A lot is written by experts consistently from real estate industry. The developers, promoters, property management companies like JLL, CBRE, etc. The inputs were valuable without doubt.
Issue is what does the common connect with?
What does the common man understands?
Can we talk GDP, IRR, etc with common man?
No way. Common man understands EMI and savings. He / she knows what savings they have got. What possible increment they will get in next financial year, ex gratia and in case the department head accepts the performance, a promotion is tentative.
Unless we discuss grass root level realities the buyer is the looser. So here we go.
TEAM NV spoke to some real estate agent. They had few useful tips to share.
Price correction is happening and can be seen in large projects. Ones where the construction started say at least two to three years ago or may be more. The reason is genuine buyers and investors are selling and making profits in these projects. Projects that are under construction are tricky ones to invest. The rates may be look slightly low but a buyer needs to see what time period they have to wait for the handover. Lesser the wait more the savings if a person is staying on rent at present.
If you are planning to buy a flat in a township, you need to know or find out when the township was announced? When did the construction start? What was the rent then? What is the occupancy at present? What is the selling and rental rate now?
Though it may sound foolish or time consuming go to at least 4 to 5 housing society and speak to security guards on duty and few residents to clarify any doubts you have like water supply, safety, kind of people in that housing society, availability of public conveyance at odd hours, etc. But the exercise is worth it.
A lot of townships have flats owned by investors. It is easy to buy a flat at good rates in second sales. Say for example a buyer in a township that is on outskirts of city limits may have bought a 1 BHK for 13 lacs in the year 2008 now he would easily get around 22 to 24 lacs for the same flat. A new flat up for possession in same township is available for 25 to 28 lacs.
In such projects you would be able to see rates have dropped. Whereas, if you go to buy a flat in well settled localities where occupancy is almost 90% or more the rates would be obviously high and difficult to negotiate.
Play your cards well. After all, it is your hard earned money. Isn’t it?