The property prices across different cities of India have touched record highs. This is in spite of the fact that developers have not increased the prices by much overthe last 3 to 4 quarters. As a result most end users are finding it difficult to get their names on property ladder. Many prospective home buyers who adopted wait and watch policies are currently in catch-22 situation. While, at one end the prices are at record highs even if the unsold inventories are rising, the interest rates have fallen to sub 10.0% level offering the end users great opportunity to purchase their dream home. Nonetheless, there are many who are still not able to make up their mind and are fence sitting. These users now have a great opportunity to buy properties at up to 90% off market value. Here’s how –
One of the best ways to get heavy discounts on real estate deals is via online medium. The online property websites like Housing.com features more than 1 million verified and confirmed properties across 100s of Indian cities. This includes independent house for sale in Dehradun, flats in Pune, apartments in Noida, plots and lands in Jaipur, etc. Prospective buyers who dig deep can certainly find many properties that are at much lower valuations compared to prevailing market rates.
Purchase properties from investors
There are many investors who generally undertake bulk bookings at the project launch itself. This is a win-win situation for both investor as well as developer. The investors get heavy discount and the developer gets the required fund to execute the project. These investors generally exit the market in 3 to 5 years or when the project is completed, whichever is earlier. This way they end up making a profit of nearly 100% on each of their investment. The working here can be explained by a simple example – let’s say an investor purchases a 2 BHK flat in Kamothe, Navi Mumbai for 10 lakh rupees in 2006 and sells it for 22 lakh rupees in 2009. However, in 2009 the market rate of 2 BHK flat in Kamothe is nearly 40 lakh rupees. Thus, the new buyer will get a discount of nearly 95% on market rate and the investor will garner profit of more than 100% in just 3 years.
Buy bank auction assets
The other way to get heavy discounts on properties is by purchasing them through bank auctions. Banks or housing finance entities freeze the assets if the customers are unable to repay loans. Banks then go ahead and resell these properties through auction. Here it is important to note that even though these assets are at a discounted rate they do not carry heavy discounts like for example 50% on market rate. The discounts are raised only if the property that is been put on block remains unsold for considerable amount of time. Having said this, it is an excellent opportunity for home buyers who are in look out for properties with considerable discount from time to time.