer and ready to close a deal, developers are ready to give you a good deal.

Step 1: While negotiating, do it first without any freebies.

Step 2: Then you compare it with the price of the same with freebies on offer. This will give you a clear idea of the value of freebies being offered by the developer.

Step 3: Next, find out the value of the freebies that are on offer, independently. For example, a gold coin or a 32-inch TV would cost around Rs 30,000 in the market. Similarly, a modular kitchen costs between Rs 1 lakh and Rs 5 lakh, depending on the gadgets and their quality used in that promised kitchen. Similarly, other freebies like car parking, cash discount, and foreign trips have also some value, which you can find out.

Step 4: Finally, compare the value of freebies and the discount on the price of the flat you are getting without any freebies! Take a decision with all these information in hand.

EMI till possession: Many developers ask you to pay only 10-20% upfront. You will have to take loan, but the pre-EMI will be paid by the developer till possession is offered. Such schemes are good options.

Besides, it not only means lowering of the net cost of the house, it also provides you a kind of security of obtaining possession. In this case, too, negotiate on the price front.

Many a time, developers offer payment of EMIs for the first two or three years and not till the possession is offered. So, better check and insist on the payment of EMIs till the possession is offered.

Some developers offer freebies while others may offer direct discounts on the home price or options like waiving off registration charges. Direct discounts work best on the pocket, particularly at a time one is deciding to buy a house–a decision that overstretches one’s pocket.

Compare prices in the festive and no on festive period: Some builders may increase prices during the festive period to shower multiple discounts during this time. Ascertain the actual benefit you get after purchasing the property. Compare the price of a similar flat in other projects in vicinity.