"I'll wait till my next increment." "The rates will dip further." "Maybe next year."
"I'll wait till my next increment." "The rates will dip further." "Maybe next year." If these have been your excuses for not buying a home, you need to ditch them soon. Your increment isn't going to happen this year and the rates might not get better than this. So if you want to buy a home, there's no time like now. Here's why:
>>u00a0Rates are lower: Property rates have never been as low as they are now. Says Dharmesh Jain, MD, Nirmal Lifestyles, "Prices have dipped by a good 10-20 percent. There has been a pent up demand since the last one year and finally rates have come down. They might begin to rise again if there is a lot of activity in the market. So I think, if you're a serious buyer, this is the right time to invest in a house, as I don't see the rates falling
further."
However some areas have not seen such a dramatic drop in prices. Says Bharat Ludhani, director, Evershine Builders, "The rates in areas between Mira Road to Virar have not changed too drastically. The land prices and construction costs in these areas don't leave too much room for a further dip in prices. But yes, other areas have indeed seen a substantial dip."
>>u00a0Builders are negotiating / offering discounts: Yes you heard right, builders are willingly negotiating with prospective home-buyers. Those who aren't, are offering attractive discounts. Says Jain, "Some buyers have a knack for bargaining. Those who don't however, stand to lose. Hence it makes sense for builders to offer discounts instead." So if your negotiation powers aren't too strong, you might want to check out the schemes and discounts offered by builders. Though developers clam up when asked up to what percentage buyers can negotiate, a source tells us that in Navi Mumbai the figure is about 15-20 percent while in South Mumbai it is as high as 30 percent. You can safely go up to 20 percent in areas like Bandra and Andheri. Shailesh Sanghvi, director Sanghvi Group says, "Owing to the cash crunch, developers are under immense pressure and are trying every trick in the book to fund their future projects." Hence they're offering attractive discounts to entice buyers to their projects.
Sanghvi Group is slashing the rates of their Mira Road projects by upto Rs 5 lakh. The offer is valid on their three new constructions namely Sanghvi Nagar, Sanghvi Park and Sanghvi Complex.
>>u00a0Interest rates are lower: It really seems to be party time where home loan rates are concerned. Though getting a home loan was always easy, paying it off wasn't. Starting from January, banks have marginally slashed their interest rates.
For a 20-year loan below Rs 20 lakh, the interest rate for a floating loan would vary between 10 to 16 percent.u00a0 Sanghvi feels that the rates might drop further. "With fears of the Indian economy slipping into deflation, the interest rates are expected to fall further. This is reason enough for home-buyers to invest in a home."
>>u00a0Speculators are out: Since, no one has money to squander, investors are out of the race, only serious home-buyers are house hunting right now. So, you have a wide array of properties available to you. Since there are lesser takers, you have more choices to explore. Trust us, this doesn't happen too often.
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