In a growing city like Pune, wait-and-watch policy may push properties that the buyers are keen on buying beyond their reach
There are many people who prefer to sit back rather than take the plunge in the hope of a price correction. The policy doesn't necessarily bear fruit. It's important to identify an opportune moment and seize it with both hands.
“Every consumer looking to purchase any product would defer his decision to purchase if he believed prices would come down. As people talk about prices dropping, buyers lap up the stories since they want to believe in them. This leads to decision paralysis among some buyers,“ says Rohit Gera, managing director of Gera Developments Pvt Ltd.
Fence-sitting is often the result of confusion rather than certainty. A buyer may have been receiving inputs from many different sources, some of which predict that property prices will come down soon. If they do, the buyer would have incurred a loss by buying too soon. If they don't, the buyer would have missed the optimal 'entry point', and certain flats which were shortlisted earlier may suddenly be off the market.“The biggest impact to homebuyers is that they continue to wait to purchase a home at the same time, continue to waste money on rent in their existing homes. In fact, only a miniscule minority can actually time any market to perfection and most people get left behind when the market corrects upwards. In many low sentiment markets, customers have been found to be left behind when the market turns suddenly. The dream home they had their eye on suddenly gets sold and by the time they find an alternative, the prices move up by a couple of hundred rupees,“ Gera adds.
Anil Pharande, chairman Pharande Spaces, says that the disadvantage of waiting too long is that the opposite of what is expected may (and often does) happen prices may rise rather than fall. “This is usually the case in markets where there is healthy demand for properties.Buyers may have taken the wrong kind of advice from people who do not understand how the local market is behaving, and what is likely to happen in the near future. The second disadvantage of waiting too long is that buyers may find that properties which they were keen on buying are no longer available,“ Pharande points out.
According to Arvind Jain, managing director Pride Group, the reasons why people who long to own a home do not take the plunge may be because they are confused by conflicting objectives and are looking at the whole issue of home ownership from an investor's viewpoint. Such a mind-set results in people either waiting for the right entry point (the lowest point to which prices will drop) or worrying about the non-liquid nature of property (gold or stocks can be turned into cash much faster if a financial crisis arises).Another reasons for buyer paralysis can be the expectations one has set with regards to the desirable size for a home. Since homes beyond a certain size are beyond their purchasing power, they plan to save until they have enough to make a sizable down payment.
Property, in a growing economy, always appreciates, just like gold does. This is an immutable rule of the market. It never does a complete about-turn to march in the opposite direction, though it will occasionally deviate from 'learned' market predictions. These are not corrections in the commonly understood sense of the term they are the minor course alterations that any market must undergo in order to adapt and stay alive. Whoever buys a house anytime, anywhere in India, does so with the knowledge that it is not only a place to live in, but a sound financial investment. If it were not so, India would be a predominantly renting nation like the US.
Akin to all mind-sets, the wait-and-watch syndrome can become a habit. The decision to postpone the purchase of a home should not be on the basis of limited information. Such a course could be self-defeating and put your dream home further and further out of reach.
“Developers will usually not come down on their asking rates, but they may offer discounts at the negotiation table to serious buyers. They may have a higher-than-anticipated holding capacity and sufficient sales volumes through negotiated deals, which makes it possible for them to hold on to their prices feasible to developers. The depreciating rupee has also caused NRI property purchases to increase in the larger cities, again making it possible for many developers with good projects to hold on to their rates,“ says Ashwinder Raj Singh, CEO Residential Services, JLL India.
First of all I would like to thank you and the Gera team for organizing different workshops at our doorstep.
The best thing I have done to my kids is that I took a right decision to buy a flat in Gera.
Because of this decision , Vishnu could attend the development workshops that were conducted.
Vishnu was a shy child who didn't like to participate in any of the programmes.
As far as Dale Carnegie workshops is concerned it has given him a lot of confidence and was presenting things in a much better way and I can see a lot of improvement in him.In simple words u made a person(..
My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days...
It's a wonderful experience with the tennis academy and my daughter liked it. Also she is getting good training and love for the game.
The coaches are good and we would continue using their expertise for Nishita going onwards. We are also looking forward for signing (actually instrument) and dancing coaching too.
This is to share with you that both my little girls (Aditi Anisha) are really enjoying their Tennis classes at the Mahesh Bhupathi Tennis Academy.
I always find them very excited whenever there is TENNIS CLASS, and this excitement matters to both of us, as the kids seems to be interested.
It’s nice to see them constructively engaged, and coming home happy and having felt productive in their own child little way. It’s a great way for them to bond with other young ones and feel belonged to a larger community.
Thanks to You, Gera Developments and MBTA for giving our young ones, an opportunity for a wonderful learning experience.
Now they are looking forwar..
Regarding the workshops & different academy sessions, it has been wonderful experience so far for Shlok and we’re looking forward for the new opportunities.
It’s absolutely fantastic to have all these academies in the premises, and that too from the renowned personalities, so we can send kids without worrying about other factors like safety & all.
And most importantly, a big thanks to you for the lovely follow-ups & timely updates about the upcoming/ongoing sessions.