Shrinking sales of luxury residential apartments have led a prominent developer in Pune to offer flats on an 11 month lease, with the choice of purchase to be exercised later by the tenant, once the economic slump is over.
The rent paid by a tenant who later decides to buy the flat will be deducted from the sale price as down payment. There will be no compulsion to buy, says Mont Vert Homes, which has come up with this idea.
Another interesting aspect is that someone who chooses to move on has the option of passing on the lease to a friend or relative. The rent paid by the original occupier will, in that case, also be treated as part of the down payment if the purchase is later made by the next man.
There has been a heavy slump in the real estate market in Pune for around six months. The Promoters and Builders Association of Pune had recently announced a number of schemes to promote sales.
Says Mont Vert's managing director, Jayant Kaneria, "By May-June this year, we will have a certain number of apartments ready to sell, which have not been booked so far. When people are finding it difficult to buy flats for fear of losing their job, we want them to give a sigh of relief. We are targeting families that earn up to Rs 50,000 a month and would buy an apartment once the economic slump is over.
"It is not mandatory for tenants to buy the apartment once the lease gets over. They can simply leave or transfer it to any friend or relative. In this case as well, the rent paid by the (original) tenant will be deducted from the final sell price," Kaneria added.
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