Indians prefer second-hand property: Study
Mumbai: While buying a house, majority of the Indians prefer a ready-to-move property than new launches, a recent study has said.
"About 74 percent home buyers across India are negotiating for a ready-to-move property," real estate market news portal Track2Realty's survey titled 'Home Buyer's Satisfaction Index' said.
The survey says out of the remaining 26 percent, who opted for new launches for price discounts, as many as 82 percent were now repenting their decision, mainly due to delays in the project completion.
The survey was conducted in Delhi, Mumbai, Kolkata, Bangalore, Kochi, Ahmedabad, Chennai and Patna.
About 68 percent of buyers prefer ready-to-move property because they could avail of tax benefits only after getting the possession of the house, it says.
"Saving tax on the EMIs is one of the big reasons why eight out of 10 plan their house buying," it points out.
Around 92 percent of the respondents agreed that buying under-construction property makes them suffer double blow of paying rent and EMI and not getting any tax benefit.
Nearly 52 percent were ready to pay slightly more for a ready-to-move property because they wanted to make sure who their neighbours would be and the overall community profile.
Delay in the delivery was cited as a major reason by almost 92 percent buyers for reluctance to book a new launch.
Faulty design or construction scares 70 percent of home buyers, who opted for "you get what you see" projects.
"About 78 percent say they have not got what was showcased as the sample flat," the survey adds. Around 72 percent respondents complained about developers passing off cafeterias as "clubs" and under-equipped gyms.
Also, 72 percent were scared of going to consumer courts and face the legal hassles.
More than 62 percent, therefore, said they preferred to settle for a flat in the secondary market.