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Builders lure uncertain buyers

With nearly half of the city’s homebuyers deferring buying houses, developers are coming up with innovative schemes to lure them, reports Naresh Kamath.

india Updated: Feb 04, 2009 00:56 IST
Naresh Kamath

With nearly half of the city’s homebuyers deferring buying houses, developers are coming up with innovative schemes to lure them. Two developers have introduced schemes where buyers only have to make a part payment initially, and pay the rest on possession of the flats.

Unlike the conventional method, where the amount is paid slab-wise according to the amount of work done, here the balance is paid only after buyers gets the keys of the flat.

Buyers taking loans can start paying Equated Monthly Instalments after taking possession.

Developer Vijay Associates, with 800 flats from five projects spread across the city — in Oshiwara, Goregaon, Borivli and Dahisar — has introduced a scheme where buyers have to make a down payment of 20 per cent of the total cost of the flat. The remaining 80 per cent would be paid after the buyer gets possession of the flat.

Naveen Makhija, director, Vijay Associates, said that scheme had been launched to tackle the uncertainty prevailing in the realty market.

“Currently, buyers are reluctant to buy in under-construction projects as they are not sure when these would be completed,” he said. “Another problem is the uncertain job market and high interest rates. We have addressed these issues.”

In this scheme, buyers get up to two years to raise the balance money, he said.

Makhija said he had tied up with the Axis Bank and State Bank of India and would pay the interest to the consumer in the interim period between the booking and taking possession of the flat. “It is imperative for us to complete in time,” said Makhija.

In case of Vijay Associates’ Imperial Heights Projects in Oshiwara, which has 1,300 sq ft flats priced at Rs 10,250 per sq ft, the total cost works out to be Rs 1.33 crore. Of this, the buyer has to pay Rs 26.65 lakh (20 per cent of Rs 1.33 crore) as booking amount and the remaining Rs 1.06 crore when he gets possession.

The Nirman group is doing something similar in Neral where it’s constructing 250 flats. The flats are priced from Rs 3.99 lakh onwards (for 235 sq ft). Buyers have to pay Rs 1 lakh as initial amount and the rest after possession. “It (the scheme) is tailored to suit the common man,” said Ajit Marathe, director, Nirman Realtors and Developers.