Buying a house: How to bag a good property deal in 2013
While this is a good sign for buyers, those willing to look around and bargain hard will benefit the most.
Dec 31, 2012
Source : The Economic Times

 

The passing year witnessed insipid growth in the residential property market, with buyers turning cautious and hoping for a price correction and lower home loan interest rates. The developers managed to hold on to the ticket prices of their projects, but were forced to offer discounts to generate sales.

High inflation continued to play spoilsport as it prevented any substantial cut in home loan rates and left little investible surplus with buyers.

On the policy front, the RBI asked banks to exclude stamp duty, registration and other documentation charges from the total value of the home for calculating the eligible loan amount. It also restricted banks from lending more than 80% for houses worth over Rs 20 lakh. This means you will have to save more to buy your dream home.

The developers came up with new gimmicks to sell their projects. Instead of bringing down the price, they altered the meaning of affordability. If projects under Rs 30 lakh were touted as affordable two years ago, even the ones with a Rs 60 lakh tag were termed affordable in 2012. It's another matter that incomes did not keep pace to justify this 'affordability'.

The NRI buyers benefited during the year due to the depreciation of rupee against the dollar. "In places like Bangalore and Pune, the NRI investment helped the overall volumes," says Pankaj Kapoor, managing director of Mumbai-based Liases Foras.

Strategy for 2013

Property prices are unlikely to see a significant correction despite the low sales volumes, but discounts and freebies will continue this year too.

"Since the only way to catalyse healthier sales at this point is by offering buyers tangible financial relief, we are likely to see drastic trimming of frills in projects to make them more marketable from a pricing point of view, and innovative payment schemes," says Anuj Puri, chairman and country head, Jones Lang LaSalle India.

While this is a good sign for buyers, those willing to look around and bargain hard will benefit the most.

Also, keep an eye on the resale market, where many investors may be considering offloading their investments at a lower rate than being quoted by builders. The benefit could also be in terms of getting a ready-to-move-in house.

If you plan to take a home loan, this year will be better than 2012. Not only will interest rates be lower but the benefit will be passed on quickly to the existing borrowers.

However, project delays may continue as developers are still running short on funds and increasing construction costs have affected their margins. Most developers are banking on project sales to generate funds. So, if you are going for a property under construction, factor in some delay in getting possession.

If buying for investment, keep in mind that the quantum of appreciation came down significantly in 2012. It might reduce further in 2013.

Latest Realty News

Many new additions to cityscape
Dec 31, 2012
Sambalpur: The topography of Sambalpur town is seeing a change in the last few years. And 2012 was no different. The town is growing by leaps and bounds and the year saw an addition of more hotels, eateries, shopping outlets and air-conditioned salons to the cityscape.
Sand city touching new heights
Dec 31, 2012
Balasore: With urban lifestyle fast attracting the youths, malls and marts have become the order of the day. To catch the attention of young minds, the sand city of Balasore, of late, is witnessing some activity in the real estate segment in small parcels of land.
Capital City piggybacks on real estate boom
Dec 31, 2012
Bhubaneswar:Real estate sector in the Capital City is a buyer’s market today. This year, the sector is providing over 4,000 housing units whereas the demand is roughly for 2,000 to 3,000 units.
Tirupati Panigrahi held in Bhubaneswar for land ‘fraud’
Dec 26, 2012
BHUBANESWAR: The Crime Branch of Odisha police on Tuesday arrested noted businessman and vice-president of Odisha Cricket Association Tirupati Panigrahi and two of his relatives here for allegedly reneging on the promise of providing residential plots to two men after taking money from them in 2009.
BDA decides to implement RTPS Act
Dec 26, 2012
BHUBANESWAR: Bhubaneswar Development Authority has decided to implement Right to Public Service (RTPS) Act for housing plan approval process from January 1 at a time the government is planning to apply it in 31 other services.
Karnataka HC finds fault with BDA for passing compensation award 23 years after acquisition
Dec 22, 2012
Bangalore: Strange are the ways of the Bangalore Development Authority(BDA), an authority constituted for developing the city of Bangalore. In an interesting case, the Karnataka high court has quashed the acquisition of the land in Bangalore city for the BDA on the ground that the compensation award was passed only in 2010, nearly 23 years after the issue of final notification.
Bangalore Development Authority official took bribe, held
Dec 22, 2012
BANGALORE: Lokayukta police on Friday arrested a first division assistant with the Bangalore Development Authority's (BDA) land acquisition division for demanding and accepting a bribe of Rs 20,000.
Credai Nashik Realty Exhibition begins from today
Dec 20, 2012
NASHIK: A four-day real estate expo called 'Shelter: 2012', organised by the Confederation of Real Estate Developers' Association of India (CREDAI), Nashik, will begin from Thursday.
Own a house? It will take care of your old age
Dec 16, 2012
RAIPUR: Facing neglect from children and need financial independence in old age? Reverse Mortgage Scheme is the solution. But it is evoking very poor response in Chhattisgarh, thanks to lack of awareness.
Hot spots for residential realty
Dec 16, 2012
Several cities are seeing high growth turning them into the next investment destination for residential realty. Even as various studies point to their emergence, an investor would do well to carry out proper due diligence

Latest Realty News Of State

Realty Talk's