The festive season often influences aspiring homeowners, thanks to its cultural significance and the attractive offers developers roll out. While this period brings plenty of lucrative deals, it’s also a time when buyers can easily get tempted into deals that may not be as beneficial as they seem. Here’s what you need to consider before investing in real estate during this period.
Many homebuyers struggle with the timing of their purchase and tend to wait for the festive season, which in India usually falls between mid-October and mid-November. This period is considered auspicious for investing in assets that generate income, and studies suggest that nearly a third of all real estate transactions in India occur during this time. Beyond being a “favorable” time to buy, the festive season also brings a flood of options, as developers roll out enticing offers to boost third-quarter sales.
However, while these offers can be attractive, it’s crucial not to make impulsive decisions. With the right knowledge and careful due diligence, you can take advantage of the deals while avoiding potential pitfalls. Here’s a comprehensive guide to buying property during the festive season.
Why Consider Buying During the Festive Season?
If you’re asking yourself whether to make a purchase this festive season, or if it’s worth leveraging seasonal discounts, it’s important to understand the factors that make this period potentially profitable for real estate investments:
1. Greater Inventory Choices
During this time, developers aim to sell off unsold inventory, leading to more options across budgets. This is particularly advantageous for buyers in the affordable housing segment, as more than half of the unsold stock in India’s nine major cities is priced under ₹45 lakh.
2. Festive Discounts and Offers
To clear inventory, developers often provide attractive deals, such as no-EMI-until-possession plans, reduced registration or stamp duty charges, complimentary modular kitchens or parking, GST exemptions, or even gold coins.
3. Attractive Home Loan Offers
Banks often roll out festive-season home loan schemes, offering benefits like waived processing fees, pre-approved digital loans, or fixed interest rates. With such offers, buyers can potentially save significantly on loan costs over time.
4. Salary Bonuses
Festive bonuses and increased disposable income allow salaried buyers to aim for a more premium purchase than usual.
5. Sellers Motivated to Negotiate
Sellers often want to close deals quickly during this period, which can give buyers an upper hand in negotiations.
Understanding Common Festive Deals
While the offers may seem attractive, it’s important to evaluate each one carefully to ensure it provides long-term value.
Discounts and Tax Benefits
Developers may offer discounts on the per square foot price to encourage quick decisions, particularly for under-construction projects facing delays. Some schemes also involve depositing money with the developer for tax benefits instead of placing it in a bank. This can be risky, as developers may use these funds elsewhere.
Freebies
Free gifts such as gadgets, cars, holidays, or memberships may accompany property purchases. These are generally of minor value compared to the property price and should be viewed as bonuses, not a reason to buy.
Subvention or Part Payment Plans
Subvention schemes allow buyers to pay a small upfront amount, with the balance due after possession. Part payment plans involve paying in multiple installments, often aligned with construction milestones. These schemes can be beneficial, but buyers should scrutinize the terms carefully to avoid hidden costs or risks.
Key Takeaways
Don’t let discounts, freebies, or seasonal offers drive your decision. Conduct thorough due diligence on both the project and the developer. Evaluate financial schemes like subvention plans, part payments, or EMI-until-possession offers carefully, and whenever possible, negotiate for cash discounts instead of non-monetary perks.
Ultimately, the festive season can offer excellent opportunities for homebuyers, but only if purchases are made with informed caution rather than impulsive excitement.
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