There is a reverse concept which few builders have adopted by charging premium from initial set of customers so called Loyal Customers and later on offering far better rates to late comers.
Real Estate market is in a state of speculation with weak demands and in the current situation it will take time to take off again.
It has been seen widely that hype created at inception of project launch made customers paid more ..say 200 extra per square feet. Few developers positioned that only few towers are launched and remaining towers will be launched at a premium. Does this really happens..the answer is no. Initial buyers who have paid premium get to know or at times do not get to know that new towers have opened at the same price and older towers prices have been reduced.
The premium which an initial buyer had earned over six months window is gone with remaining units offered at a discounted price.
In a way, few developers are trying to cover up their marketing spends on launch by extracting more from initial customers & when project gets established and gains positive word of mouth in terms of faster off take, prices are reduced to liquidate inventories faster without marketing spends.
What does this all indicates for buyers? Let's understand this into more detail
No loyal customer concept
Initial set of buyers who paid premium on the pretext that builder will increase price in near future will have to wait for years to get break even or slight upside.
New set of customers who bought at discounted price will offer at discounted price in resale as a result initial buyers will not be able to command premium in market.
Initial set of buyers holding time of a property will always be long and they will not be able to recover interest cost also.
This will bring unrest among buyers.
Buyer who wish to sell is going to have a hard time to find buyer and premium as new buyer will get better rate from builder directly.
Few developers sales pitch and strategy is very strong that it tends to pull customers to pay premium.
It is advisable to take consulting from an independent source that does not have any vested interest involved in pushing a project. Property Eye Opener helps people with real-time analytics showcasing unbiased and unfiltered facts for taking the most perfect decision. We shall be detailing more into this segment in our upcoming posts with some of the most promising & pathetic launch and the factors which would fuel growth & gives loss in ROI's.
It is your hard earned money so it is always advisable not to take rushed decisions and not to fall prey in the trap by trusting people who have vested interest involved in pitching a particular property. Consult, Think, Analyse & take informed decisions.
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