In Pune, lease a flat now, buy it later

In Pune, lease a flat now, buy it later
Business Standard, March 6, 2009, Page 4

BS Reporter / Pune

Shrinking sales of luxury residential apartments have led a prominent developer here to offer these on an 11-month lease, with the choice of purchase to be later exercised by the tenant, once the economic slump is over.

The rent paid by a tenant who later decides to buy will be deducted from the sale price, as a down payment. There will be no compulsion to buy, says Mont Vert Homes, whose idea it is.

Another interesting aspect is that someone who chooses to move on has the option of passing on the lease to a friend or relative, and 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.

The heavy slump in the real estate market here for exercised developers for around six months. The Promoters and Builders Association of Pune (PBAP) 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.