Beware Of These 7 Sales Gimmicks When Buying Your First Home

Beware Of These 7 Sales Gimmicks When Buying Your First Home

By siliconindia   |   Tuesday, October 22, 2013

Bangalore: As the real estate sector has become less transparent, so too have developers. To sell projects, developers are applying several marketing and sales strategies to entice home buyers as well as investors. Sometimes for a home buyer, buying a house costs them their entire savings for life. So, it is important to be careful when planning to buy a house as developers set many traps in the market to attract buyers. Below listed are few sales pitches that you should be wary of, reports Amit Shanbaug of Economic Times.

“Buy Now or else the prices may increase”

Property prices never go down- the very first thing developers tell you when you start seeking a new house. In other words, there’s no fixed time to buy property. It is better not to restrict yourself from buying a house as like other asset classes, property also goes through ups and downs. In fact, property prices are witnessing a drop across the country. Even developers are sitting on a bulk of unsold inventories for last 1-2 years. So, if you are planning to invest in this sluggish market, you may get good bargain.

"No one can predict the rent a property will fetch in the future. These days, a reasonable annual rent is 4-5 per cent of the value of the property. However, in most cases, it is not possible to earn this much because property prices are very high," says Pankaj Kapoor, managing director, Liases Foras, a real estate rating agency.

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