Freebies: Should buyers bite the bet?
Indians always await an auspicious time to begin with their financial transactions, and purchase of real estate assets is no exception. With the advent of festival seasons like Navaratra in the period March-April, consumers will be thrown open to a plethora of choices, as builders and developers in India come up with new freebies and schemes to rope in buyers in bulk.
Traditionally speaking, the looming Navaratra festival is tagged as the perfect time for Hindus to invest in real estate assets. Hence, the number of transactions during this period of the year shoots up significantly. By nature, consumers expect builders to come up with discounts and subvention schemes during every such period.
Discounts-part of freebies
Discounts offered by developers range from gold coins and gift vouchers to free fitments (such as ACs). With only a slight push, a large number of buyers feel free to invest in real estate funds during the festivals. However, industry experts comment that such marketing gimmicks indirectly put the onus of cost on the consumers at a latter stage, eventually. One should give a nod to special festival discounts offered by developers only when it is profitable.
Hence, by harboring some degree of advertisements to encourage buyers to invest in real estate funds, developers hit it high and reap benefits beyond numbers. A background check on the buyers confirm that Indian buyers are always on a lookout for schemes that offer freebies. However, it is highly recommended to cash in with such schemes only after a thorough cost-benefit analysis.
The trick played by developers
Offering freebies (such as inducement are schemes framed by developers to rope in the potential buyers) is common in India. Inducements and freebies such as customization of apartments, guaranteed tax benefits, waiver on registration charges etc. Some developers give discounts during normal times and withdraw it during festive occasions. A careful buying behaviour suggests that a comparison with the discount offered during normal times with the period of festive seasons should be considered for a risk-free approach.
In a number of cases, the freebies offered have strings attached. More often than not, projects that boasts of freebies have their rates increased a bit. Furthermore, such freebies are typically time constrained and are given to a handful of housing projects. Hence, experts conclude that evaluating the options in hand and assessing the viability of a project is de rigueur before taking the big leap.
