Wait and Watch Syndrome - The Property Buying Code

Property buying is one of the biggest investments an individual does. The real estate market scenario in India fluctuates without any prior notice, so here "Wait and Watch" syndrome plays a big role. Property buyers usually wait and watch the real estate market tendency, which also includes the home loan interest rate and other aspects. Pricing is the biggest consideration taken in this syndrome. It is said that, buyers usually wait for lower interest rates on home loans, which is partly true. However, low interest rate isn’t the only thing considered be it affordable housing or mid-range housing buyers. Other aspects like the location development, political scenario and personal issues do lead to the wait and watch syndrome.

As per Ashwinder Raj Singh, CEO, Anarock Property Consultants "Those who wait and watch for the price correction do engage in calculated risk at the best". The buyer may also get inputs from different sources of property price prediction.

Proven Strategy:

Property experts believe that postponing the purchase of the property for the next 6-9 months will certainly help in entering at the lower levels. This will further help the interest rates to move down in these months. With the RERA coming into the role, wait and watch syndrome is highly beneficial.

Property in the growing economy is always appreciated over the long term. However, it depends on the changing market of real estate. The best way is by waiting for the developer to offer flats in discounted rates. Some property may have higher-than-anticipated holding capacity and sales volumes through negotiated deals.

In metro cities like Mumbai, Bangalore, Chennai and Noida, freshly launched and under-construction projects are sold in lower rates. Developers are offering official discounts to serious buyers to sell out the property rather than keeping it on standby. The best course of action to be taken in current situation is investing on the RERA authorised project and negotiate in the best deal.

Crucial Market Ahead:

Real estate market has dramatically changed for both investors and home buyers. Over the years the interest rates has largely dropped. Furthermore, developers have been offering lucrative offers resulting to saving on purchase. The next 12-18 months is considered as the crucial period in India due to increase in the political scenario (upcoming elections in few states) and other aspects. Waiting and watching has certainly become the chronic habit of buyers and investors which is difficult to avoid.

However, according to Anand Narayan, National Director of Knight Frank India, while the industry will face bad to worse situation, buyers could get some good property options in Mumbai and other metro cities. Sales have slowed, though the liquidity issue is not as widespread. It may become acute in some time. Developers are already offering some discounts. But I see little room for prices to drop in projects that were launched earlier. Doing so would mean offering prices lower than what existing customers have paid," he said.

The question is whether one should attempt to time the market. The answer depends on who is asking the question. If an investor asks it, there are still at least two answers — wait and watch (prices may reduce in your location) or buy now (your identified location will not correct, only appreciate). If a first-time home seeker asks it, the answer would be, “buy what you can afford, when you can afford it.”