If we examine data collected by the National Statistical Commission (NSC) of India, we can easily deduce that India’s economy is on declining mode for the last several years. Experts even noticed a degrowth of about 8 % in the fiscal year 2020-2021 and according to them, this dilemma was caused because the government lacks knowledge and skills to manage the political economy. However, amidst this “economical chaos”, it is believed that real estate in India has been outperforming the inflation rate for many years. This means that investing in real estate can result in real profits in the long run.
In general, real estate is one of the safest and most reliable investments and usually results in high returns compared to any other form of investment. And, in India, unlike cryptocurrency, stocks and gold, the investment process in real estate is quite structured and stable.
“Real estate can make you a millionaire.” Sure, this might sound amazing but reality exists and according to that reality, real estate is also a powerful weapon that has made thousands of people homeless and jobless.
In India, many will tell you it’s lucrative to invest in real estate or that buying a house is a great deal. But, nobody will tell you about the tricks that are often used by agents in the real estate market and what happens when things go wrong.
Whether you are a home buyer or a person looking to invest in India’s real estate market, here are certain tricks often used by real estate agents.
Artificial Scarcity
This is how it usually happens: You might get an email or a message from a builder or agent with a list of available flats in India –including the price per square feet, the final price for the flat and the area. And, out of, let’s say, 1200 flats in the project, around 90-95 % of them will be marked as “BOOKED” or “SOLD.”
This list will make it seem as if nearly everyone in India already owns a flat and it’s just you, who is left behind. That “left out” feeling will give birth to an inside voice that will nag at you and say, “What are you waiting for? Go book/buy that flat now before you regret it.”
Technically, you can’t verify if these flats were really sold or booked; you just have to rely on what the agent told you.
To create that sense of emergency or that feeling that says, “Hurry, else you will lose out on that opportunity,” agents often use the following tricks:
- Sir/Ma’am, all the units are nearly sold and there are just two units remaining. You will have to book it by the end of the week or wait for another opportunity to come up.
- Sir/Ma’am, all the flats are nearly booked and this price is only for this Diwali, after which it might even go up to Rs 500 per square.
Don’t Get Tempted by Jazzy Brochures
Today, with the wide availability of software and real estate brochure templates, an agent can easily customize marketing materials to impress an audience. Real estate flyers and brochures used to be the most classic real estate marketing tools because they were fairly easy to create and could convey valuable information. However, today these same brochures and flyers are being used to “dupe” buyers and investors.
The problem is that as soon as you see a jazzy brochure with lush greenery, beautiful skies, large outdoor space, a luxurious house, you start visualizing yourself living in this world that’s beyond reality.
If you don’t want to end up being tricked by agents, make sure you visit the actual location or wait for the final “product” before you book the property.
