If you are looking for a decent accommodation for self-use and are confused over claims of developers that their projects are sold out and are 100% booked,then look out for new launches and cash in on primary transactions.This will enable you to save on costs and avail discounts on various counts.
Project just launched.Time of launch 10am,at a five star hotel.Project by a big branded group.You decide to reach the venue on time and have promised yourself that you will book it.But at the venue,look around and what do you find brokers and financiers flocking the place with cheque books,yelling"kitne ka cheque kaat dene"(how much should I pay through cheque) no one is interested or willing to answer your queries and they nearly say,"book if you want else don't,but please do not waste our time".
There is even a practice of some largeand mid-sized developers accepting cheques for booking amount,without disclosing the PSF (per square feet) rate and creating urgency amongst customers.In a recent case of a launch of a project by a big fish in the realty pond,the rate at the time of launch was Rs 6,000/sq ft and if market buzz is to be believed,the rate after four days was expected to touch Rs 6750/sq ft and would cross Rs 7,000 PSF in less than a month.So,the investor would have raked in his moolah in less than a month,leaving end users to go through a fair share of costs like appreciated values,brokerage fees,etc.
Generally,bookings are made at the prelaunch stage by investors.Typically,brokers feed their investor groups with information on what is being launched and where they should invest,etc.These investors are only interested in trading in real estate,where property value escalation allows them to make a fast buck.This goes down well with the builders who get ready takers for their projects.Only the genuine buyer,the person who will actually stay in that property,gets sidelined and he has to fend for himself by going through middlemen (investors) who have made money in primary market transactions and then pay a premium for either arriving late or not being in the loop when one can get pre-launch prices.
So,the cue for genuine buyers is to keep their ears close to the ground and be aware of projects which would be launched in the areas of their choice and conforming to other parameters desired by them.Keep in touch with brokers,so that you are well posted on the exact time and date of project launches.Also,be the investor yourself to get the best deal in the market.If you book the property at the soft launch stage,you can leverage on many discounts which are given out during this period.For instance,you are charged no brokerage on this as this is a primary market transaction.Here the broker gets paid by the developer.Besides,a percentage of brokerage discount is passed onto the buyer based on negotiation.For example,if the broker gets a discount of 3%,he passes on 1.5%-2.5% on the basic selling price (BSP) or the basic sale price based on negotiation.
Recently,a top realty firm was about to launch a project.With not many details out yet,brokers were getting hordes of investors in the first few bookings at the pre-launch or soft launch stage.With the market norm of the first few bookings getting a better rate/discount of about 100-200 Rs/sq ft,brokers booked properties with required documents and testimonials like photograph,pan card,address proof,etc.In cases where investors do not like the specifications at the time of launch,they have the option of not going ahead.The application is then not logged in and cheque will not be encashed.But if the project is strong on location or builder name,investors book more than one project under the name of their family and friends and make a fast buck.
The end user should look for a reliable name,location and book a unit in a project while it is being launched.This way one manages to save money while there is clarity in the property documentation process.
According to Abhishek Vaidya,a home buyer looking for an apartment in Gurgaon: "I went to book Godrej Frontier in Manesar.And after witnessing brokers booking properties on a large scale,I started wondering if I have very little money,or that others have way too much.And where is it coming from!"He adds that real estate is the new sinkhole for a large portion of unaccounted money.Money through bribes,overpriced tenders,and a host of other illegal activity are being put into the realty market.And this is one reason why there will be no recession here it is not borrowed money from banks! So,unlike in the US and in Europe,where there is always an overarching fear of recession,India can rest easy!
