The traditional norms of second homes have undergone a paramount shift in the recent past. Suraj Uchil gets you some significant insights
Second homes are no longer the properties of only the rich and the elite. Slowly, even the middle class segments have started entering the fray. They are now seeing such homes are feasible getaway investments. With the phenomenal opportunities that the country now offers, more and more people are looking for a second home away from the stressful, hustle and bustle of city living. Also, with the rise in the purchasing power of the consumer in the last decade or so, the primary second-home buyer segment is now the middle-to-top management and entrepreneurial class, usually in the age bracket of 35-45.
One of the other main reasons for the increasing second home market is also the pre-launch schemes, which have been having a positive effect on the buyer’s mindset. The pre-launch offers are very much in play in the first home properties and are slowly making their way in the second homes market. Home buyers are lured by some exciting offers and discounts during this period.
Rishi Das, an accountant working in Vikhroli and residing in Navi Mumbai, feels that these pre-launch schemes have helped him take the risk of investing in a second home project in the outskirts of the city. “Usually, middle class people are content with having just one home to their name, somewhere in the city. But, with these pre-launch schemes in the second home projects also, we tend to save around 20-25% of the total cost of the property. This is a game changer at least for people like us, who have a fairly secure job and can thus take a plunge. And, who doesn’t want a second home to go to for a break from this busy city,” Das explains.
While the scheme benefits the buyer to a large extent, the plan is also equally beneficial for the developer. Yogesh Salunke from Blueberry Marketing states, “By getting confirmations in the pre-launch, the developer is able to get some funds in his hands for the completion of the project. If not for these funds, the developer would have to take loan from financial institutions at an interest. Many a times the interest rates are steeper than the discounts that we offer to the buyers. Hence, it makes a win-win situation for us to use the funds that we get from the pre-launch for the project rather than to go for loans. The buyer is also equally happy as he gets the property at a cheaper rate than the ongoing market rate.”
Not just about rates
The difference between a launch and pre-launch project is 25-30 per cent. But, getting the property at a cheaper rate is not the only benefit that home buyers get. As Santosh Naik, MD and CEO of Disha Direct explains, there are more benefits to buying projects in pre-launch than what meets the eye.
“When one goes for booking a project in pre-launch, they have a lot of variety and options to look and choose from. By the time one goes to buy a property from a completed and properly launched property, many of the flats would already be booked. So, at times, they might not get the flat of their choosing or liking. But in pre-launch, they will have more options and more varieties to go through and select their flat. Also, many of these second home projects get appreciation on their value in as soon as six to eight months of the project completion. So it’s always a benefit for the buyer to invest in a second home during the pre-launch period itself,” says Naik.
About their Lonavla project, Naik says, “Our project in Lonavla is spread over five acres, touching the old Mumbai-Pune highway. The location very good with a great view, and it is launching in June.”
Though the pre-launch offers are themselves a hit with the masses, the developers are keeping no stone unturned to attract the buyers and are introducing many more offers in the play entice buyers. For example, the Blueberry marketing’s second home project in Vangani has a rent back offer going on, where they will pay a certain amount of loan EMI every month to the buyer till the possession of the flat is done. This not only reduces the burden on the buyer to some extent but also keeps the developer on their toes as they would want to finish and deliver the project on time.
With increasing demands, every year there is a rise in the number of transactions for second homes. Basically people prefer second homes in a great location. It can be your vacation home away from your daily routine, which will enable you some leisure. It will give you good returns, and is a self-financing option, if you give it out for rent. Thus, the weekend or second home has advantages depending on the individual and the benefits he wants.
“When one goes for booking a project in pre-launch, they have a lot of variety and options to look and choose from. By the time one goes to buy a property from a completed and properly launched property, many of the flats would already be booked. So, at times, they might not get the flat of their choosing or liking.”
- Santosh Naik, MD and CEO of Disha Direct