"Buy land; they are not making it anymore."
For the most part, Mark Twain's argument would hold, as the natural constraint on its supply pushes up the price of this commodity. However, excessive optimism by real estate developers can turn this logic on its head.
Today, realty companies and builders are saddled with inventories of unsold flats that have piled up in the past year or so. Their desperation to clear inventories offers home buyers the perfect opportunity to hone their negotiating skills and hunt for bargains. So even though developers make all sorts of claims about how prices are rising and only a few flats remain to be sold, in reality, they will be ready to negotiate because buyers are hard to come by and they need the cash badly.
Besides, the time has long gone when the Maximum Retail Price defined the purchase price of a product or a service. Today, two people buying the same car model from the same showroom may end up paying different prices.
Even as products and services become more or less similar in terms of the features and benefits they offer, their prices have become negotiable. The same holds true when you go shopping for a house. Our cover story tells you why, and how, you should bargain hard for that dream home you have been waiting for.
Remember, when it comes to buying a house today, you don't get what you pay for-you get what you negotiate for. What is non-negotiable is tax.
We take a look at the revised Direct Taxes Code that was tabled in Parliament in August. The government has pushed back the deadline for its rollout by a year to 1 April 2012.
It's a pale shadow of the original discussion paper, with some provisions, especially those relating to life insurance, requiring a relook. We consider how the revised code will affect your income, investments and spending.
Rakesh Rai
