There is a practice of some large- and mid-sized developers accepting cheques for booking amount, without disclosing the rates per square feet and creating urgency amongst customers. In a recent case of a launch of a project by a big realty player, the initial rate at the time of launch was Rs 6,000 per sq ft and is believed to touch Rs 6750 per sq ft and may cross Rs 7,000 per sq ft in less than a month. So, the investor would have gathered in his moolah in less than a month, leaving end users to go through a fair share of costs like appreciated values, brokerage fees, etc.
Generally, real estate bookings are made at the pre-launch stage by investors. It is typical of brokers to feed their investor groups with information on where they should invest. These investors are only interested in trading, where property value escalation allows them to make fast money. This goes down well with the builders who get ready takers for their projects. Only the genuine buyer, is the person who gets sidelined and has to fend for himself by going through middlemen.
So, the cue for the end users is to be aware of projects to be launched in the areas of choice. Another one is to keep in touch with brokers, and be informed of the exact time and date of project launches. But, the best deal in the market is to be the investor yourself. If one books the property at soft launch stage, it is possible to leverage on many discounts which are given out during this period.
The end user should look for a reliable name, location and book a unit in a project while it is being launched. This way one manages to save money while there is clarity in the property documentation process.
Real estate is the new sinkhole for a large portion of unaccounted money,being put into the market. And this is one reason why there will be no recession here, India can rest easy!
