Rains in India push back people into their homes. The monsoons create the perfect ambiance to partake of pakodas and sip on hot coffee while watching the drizzle freshen the trees outside. Going outside involves braving the puddles, traffic jams and getting splashed by passing vehicles. How can this be a good time to buy a new home?
But the fact is that the monsoons are the perfect season for your house hunt. The demand tends to be lower during this season as most potential homeowners are unwilling to step out and face the weather. This means that you are at an advantage for striking a good deal.
An opportunity to bargain
Time is money, and sellers are always on a hurry to move their unclaimed real estate. Culturally, Indians find it inauspicious to invest in anything for the two weeks of the monsoons that coincides with pitru paksh. Consequently, they wait for the festival season (generally in the month of October) to invest in properties. This is why sellers offer considerable ‘monsoon discounts’ to boost their sales, and this can be a good opportunity for buyers.
It is not just real estate developers who offer to sell at lower rates, but also investors and home owners hoping to upgrade to larger homes. The rate of discount varies depending upon the location and how badly it has been affected by the rains. Discounts on regular prices in cities like Kolkata (which is among the worst-affected cities) are likely to be more than in Chennai or Delhi, and even in top cities like Mumbai, home buyers can expect a discount between 10 and 20%.
The current real estate sale trend too opens up a larger window of opportunity for buyers. The demand for properties has been low in the past three quarters, and especially during the lull period of the monsoons, sellers are eager to accommodate serious customers. In fact, property sales in 2015 are likely to continue their journey along the lower end of the graph the end of the holiday season.
Apart from the discounted property rates, potential buyers are likely to encounter ‘monsoon special’ home loans by banks. Though some banks wouldn’t offer a formal discount as RBI has recently integrated some hikes, they would be likely to negotiate the charges and interest rates according to your credit scores.
Perfect time to scout for quality!
If you have been eyeing a property from the start of the year and waiting for the monsoon discounts, this is the time to keep a watchful eye for construction quality. Sellers and developers find it easier to keep properties in good, saleable conditions during the summers. However, with the elements pouring down in the monsoon months, it could reveal constructional defects.
Buyers can encounter leakages and dampness in otherwise beautiful houses. This makes the monsoon the best season to judge their potential investment value. Further, you should also look for how good or bad mobile networks and traffic on access roads are in the selected project during the rainy season, especially if you are new to a locality.
Consequently, the monsoons give home buyers several astute reasons for investment. In the same budget, you can even look for bigger and better homes!
About The Author
Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury homes towers and premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.