Innovative Schemes to Attract Buyers
Sep 28, 2016 Home Trading Steps
Real estate is one sector which has been in the new recently for the reason of stagnancy. This sector in the recent days has been facing a slowdown. We see the buyers waiting hopefully for the prices to increase whereas the developers are eager on selling their properties faster. This stagnancy has even affected the lending institutions like banks and the Housing Finance Companies which are adversely affecting their revenues as well as the balance sheet.
To boost up their sales, all the developers and these lending institutions have brainstormed and have come up with some schemes and methods to attract the property buyers.
Let us look at some of such schemes that are widely available in the market for the buyers.
SUBVENTION SCHEME
The old subvention scheme which was referred to as the 20 is to 80 schemes (20:80) still remains to be one of the most popular schemes between both the home buyers and also the developers. In this scheme, the buyers of the property need to pay only 20 percent of the total amount of the concerned property, and for the rest 80 percent one can avail for the home loan.
But, like the conventional home loan in this scheme, the EMI will be paid by the developers in the initial time i.e. of two to three years, till the developer gives possession. The buyer will begin paying the EMI after getting the possession into the property.
Hence in the construction period of time, it is the developer who is making the payment of the interest on the buyer’s home loan. But buyers need to research properly before finalising a scheme. A buyer must go through the property rate offered by the builders along with the one which prevails in the market. This needs to be done to check whether the builder is paying the entire interest or he passing a part of it to the buyer.
A buyer must check for the amount of discount a developer offers or is willing to pay when a buyer does not avail the subvention scheme.
SUBVENTION WITHOUT LOAN
Subvention by the developers without the home loan is another scheme that the developers are being offered. It is almost similar to the scheme which involves the loan. Here, the buyer pays 20 percent of the cost and the builder will ask the buyers to pay the rest 80 percent on possession.
PRO RATA OR PARALLEL FUNDING
This scheme has been recently becoming popular among the developers as well as banks. In the conventional home loan process, a buyer needs to make the initial contribution i.e. of 20 per cent before any bank disburses the loan. So, if a property is costing say one crore, then the buyer needs to have twenty lakhs out of his funds. The aim in parallel funding is to decrease the burden of the buyer during the initial stages.
Developers are constantly trying to establish new schemes and are modifying the old one in order to attract more and more buyers. But the buyers need to act fast as once the element of stagnancy is removed and sales pick a kick then developers might withdraw these schemes.
To boost up their sales, all the developers and these lending institutions have brainstormed and have come up with some schemes and methods to attract the property buyers.
Let us look at some of such schemes that are widely available in the market for the buyers.
SUBVENTION SCHEME
The old subvention scheme which was referred to as the 20 is to 80 schemes (20:80) still remains to be one of the most popular schemes between both the home buyers and also the developers. In this scheme, the buyers of the property need to pay only 20 percent of the total amount of the concerned property, and for the rest 80 percent one can avail for the home loan.
But, like the conventional home loan in this scheme, the EMI will be paid by the developers in the initial time i.e. of two to three years, till the developer gives possession. The buyer will begin paying the EMI after getting the possession into the property.
Hence in the construction period of time, it is the developer who is making the payment of the interest on the buyer’s home loan. But buyers need to research properly before finalising a scheme. A buyer must go through the property rate offered by the builders along with the one which prevails in the market. This needs to be done to check whether the builder is paying the entire interest or he passing a part of it to the buyer.
A buyer must check for the amount of discount a developer offers or is willing to pay when a buyer does not avail the subvention scheme.
SUBVENTION WITHOUT LOAN
Subvention by the developers without the home loan is another scheme that the developers are being offered. It is almost similar to the scheme which involves the loan. Here, the buyer pays 20 percent of the cost and the builder will ask the buyers to pay the rest 80 percent on possession.
PRO RATA OR PARALLEL FUNDING
This scheme has been recently becoming popular among the developers as well as banks. In the conventional home loan process, a buyer needs to make the initial contribution i.e. of 20 per cent before any bank disburses the loan. So, if a property is costing say one crore, then the buyer needs to have twenty lakhs out of his funds. The aim in parallel funding is to decrease the burden of the buyer during the initial stages.
Developers are constantly trying to establish new schemes and are modifying the old one in order to attract more and more buyers. But the buyers need to act fast as once the element of stagnancy is removed and sales pick a kick then developers might withdraw these schemes.
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