Why This Akshaya Tritiya Is More Auspicious For Investing In Property

Even the most impulsive buyers patiently wait for the right occasion, before they start a new life in a new home. For most people, Akshaya Tritiya is that perfect occasion, which will be celebrated on April 26 this year, amid a nation-wide lockdown.

Despite the Coronavirus-induced lockdown, developers maintain that they are getting a lot of online/telephonic inquiries and have planned initiatives that might result in actual sales in the near term.

From a buyers’ perspective, money-wise, booking a home on Akshaya Tritiya 2020, would make a lot of sense.

Before we talk about the many monetary benefits that homebuyers stand to gain, if they buy an immovable asset this Akshaya Tritiya, it would be appropriate to find out more about the occasion and what lies behind its religious significance.

What is Akshaya Tritiya?

Akshaya Tritiya is one of the three-and-a-half tithies (dates) in the Hindu calendar that are considered the most auspicious; the other two-and-a-half are the first tithi in the month of Chaitra, the 10th in the month of Ashwin (also known as Vijaya Dashmi), and half of the first tithi in the month of Kartik.

The Sanskrit word Akshaya means something that never diminishes while Tritiya implies the third tithi of a month. Hindus, as well as Jains, consider this day auspicious to make investments of all kinds, especially in gold and property. It is believed that if you invest on this day, the worth of the asset would go up in the future. Falling in the Shukla Paksha (the bright fortnight) of the month of Vaishakh, the occasion is celebrated for agriculture and related festivals in many parts of the country.

A day that is considered auspicious for both charity and investment, Akshaya Tritiya is among the most religiously significant days in the Hindu calendar.

Why book a home this Akshaya Tritiya?

If you have been holding back your home-buying plans all this while, here is why you can consider making your move this Akshaya Tritiya:

Monetary benefits

Rates are stable: Data available with PropTiger.com show that property prices remained largely unchanged in the major property markets of the country, as developers struggled to sell unsold housing stock.

After a long period of slowdown, property prices in fact currently stand at record low rates.

Price card

Source: PropTiger DataLabs

Interest rates are at a record low: The Reserve Bank of India (RBI) has brought down the repo rate, the rate at which it lends to scheduled banks, to 4.4 per cent. Following the RBI's move, several banks have started reducing their marginal cost of funds-based lending rates and repo rate-linked home loan rates. This would significantly lower the overall cost of property purchase.

Inventory overhang: Data show that the inventory stock in nine key property markets declined by 15 per cent in the fourth quarter of the financial year 2020. However, real estate developers in these cities are still sitting on an unsold housing stock of nearly 7.40 lakh units. As they try to ease the burden, builders are offering discounts on such ready-to-move-in units.

Offers on home purchase 

Amid the lockdown to contain the spread of the Coronavirus, the number of inquiries about home purchases have increased, say builders.  Based on buyer interest, the developer community has launched Akshya Tritiya offers, to convert online searches into sales. Developers have also come up with specific deals this Akshaya Tritiya, including waivers on several charges, apart from offering prizes.

Under its 'lockdown offer', the Gaurs Group, for example, is asking for Rs 1 lakh as booking amount for a property. The remaining amount can be paid within 100 days. Bhumika Group, a leading commercial realty developer, is offering gold coins on every booking on their shops, commercial offices, showrooms, etc., at Urban Square, Udaipur. It has also come out with a special flexible payment plan with 12 easy interest-free EMIs options, for the occasion of Akshaya Tritiya. The booking amount will be Rs 1 lakh and the offer is valid on bookings made till April 30, 2020. According to the offer, investments start from Rs 20 lakhs. There is also an eight per cent assured rental on showrooms and hotel suites.

Bhutani Infra is asking buyers to book now and block later, by paying Rs 5 lakhs. Other offers include 12 per cent assured income per annum. At Migsun Group, buyers can book properties for 10 per cent or 20 per cent amount. The Migsun Group is also offering a six-month EMI moratorium.