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.