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Developers use suitable payment scheme to revive the slowing property market

Buyers do not want to pay both the EMI as well as rent

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To push the piling inventory sell, the developers are using all tricks from the book. They have started selling the flat 10:90 or 20:80 scheme where the buyers has to pay only initial booking amount and remaining on the time of flat possession.

According to property experts, it is the win-win situation for the potential buyers and sellers as well. "Market is so down that no sell is happening. The reason can be attributed to the soaring property prices and volatility in property market. Therefore the buyers are in wait and watch position. Nevertheless, the sell is happening in the scheme where buyers feel comfortable to pay the initial amount," said Pankaj Kapoor, managing director at Liases Foras, the real estate research firm.

Kapoor said that buyers do not want to pay both the EMI as well as rent. "It really pinch them because the salary has not increased in the proportionate of the property prices. Therefore, buyers are in search of comfortable paying scheme and developers are offering it so there are many takers for this easy pay scheme," Kapoor said.

He said these schemes are one of giving discount to buyer in different form. "If someone is buying the house and developers complete the project in four years so the four years EMI has been taken care by the developer in this scheme. So, the buyers get huge discount. On the other hand, developers get the loan in cheap rate rather than private market rate therefore people prefer to buy the house through these schemes only. There some developers who are asking to define the payment so the market seems to be consumer driven currently," said property experts.

Nayan Shah from Mayfair housing told dna that these scheme are selling like the hotcake. "We are giving these schemes –suitable to buyers in all our projects. Let the buyers decide their mode of payment. As a result, the property sale has been picked up," Shah said.

Earlier these schemes were notched up the central bank over its model of sustainability and complex payment structure. However, developers and buyers approached the bank and convinced the need of these schemes to revive and remove the glut in the property market.
 

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