While obtaining home loans has become easier, the loan amount -along with the EMI (Equated Monthly Installment) thereon – is quite high due to high apartment prices making home buying a challenging task for most people. Add to this, the already depressed business conditions where job security is uncertain. In such a scenario builders are offering various payment options for under-construction and ready possession flats.
A builder in Delhi (name withheld on request) has announced a ‘no pre-EMI’ clause till possession of the property. Customers are asked to pay 10 per cent as the booking amount, followed by 80 per cent of the amount within 45 days from bank funding. The remaining 10 per cent can be paid on possession. In effect, all the EMIs on the housing loan taken by the buyer are paid for by the builder and the buyer starts paying EMIs only after possession.
Earlier this year, for its upcoming commercial project, another leading builder from Chennai had provided an option whereby consumers paid 40 per cent in three months and take possession, while the balance was to be paid in 15 months. This move pushed sales of commercial premises substantially. Yet another case of a builder coming up with an innovative solution for offloading excessive inventory is that of Royal Palms India which is selling apartments in a 240 acre complex at Goregaon East.
“Palms Residences” are being offered to buyers on a READY POSSESSION basis in such a manner that the buyers don’t have to take a home loan for the property. Buyers can immediately move in by paying a small percentage of the total cost and the balance can be paid over a period of time just the way it is in housing loan installments. So instead of paying EMIs on Home loans the buyer pays the EMI to the builder…. without the interest burden.
Palms Residences project comprises of over 400 flats of 1BHK, 2BHK and 3BHK sizes. These are Ready possession, fully furnished, with occupation certificate, clear title, up market A Grade construction and to book these one just has to pay 30% down payment and the balance in 36 interest free monthly installments. The company – which is a pioneer in affordable housing – has kept prices at almost 40% below the average market price in Goregaon East. Located within 10 minutes of drive from Powai, Western Express highway and Marol ‘PALMS RESIDENCES’ thus offers apartment with modern conveniences of easy loans especially to the families working on the EMI formula.
Says Dilawar Nensey, Jt Managing Director, Royal Palms Estates P Ltd, “Since the realty market is down we thought of working out a way for people to be able to buy their permanent dream home as also offload our inventory. We are a zero debt company and would prefer to pass on price benefits to our customers rather than pay heavy interest burden on term loans. Royal Palms philosophy remains focus on product quality at competitive prices.”
The company has priced apartments at PALMS RESIDENCES very reasonably at Rs 75 Lacs for a 1 BHK, Rs 1.13 Cr for a 2 BHK and at Rs 1.50 Cr for a 3 BHK. To give an example, on purchase of a 2BHk flat, the buyer would pay Rs 33.90 lacs upfront and take immediate possession of the property and pay the balance amount by way of monthly installments of Rs 2.19 lacs. The approx savings in interest outgo – when compared to buying the same property through a home loan – comes to a whopping Rs 1.04 crore.
For most Mumbaikars buying a home is a once-in-a-lifetime task but due to lack of budget or the high prices of properties coupled with heavy EMIs it becomes a nightmare at times. The offer of Palms Residences is rare solution and opportunity, which would benefit both the parties and present a Win-Win situation for all of them. Above all, the buyer is safe from falling into a debt trap of paying the principal home loan and interest for years and years.