Should you buy property during festive offers?

To lure potential buyers and to increase sales, developers come up with some special offers, schemes and bonanzas during the festive season. However, there is always a debate on whether these offers are just promotional gimmicks or are they really a ‘good deal’ for buyers. Though such lucrative offers are hard to ignore, should you buy property when festive season offers are on?

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Generally, these festive offers by developers are announced in the market by October and continue through the New Year till March. The offers range from subvention schemes, discounts, trip to foreign countries, gold coins, free electronic items, free stamp duty, free kitchen cabinet and if you are very lucky - a car or a flat.

Rachit Sethi of Wave Infratech Pvt Ltd says, “Many offers are win-win situations for both buyers and developers!! The developer sources a commodity in bulk and gets the benefit of economies of scale and on the other hand, customers win by getting furnished kitchen or AC or LED TV, etc at possession.”

“The objective is clear - increase in sales owing to market fluctuations and auspicious timing to invest or may be nearing possession, whatever be the reason, both the parties gain,” adds Sethi.

Rajiv Raj, co-founder and director, CreditVidya shares a similar view. He says, “Builders offer discounts in anticipation of the spike in sales during the festive season, which is considered auspicious by buyers. These offers can be beneficial for customers if they are ready for the transaction”.

Offers from Banks

“Few PSU banks such as Punjab National Bank, Bank of Baroda waive off processing fees during the festival season. Sometimes the interest rates are lowered by 25-50 basis points to increase the off-take on home loans,” says Raj. Some banks also offer fixed interest rates irrespective of the tenure of the loan.

Should you buy? Sethi says, “Buyers must understand that these offers are ‘an extra or additional item’ with their property. One should not buy basis free discounts but should buy basis need. Buyers must first analyse their financial condition and needs and then decide on a property. Anything extra is always profitable.”

Many such offers are available only on selected properties. In case of free electronics do consider the extra shipping and handling charges. As a buyer, one should not just be attracted due to discounts and offers. They should calculate their budget, research the market, value what ‘extra’ they are getting and then if you find some scheme too good to ignore, you can finalise the deal.

Source: http://content.magicbricks.com/industry-news/should-you-buy-property-during-festive-offers/79863.html