When Are People Most Likely To Turn Homebuyers?
It may seem slightly absurd that house-purchase decisions, the biggest financial transaction in most individual’s lives, are oftentimes emotionally driven. Don’t those who have made their fortune by the way of investing invariably tell us that caution, diligence and detachment are the keys to make wise investment decisions? But then, if it were not for the emotions, why would one be driven to do anything at all, wise or impulsive? A typical homebuyer ─ one who is buying a property to stay there and not to make money out of it ─ would not trifle with his lifetime of savings if it were not for an emotive disruption. Now then, what are the external factors that give our internal being that necessary push to finally take a call?
That festive feeling
Festivals are occasions when even those who are often accused of being skin-flint or Scrooges loosen their purse strings ─ that is festive spirit narrowed down for you! No wonder then that home sales see an increase during the festive season, which starts from October and lasts till about January, from Diwali to the New Year. Developers wait for the festive season to make up for any slow growth that they may have witnessed during the entire year. Apart from this, for Hindus, Akashya Tritiya that falls in the month of Vaishakh and the first day in the month of Chaitra, is also considered auspicious for booking homes. To attract buyers, developers throw open several discount offers and concessions during the festive season.
Mathematical delight
Most homebuyers these days — who are young, working professionals — opt for home loans to fund their purchase. This lot keeps a keen watch and follows every move of banks. For them, a low interest rate regime would be the most auspicious of the occasions to book their homes. Data show that after each rate reduction by the Reserve Bank of India (RBI) , home sales figures witness an uptrend. This goes further up when banks quickly extend the benefits of the reduction to homebuyers.
Striking at the right time
Recent trends also show that homebuyers utilise the opportunity to make their purchases at a time when developers may be grappling with a dip in sales and a rise in inventory. In a situation like this, prices are likely to be much lower than in normal circumstances. Data available with PropTiger.com show end-users are driving India’s residential real estate market currently, at a time when real estate developers across the country’s key housing markets are struggling with huge unsold housing stock. Unlike when the market was booming, developers are more willing to offer sweeter deals to homebuyers. Negotiation did not yield this kind of result in the booming market.
By the book
These days, educated-working professionals form a substantial part of homebuyers in Indian cities. Among other things that influence their home-buying decision are the various reports on the property market. Armed with an opinion that is formed on fact analysis and data crunching, such buyers put all their reading to good use by making a safe financial decision. They are also likely to go for places which lie on top of the heap on certain indexes and surveys. This is why cities such as Pune and Chandigarh, with their clean public image, have more takers than other Metropolitans.
Ready to go
For many, any day is a good day to book a home if they have the money. Those who need to apply for a home loan would certainly not wait for banks to reduce home loan interest rates. Then there are buyers who are in a hurry to buy for personal reasons and don’t really have the time to wait for the “right time” to make the purchase. A couple that sees that there is an urgent need to leave the rented accommodation and shift to house of its own would hardly consider the timing if they have the financial wherewithal to immediately make the purchase. This is, in fact, the buyer segment that keeps the property market going even in its weakest phase.