7 reasons Indians prefer second-hand property
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7 reasons Indians prefer second-hand property

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 :

  1. Buying under-construction property is a double-blow – Paying rent and EMI : 92% (of the survey respondents felt so)
  2. 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.
  3. 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.
  4. Scared of going to consumer courts : 72%
  5. Faulty design or construction : 70%
  6. Tax benefits can be availed only after getting the possession of the house : 68%
  7. 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.

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