Sunday, March 1, 2009

Grasp the ground reality - with developers slashing prices, buying property may seem a good idea now, but do you really get more for less?

Here are some tips to play safe:

1) Old wine in new bottle:

Builders preferred to lower the total price of a housing unit in the market to encourage buying. In a number of cases this was done by way of reduction in the size of units or lowering the frills or amenities originally offered by the project.

While such a move is indeed welcome, as it makes housing more affordable for a larger universe of buyers, it essentially points more at the mere change in the strategy employed by developers than any significant slash in property prices.

In these cases, home buyers probably may still have some headroom for negotiating with the developers for further price cuts. Such bargains, however, should be backed by research of price trends in the local market.

2) What you see may not be what you get:

The second issue in the recent property offers is the seemingly attractive per sq.ft rate advertised boldly in newsprint and property fairs. A home for Rs 2,000 per sq.ft in Bangalore city may appear hard to resist but then is that rate an all-inclusive one? Well, it seldom is for a host of additional charges may increase the property price as much as 10-15 per cent

3) The greater ‘common space':

The third aspect a buyer should be aware is that while one pays for the full super built area of the apartment, the living space or carpet is a good 22-30 per cent lower than the area typically quoted. A 1,000 sq.ft house may eventually have only 770 sq.ft of living space.

So, in other words, while you pay for the super built-up area, you get to own only the super built area minus the common area and the wall thickness; this is called the carpeted area or the area you get to use inside your home.
To read more, please, visit - Vidya Bala-The Hindu Business Line

Have you come across any project where property price cut is nothing but a farce?

Please, share your experience where you found out that the property price reduction is not genuine but only a marketing gimmick to attract you. Where you realized that even at the so called reduced property rate you are not getting value for your money. Please, share your experience in the comments. (Comments Policy),

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