While hunting for a house, property exhibitions could be a good place to start.
From tomorrow, the Maharashtra Chamber of Housing Industry (MCHI), a representative body of builders and developers in the state, will hold a four-day property exhibition. Such exhibitions are opportunities for potential homebuyers to go through a wide range of apartments under offer from builders. Similarly, banks try to lure customers by waiving administrative or processing fee and, sometimes, even offer a 25-50 basis points lower interest rate.
While actual purchases may not be on the agenda for many visitors, such exhibitions serve as a ready reckoner of the projects in various parts of the city, feels Sanjeev Mehra, a 35-year-old banker. He is on a lookout for a two-bedroom, hall and kitchen flat. “It is difficult to travel to different locations to see properties. Instead, I plan to visit the exhibition and narrow down my options,” reasons Mehra.
SPOT BOOKING
It is rare. Of the 65,000-plus visitors at the October edition of the MCHI exhibition, only 200 on-the spot bookings were made, according to Zubin Mehta, CEO, MCHI.
Developers, on their part, dole out several offers. “Some developers announce discounts for bookings made at the exhibition. These can be cash or in terms of freebies,” says Mehta.
However, real estate consultants feel such offers should hardly influence buyers. “They should use the exhibition to compare the options available within their area of preference. How many properties are ready vis-a-vis under construction. And, what is the difference between the carpet area and saleable area,” advises Pranay Vakil, chairman, Knight Frank.
Besides, “This is a buyers’ market. For the past six months, property sales have dipped as buyers are finding the prices affordable, especially since the interest rates are also up,” says Sunil Rohokale, executive director, ASK Investment Holding. And, the exhibition can serve as a starting point for price negotiations.
FINANCE OPTIONS
The lenders present at the exhibition, typically, ask buyers key in information such as their annual income, their spouse’s (in case of joint home loans), price of the property for which the loan is being availed, etc.
Based on these, you get an in-principle approval. That is, some banks give you a pre-approved loan. But remember, a pre-approval document means little because the bank does not disburse any loan. Such a document should only serve as a benchmark and give you an idea of the loan amount you could be eligible for.
| CHECKLIST FOR POTENTIAL BUYERS |
| * Area calculation: Are you being charged depending on the carpet area, built-up area or super built up area? What is the actual space in the flat? |
| * Total cost of the apartment: this should include per square foot cost, any additional charges for parking or other amenities, stamp duty, registration fees and any other costs. |
| * Completion timeline and payment schedule: how much must you pay upfront? Will the remaining payment be construction-linked? |
| * Amenities being provided. |
| * Get to know if he has any completed projects in the same area as the one you are interested in. This can help check the history of builder and quality of construction. |
According to MCHI, the exhibition will only showcase projects of members which have received the intent of development and commencement certificate from the municipal corporation. However, MCHI is not a government regulator. Also, the MCHI assurance does not include quality assurance, guarantee possession or completion of the project.
