There is a huge inventory of unsold stock and it continues to pile up. The realtors have stopped making major investments in developing new projects and concentrates in selling the unsold inventory.
The residential developers have been offering various schemes to entice fence-sitters. Here is a detailed explanation of some of the popular schemes.
12 or 24 or 42 months interest waiver:
A bank loan and registration of the property is compulsory under this scheme. Under this scheme, a buyer is exempted from paying his equated monthly instalments (EMIs) for a said period of time. He gets to take possession of the space and can wait for this period before starting repayment. One should not be lured by the attractiveness of the scheme as it does have some thorns underneath. The interest rate on the amount after the waiver period is usually a lot higher than the current bank rate and the buyer ends up paying at least 60% more the amount loaned.
Subvention Schemes:
Also known as 20:80/ 10:90:10/ 8:92/ 5:95 Schemes buyers have the comfort of making a payment equivalent to the smallest number of the ratio and the rest is funded by a bank. The loan is paid back after possession or after a mentioned moratorium as mentioned by the developer. In a variant of the above scheme, clients pay 5-10% of their own funds, and the financial institutions lends up to 70% of the amount, which is construction-linked. The balance 20% is contributed by the buyer, but EMIs start immediately upon disbursement of the loan. They remain a good selling tactic for developers; more so in areas with an over-supply of units in affordable projects.
Subvention scheme without bank funding:
Also known as the 20:80 scheme a buyer need to pay 19.9% of the total contribution and can pay the rest 80% on possession or after a time period as mentioned by the developer. Registration may or may not be compulsory in these projects.
This scheme appeals to investors and buyers not requiring bank loans. It makes good sense for them to book and secure a property under this scheme, which would not be available by the time the project, reaches completion. They can also expect appreciation in prices by the time of possession
Lower Interest rate for the first 2 to 3 years:
Under this scheme the buyers get a reduction in interest rate for the first 2 to 3 years. Again, buyers need to ascertain the interest rates applicable after the two-three year period. The catch here is that the banks could charge at prevalent market rates after the initial period. This amount may inflate the EMIs far higher than the borrower expected.
Semi/Fully-Furnished Flats
This is another popular trick where the developers offer flats with white goods or a pre installed modular kitchen. This is mainly used to lure in end users or budget segment buyers. The supply is high in such areas, and sales can be accelerated in projects offering these additional amenities.
Guaranteed Rentals by builders For 2-3 Years
This scheme is a true example of how developers disguise discounts. Developers offer guaranteed rentals for two to three years, either until possession or post-possession. This is a scheme meant to attract investors whose buying purpose is purely for investment and not for end use. This scheme is offered only by a few builders and it has been noted that the lump-sum amount of 24-36 monthly rentals is actually a discount that the developers give to their customers.
Is Delhi-NCR real estate moving sluggish
If the recent trends in real estate market in Delhi are to be believed, there is a significant dip in the units sold in the capital and NCR in the last 18 months. The sluggish trend has been whistled by lack of incentives from the administration which is focussing on clearing infrastructure road blocks rather than giving green signal to new projects. With paper works in the backlog, new projects in Delhi are at pause, at least for the rest of the year 2015.
Tips for new residents in Panvel to understand their locale better
Panvel has seen a major transformation from a sleepy suburb to a satellite town and finally to a full-fledged city. The growing population willing to reside in the Mumbai MMR region, the shortage of adequate real estate destinations in Mumbai region has made investors and buyers look at Panvel as their best option. Panvel was famous from its lush green surroundings and farm houses. With changing times and inflow of population there are abundant new projects available in Panvel for investors and buyers alike.
Looking for a green living space in Zirkapur Here are options
Zirakpur located near Chandigarh and part of the tri city comprising of Chandigarh, and Mohali is one of the most popular real estate destinations. While Mohali and Chandigarh investors have had the luxury of investing in properties located closer to nature with lush green belts and parks, Zirakpur residents often faced concrete jungles.
