Are The Festive Offers On Real Estate Worth Grabbing?

By Adhil Shetty | October 17, 2017

In a bid to clear unsold inventory and attract buyers, real estate players are offering discounts. Take a look at a few points that will help you decide if you should go for the deal.

Are The Festive Offers On Real Estate Worth Grabbing?

The real estate market is abuzz with festive discounts and offers. While discounts are plenty including lowest price flash sales, GST free price, freebies etc, not every offer may work out as a pocket-friendly one in the long-term.

In a bid to clear unsold inventory and attract buyers, real estate players are offering genuine discounts. With buyers willing to wait for the right property at the right price and attractive housing loan interest rates, this festive season offers them a wonderful opportunity to avail the long-awaited benefits.

So if you have been planning to take the real estate plunge this festive season, here are some insights to help you take a wise decision.

Festive Season Realty Sales

Earlier, builders used to announce new projects and initiate bookings during the festive season. But, a huge number of unsold inventories, implementation of RERA and GST along with other factors has changed the realty market dynamics. RERA implementation, for example, calls for only those properties to be sold or advertised that have been registered under the Act. However, properties which are ready to move in are given Occupation Certificates. This year builders are offering ‘ready to move in’ properties under festive deals. So this festive season, while looking for a house for yourself, also look for properties with occupation certificate.

GST Free Property- The Long And Short Of It

The one big advertising pitch this festive season is GST free properties. With a 12% GST applicable on real estate this may sound like a flat 12% discount. GST is applicable only on under construction properties, so if you are opting for a property with an Occupancy Certificate (OC) then a builder cannot project it as a GST-free property. When buying an under construction property compare the pre-OC and post OC prices to know the discount offered by the builder.

Beware Of Freebies

Builders offer freebies like free air conditioners, modular kitchen, gold coins etc during the festive season to woo the customers. Such freebie offers appear to be good, but usually, the price of products are directly or indirectly added to the base price. A better way is to seek a cash discount instead of the freebies on offer to get a more value for money deal.

Flash sales, Cash discounts – The Devil Is In The Details

Cash discounts are a better discount option for you as a buyer.  However, do check the base price of the property to avoid any artificial increase in the base price. Cash discounts may also offer zero registration and stamp duty charges or free car parking with every purchase, but do not take a decision based on such discounts. Flash sales adopted by many realty portals could be avoided as there are fair chances of missing important terms and conditions.

Choose Subvention Plans Carefully

Zero EMI till possession or small amount payment of around 5-7% upfront, and rest on possession are part of many festive offers. Usually, the price of property for buyers opting for such part payment schemes or subvention schemes is higher than those opting for a full payment upfront. Choose a subvention or part payment plan only after ensuring the plan works in your favour in the long run.

Tips before opting for a festive real estate deal

  • Freebies and discounts should not be a prime factor in your purchase decision
  • Don’t overlook the core essentials of quality of construction, price comparison, features and amenities on offer
  • Negotiate freebie discounts for cash discounts for a better deal
  • Opt for RERA registered properties and ensure due diligence of the project and builder.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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