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Buying Property In The Festive Season? Take Note written by Sunita Mishra, published in October 16, 2019

Those who have decided to invest in a property this festive season will find that there are many perks associated with home purchases currently. As a homebuyer, it&rsquos in your best interest to take note of what lies at your disposal in the current market and make the best use of the opportunities. However, at all times, caution should remain the keyword in your searches.


Home loan rates at a record low


Interest rates are at a record low, with some banks offering housing loans at an annual eight per cent, after switching their lending benchmark from the MCLR (marginal cost of funds based lending rate) to the repo rate.  The borrower would also have the option to pick between the two.


Word of caution: Going for repo-rate linked loans makes sense only if you keep yourself abreast with monetary policy developments and are able to keep up with the changes that may come your way suddenly.


Fewer discounts to avail of


Developers are having a hard time dealing with the liquidity crisis amid the recent defaults by some well-known non-banking finance companies (NBFCs).  So, discount offers are far lesser in number this season. However, deals, including stamp duty and registration charges waivers, may fuel the festive spirits. Electronic appliances, free amenities and gold coins are also being offered by some developers to improve sales numbers.


Word of caution: Never let go of a property you know to be good only because the builder isn&rsquot ready to negotiate. Making short-term gains on a property purchase would invariably prove a wrong choice in the long run.


Opt for ready inventory, for easy bargains


Data available with show that India&rsquos nine realty markets currently have nearly eight lakh unsold housing units. Caught amid slowing sales and drying sources of funding, builders are desperate to offload this stock. This presents a great opportunity for buyers looking for ready-to-move in homes this festive season.  


Word of caution: Check the age of the unit and make up your mind about the purchase based on that fact. Also, note that property rates have already undergone major corrections in the past five years, especially in the national capital region (NCR), and the promoter can&rsquot be expected to lower the price dramatically.