Developer’s new strategy: Discount on homes

Bangalore has increased its pace in the race of growth and development by giving its residential segment a new dimension. With the expansion of its residential segment, offerings for end users and investors have climbed few notches up. Offering discount on housing units are gradually taking the limelight, since they cut in on perfect location and affordable pricing. Offering such homes in areas where industrial and commercial development has risen significantly, serves as an icing on the cake.

Discount homes-A perspective

Homes on discount are in fashion and is the recent trend adopted by a number of developers, singled out by home-buyers. According to this scheme, which has taken away the property buyers by a storm, a buyer is entitled to a certain amount of commission for every sale of the rising inventory unit. A number of key developers in the city have put to use the method to offload the rising stock.

Such a scheme pitches in well for developers having a mounting debt. In this regard, developers offer freebies (such as club memberships, free parking lots etc.)to lure in more buyers and ward off the growing inventory. Adopting such a procedure for sales offers the parties to hop on profit bandwagon. Since personal stake is included in every part of such transactions, going in for such sales method will surely prove beneficial for the parties.

Investment dynamics

Infrastructure development, excellent connectivity and good quality of construction are the crucial points that should be taken into consideration before opting homes on discount. Appreciation potential is one of the important factors which every home buyer in the city looks for. A property, bought on discount, can only appreciate in future if it is equipped with adequate infrastructure, excellent road connectivity and a wide range of credible labels.

According to property consultants, appreciation potential that can be expected in the long term from a home bought on discount, run between 50-75% of the residential real estate market. Furthermore, if such a home is bought in a location with good potential for growth, it could go more than 75%.

In addition to the number of benefits, the returns from rent will be comparatively higher than the normal residential rental market. Moreover, the long-term growth percentage is much better compared to the low base point.