I always take participants through these four concepts during my orientation programs conducted for developers, employees and channel partners.
Customer Is God.
Customer Is King.
Customer Is Boss.
Customer Is Always Right.
But in my 23 years stint in Real Estate industry, I have seen few developers trying to make the Home Buyer feel like any one of the above. Courtesy COVID, everything is set to change and at last, the Home Buyer will become "Destiny's Favourite Child". Hello Home Buyer, get ready to be pampered by the industry. "Loha Gharam Hai. Maaro Hatoda."
As you know, the industry was already limping before the lockdown was enforced. On one hand sales figures were crawling and on the other hand the cost of construction was continuously spiralling out of control. Then comes lockdown that brought the industry to a grinding halt. Some developers with loyal customer base, were able to pick up few EOI (expression of interest) based bookings through online. But in general, in the last 2 months there has been no sale. This is in addition to the dry phase of last 2 years. Here is your time under the Sun. Make merry now. Developers are preparing to line up offers, schemes, freebies and a whole lot of benefits along with Home Loan Lenders.
Following guidelines will certainly help you to "Buy Safe. Be Safe."
Choose projects which have APF (approved project financial) from at least two well known lenders. This will take care of land title issues.
Select projects that offer innovative schemes which give you maximum benefits, convenience, payment facilities and safety till possession. Stay away from fancy and 'get rich' schemes.
Practically, prices haven't increased in the last 4 years. Keeping inflation in view, this is as good as correction in prices to the extent of at least 20%. In addition, average cost of construction has gone up by at least 20% during the same period. Effectively, the prices are already discounted by 30% - 40%. This leaves little or no scope for developer to further reduce prices.
Therefore, do not fall for heavy discount and distress sales advertisements, especially in under construction projects. The project may never complete with insufficient cash flow. Developer needs to have sufficient cash flow from you to complete the project.
Many Home Buyers feel that a big brand developer is safe bet. The risk element in business is same for all, irrespective of size of business. Look for what you want and see who can meet your demand and expectations. With RERA in place, you are fairly safeguarded.
Please ask if any referral program or customer loyalty program available with the developer. This will help you generate additional income for yourself during these difficult times. Remember, you are developer's best advertisement. And this time around, developer will make you feel like you are at least one of the above mentioned four!
Wear your best bargaining hat when you sit with the Home Loan Lender. He makes maximum profits out of you over the next 15-20 years. Negotiate aggressively for lower ROI (rate of interest) which will reduce your interest cost, maximum Tenure which will reduce EMI, higher FOIR (fixed obligation to income ratio) which will make you eligible for bigger loan, higher LTV (loan to value) which will ensure lowest self contribution and insist on zero processing fee.
By bargaining with a developer who is already out of pocket, you might end up saving a small amount. But by squeezing the Home Loan Lender, you will end up saving huge money over the next 15-20 years. Many Home Buyers miss this point as they focus only on developer. Please remember, in these tough times, developer may or may not make any profit but Home Loan Lender surely makes huge profit despite of whatever discount they pass on to you.
In the last 23 years, I haven't come across as many good reasons to buy a home.
COVID Lockdown is the newest and best reason. "Better to be quarantined in your own home than locked down in a rented one." Delay no more.
Stamp duty and GST at all time low even for under construction home. Government has done what it could. Time for you to do the rest.
PMAY benefit, Income Tax rebate, savings on Capital gains tax etc., are at all time high and provide historical levels of FAB (features, advantages, benefits) to YOU. If not now, when?
Stock markets resemble choppy seas. The NAVs of so called safe SIPs and Mutual Funds look like the badly beaten up villain of movies. As usual, we never pay attention to the fine print. Mutual funds are subject to market risks...........!
The ever dependable Gold is competing with Sir Edmund Hilary and Tenzing Norgay. By the time you read this blog, Gold would have equalled their record of reaching the peak of Mount Everest.
Sorry Home Buyer, unfortunately, the most crucial aspect of owning property, is least appreciated by you.
Forget not. "Property is not only about price. It is about VALUE too. VALUE creates EQUITY and PRIDE."
Dear Home Buyer, time is right, circumstances are in your favour and therefore "Strike While The Iron Is Hot."
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