Real Estate Investment in Monsoon is Beneficial
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The monsoon is normally a dull period for the real estate industry and house hunting during the rains could bag you a good deal. The cement, infrastructure and realty are sectors that typically slow down during the monsoons. In Monsoon, Sale or booking of flat falls and real estate builders in India could be facing a liquidity crunch too, so he readily gives out discounts. The real estate builders or developers have no option but to give discounts to sell. Banks and financial institutes come up with monsoon special offers on home loans.
Advantage of buying a house during monsoon
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During the rains, developers usually find it difficult to push sales and many people postpone buying a house during these months. The builder, on his part, wants to get rid of it so he can start a new project in the upcoming festival season. Developers finally start offering discounts on properties. The quantum of discount varies for different cities, depending on how badly it is affected by the monsoon. Most buyers prefer to keep away from investments during monsoon because of religious belief in ‘Shravan.‘ There is lesser number of site visits by prospective buyers and demand for property buying also goes down. The developers have no option but to give discounts.
How to Get Best Deal
- Bargain for lower rates: Property buyers prefer to wait till the festival season to buy real estate. To get a best deal for your real estate investment in Monsoon, bargain for lower rates with your builder or developer.
- Monsoon discount: The builder wants to get rid of existing project so he can start a new project in the upcoming festival season. They are willing to offer lower rates to serious buyers. The quantum of discount in Mumbai and Kolkata is likely to be higher than other cities.
- Dip in Sale of property: Due to hike in Home Loan, banks and financial institutes are strict in lending developers and the onset of monsoon, Real estate business in the city has taken a dip. Builders and developers are willing to offer special rate for serious buyers.
- Monsoon Home Loan: Though not many banks are likely to offer formal discount offers this year because of the recent rate hikes by the RBI, Banks and Financial institutes are willing to negotiate the rates and charges depending on your credit profile.
- Good for Building Inspection: Most property buyers opt for buying a property in festival season or in summer. You can check for building structure and signs of dampness or leakage before signing on the dotted line.
- Locality: Buying property in monsoon can help you to find right property and good location. It will give you an idea about problems regarding water logging and traffic or time consuming to commute in that locality during monsoon. Such a search becomes especially important if you have moved to a new city and are not familiar with the locality and the geographical problems.
The monsoon is normally a dull period for the real estate industry. More realty companies will offer discounts as sales are not taking place and banks are willing to negotiate the rates and charges with property buyers. The developers will not publish the discounts that they are offering but you can bargain for lower rates and get best deal. During monsoon, you can check for signs of dampness or leakage before signing on the dotted line. If you have moved to a new city and are not familiar with the locality, you get a sense of how much time it would take to commute and understand problems regarding water logging.
