74% of home-buyers across India prefer second-hand property (pre-owned, if you are looking for a euphemism). Second-hand doesn’t necessarily mean occupied by someone else but preferably a second-sale which provides a ready-to-move-into property for the buyer and a return on investment for the seller.
The reasons for buying a house (flat) can vary. But mostly it falls under two categories: Investment or Tax Saving. Of course living and not paying rent (but paying EMI) are other obvious options. Second sales typically rise from the investment option. These second-sale properties also command a premium.
Home buyers are ready to pay the premium because they know exactly what they are looking for. A ready-to-move-into property is also the best option for people who can’t really visualize things (like me). Usually these are common phrases in the real-estate speak: There comes the club house, there is the swimming pool and there is the new 8 screen multiplex. A vision is a must to decipher the real-estate gobbledygook. More than vision, one needs gumption or blind optimism.
The survey by Track2Reality seems to throw out some obvious but never-pronounced reasons for buying a ready to move in property. After reading them, they don’t sound like a bad list at all. In fact, this list could serve as a checklist if you are on the lookout for a property. Never go home-shopping without this list.
Here are the top 7 reasons for buying a second hand property :
- Buying under-construction property is a double-blow – Paying rent and EMI : 92% (of the survey respondents felt so)
- Delay in delivery: 92%. I am yet to hear a story where the builder has delivered a flat on time. Almost in all the cases, the buyers wait for it to complete. The penalties which are laid out in the agreement are never really imposed.
- What you see is not what you get : 78% (Don’t go by the model flat). Model flats are built with a single point agenda : To entice the buyers. Entice could easily turn into deceiving. Not all flats will get the same aesthetics.
- Scared of going to consumer courts : 72%
- Faulty design or construction : 70%
- Tax benefits can be availed only after getting the possession of the house : 68%
- Making sure of neighbors and overall community : 52%. This sounds silly and probably wouldn’t feature in any of the home-buyers checklist but this should be part of everyone’s checklist. Of course, this is only possible if the property is fully built.