Indians prefer second-hand property

Mumbai: While buying a house, majority of the Indians prefer a ready-to-move property than new launches, a recent study reveals.

"About 74 per cent 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` indicated.

The survey says out of the remaining 26 per cent, who opted for new launches for price discounts, as many as 82 per cent 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 per cent 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 per cent 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 per cent 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 per cent buyers for reluctance to book a new launch.

Faulty design or construction scares 70 per cent of home buyers, who opted for "you get what you see" projects. "About 78 per cent say they have not got what was showcased as the sample flat," the survey adds. Around 72 per cent respondents complained about developers passing off cafeterias as "clubs" and under-equipped gyms.

Also, 72 per cent were scared of going to consumer courts and face the legal hassles. More than 62 per cent, therefore, said they preferred to settle for a flat in the secondary market.