Look for tangible gains

Narasimha Jayakumar

The festive season —  October to December — sees maximum property transactions. And why not? After all, starting from free EMIs, gold coins and vacations, to free club memberships and parking areas, to offerings of television sets, home appliances and gift vouchers worth Rs 1 lakh or more, developers leave no stone unturned to lure buyers and ensure a conversion.

However, should homebuyers get tempted by such offers? Are realty deals really lucrative? Let's decode festive offers and explore the ones that hold the potential of converting into tangible gains for buyers.

Free lifestyle add-ons

Such an offer will ensure that the house is ready to live, which means, it is equipped with immovable furnishings such as wardrobes, modular kitchen, cabinets and storage facilities, and at times, with movable items, including LED television, kitchen chimney and water purifier. Nowadays, these lifestyle amenities are imperative and getting them free of cost, can help you save a substantial amount. But just be very sure whether you actually need those, such offers can be useless for those already having these items in their homes. 

Additional amenities 

If the developer is offering free lifetime maintenance or club membership, the deal is definitely worth considering. Some developers offer more than one parking lot, which can prove a boon for families owning two or more vehicles.

Customised payment plans

Usually, a buyer has to pay a minimum of 20 per cent of the property cost as down-payment and borrow the remaining 80 per cent from a bank. For a lot of buyers, organising the initial upfront payment tends to become an impediment in the way of purchasing a dream home.

Under customised payment plans, such as 5:80:15 or 10:80:10, the total price of property in bifurcated into three components. The down-payment amount may be as low as five or 10 per cent of the home cost, followed by the home loan component and lastly, the final settlement at the time of possession. Since such payment plans are linked with a designated financial partner, monetary transactions happen in a smooth and hassle-free manner.

Pre-EMI schemes

Such a scheme can prove especially useful for those staying on rent. Pre-EMI offers ensure that a buyer has to pay the interest on the loan amount as long as the property remains under construction. Once the construction is complete, the buyer can start the repayment of the actual loan amount. However, you need to keep in mind that in a pre-EMI scheme, you end up paying more money to the lender and for a longer duration - the construction period (1-3 years) and loan tenure (15-20 years).

Cash-back offers

Cash returns are definitely a prize! Under such a scheme one gets back a pre-decided per cent of the down-payment. The percentage may range from 5-10 per cent or even higher and is mostly credited at a later stage. 

Tread with caution

While availing such festive offers can take you a step closer to your dream home, you must exercise caution prior to loosening your purse strings. Ensure that none of these offers are marketing gimmicks and that the basic cost of the project has not been spruced up to accommodate the discount. Such a case of artificial inflation can easily be gauged by assessing the actual market value of the locality vis-à-vis the festive offer. You must also ensure that your research encapsulates the project price and market value prevailing for the past few months so that you can get a broader picture. 

Furthermore, if festive schemes are available only on selected units, there’s a possibility that those apartments have no takers. Keeping such precautionary measures in mind can definitely help you clinch a good deal this festive season. After all, property prices are currently competitive and a homebuyer will have the advantage of being served the industry's best on a platter at this time of the year.

— The writer is Chief Business Officer, 99acres.com.