According to a recent study, when house hunting most Indians prefer to choose a previously owned property over a brand-new home. The survey by Track2Realty found three quarters of property buyers are currently in negotiations to purchase previously owned homes.
Out of the remaining 25% choosing to purchase new property due to discounts offered, an incredible 82% were regretting their decision, mainly due to delays in completion of the project. The study was carried out in major cities including Mumbai, Delhi, Bangalore, Chennai, Patna, Ahmadabad, and Patna.
It found around 68% of those choosing to purchase previously owned homes cited tax reasons as being one of the major influences, as tax benefits are only available once the buyer has possession of the property. Those choosing to buy property and construction are faced with having to pay rent and EMI, and cannot get any tax benefit until the property is finished.
More than half of the respondents surveyed were prepared to pay slightly more for a property which was already finished, as it gave them the chance to see who their neighbors would be, and to get a feel for the local community.
Around 70% of buyers are scared of purchasing homes under construction due to the worries over faulty design, and this group prefer to see what they’re paying for upfront. A massive 92% are reluctant to book projects recently launched due to the risk of delays. Another 78% feel the finished project didn’t replicate the show home, and 72% felt developers didn’t deliver on amenities such as gyms and clubs.
However the same percentage were worried about taking the developer to court due to legal costs and the sheer hassle of doing so.
With these kinds of concerns is easy to see why more than 60% of buyers would be happier to purchase a previously owned home where they can see exactly what they are getting, rather than go through all the hassle and worry of waiting for a project to be completed.