Tips To Get A Good Bargain On Your Property Purchase In 2020
If you have made up your mind about finding yourself a new home this year, it would be interesting for you to note that the scope for bargaining is comparatively bigger than ever. Property values have remained muted in the past five years, because of a slowdown in demand and buyers today are in a better position to negotiate. The Coronavirus pandemic has limited the scope for sellers to arm-twist buyers into accepting terms and conditions tilted in their favour. Further, home loan interest rates are at a record low, after the RBI cut the repo rate to four per cent, recently.
Listed here are some simple tips that will help you get a good deal when you go shopping for a home.
Consumer is the king, behave like one
Gone are the days when property owners had an upper hand, when a deal was discussed. Considering that a large number of housing units are lying unsold across India’s major markets – data show there are nearly 7.40 lakh unsold housing units across India’s nine major markets – developers/sellers have lost that dominant position they used to enjoy, when the demand for residences was huge and they sold it on their own terms. From the start, the discourse must proceed on that note.
Don’t settle for less; the market is full of options
Since the market is full of options, ready-to-move-in, as well as new, keep looking for your dream home until you see it in reality — every aspect of it. There isn’t any need to make a hasty decision, because property prices would continue to show muted growth at least for some more time before they start showing any upward streak. If you are buying property for investment purposes, it would be a good idea to go for a city where prices have seen some downward movement in the past, making luxury properties more affordable for you.
Deposit rates are low; use the savings for home purchase
Some of you might not be in the need to seek housing finance in order to make the purchase. However, you may consider applying for housing loans to get tax breaks. Since deposit rates are currently quite low (between 3.50 and 7 per cent), it would make better monetary sense to avoid takeing a home loan. While home loan rates are also in a downward trajectory (minimum eight per cent), they are still much higher than deposit rates.
Why wait when you can move in?
Lakhs of homebuyers have been left waiting for their homes, as liquidity a crunch has forced many builders to delay their projects. To avoid this problem, invest in ready-to-move-in options. Chances of you getting discounts are also higher, since builders are under great pressure to improve sales. Additionally, ready-to-move-in projects don’t attract any GST.