If you have identified a suitable property and have the means to take the plunge, you should do so now. A deferred decision might mean forgoing the best price.
The realty market is showing signs of revival again. With prices rationalizing in many pockets across the country and interest rates finally conducive to taking a home loan, the dream house is now affordable for a significant corpus of homebuyers. This is no longer the annus horribilis for property buyers. So those who have identified a suitable property and have the financial means to take the plunge should do so now. A deferred decision might mean passing over the best price. Or as they say, “Tomorrow will be too late, it’s now or never.”
Realty prices jumped to unrealistic levels between 2003 and 2007. The rise in interest rates and the global financial crisis resulted in transactions virtually grounding to a halt adding to the pain. Elections last month have improved sentiment significantly giving the much-needed confidence to buyers. Also, the recently launched projects with repackaged pricing have instilled hope among prospective home buyers, a majority of them end users. Those waiting in the wings are now ready to close the deal, thanks largely to attractive pricing and affordable projects. The end of pain is near!
THE THAW HAS SET IN
The end-user is back in business and customer is king once again. The slowdown has forced developers to correctly identify end-user needs and reposition products keeping affordability in mind. They are customizing products for buyers and targeting across segments instead of merely looking at high-end housing. On the platter are new launches, properties under construction for which possession is due in the next 3-9 months and ready-to-move-in homes in the secondary market. The choice entirely depends on a buyer’s investment appetite and his needs. Right pricing has been the key to the positive response received for several new launches recently. These have been launched across the country and their prices range from Rs 10 lakh to Rs 30 lakh. Affordable housing is the flavor of the year and accounts for around 90 per cent of the new projects being launched. Those sitting on the fence are now faced with the right product mix and price points and are, therefore, more than eager to get off now.
Most of these new launches in the affordable category are up for delivery in 2011 and 2012, years that will see the real estate growth story bouncing back at realistic levels. A gaze into the crystal ball reveals the following truths confronting the realty sector then – a movement towards a landscape where supply will be aligned to prevalent demand, a capital appreciation of 10-15 per cent and a distinctive shift to Tier II and Tier III cities.
CASHING ON THE OPPORTUNITY
The consumer today is willing to take the risk of timely construction thanks to the “good price and a good opportunity” on offer. If a buyer signs in for a brand new launch by a builder of repute, he can expect reasonable returns in the next few years as the market would be up and moving by the time he gets possession. A new launch would also offer better rates and terms such as a construction linked payment plan or payment of EMIs after possession.
TOUCH AND FEEL
Secondary stock (re-sale stock in ready buildings) is largely an end-user market and decisions are driven mainly by location preference. If the purchaser zeroes on a particular loacation, he is likely to opt for the product even at slightly premium rates.
The options may be limited but the comfort level is slightly higher for this segment as there is a touch-and-feel factor which lends greater confidence and any ambiguity with regard to possession being delayed is ruled out.
Other options are unsold stock that can be a good option if one can get a other factors consultant such as track record and reputation of the developer. The homebuyer never had it so good. For the times surely, “they are a changin’!”
CHECKLIST
IF GOING FOR PRIMARY SALE CHECK:
Ø Credentials of the developer
Ø Track record of earlier projects delivered
Ø Payment plan to suit ones financial position
Ø Special offers which a developer is ready to give
Ø One’s own requirement for the property – move in immediately or wait for the project to be delivered
Ø Layout plan and area as per ones own requirements
Ø Location of project
Ø Development of neighborhood and potential for escalation
IF YOU ARE GOING FOR SECONDARY SALE CHECK:
Ø Location and neighborhood where the property is located
Ø Title search-establishing ownership details
Ø Get confirmation on any encumbrances on the property
Ø Age of property
Ø Status of construction quality
Ø Understand why the current owner is selling the property
Ø Electricity load available
Ø Area specifications to suit your requirements
Ø Mode of payment acceptable by the seller
Ø Whether one can get a loan on the property
EDITOR’S NOTE
Greetings potential home buyers. The past few months have been extremely trying for both developers, property sellers as well as buyers. The global economic crutch has bit deeply and made many reconsider their development or purchase plans.
However the market is now turning around and everything points to this being the right time to buy.
HT Estates is proud to bring you this special edition of Hot New Properties in Delhi and NCR- a compendium of ready-to-move-in and upcoming residential projects so that you have a range of options before you to help guide your purchase. The profiles of new developments covered in this special edition have been sourced directly from the developers and Hindustan Times bears no responsibility for the information contained in the advertorials in this special issue.
Courtesy: - HT Estates dt: - 13th June 2009
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