Track2Realty Exclusive
Nearly seven out of ten, 68 per cent, home buyers prefer ready-to-move property because they can avail for tax benefits only after the possession of the house. Saving tax on the EMI’s is one of the big reasons why nearly eight out of ten, 78 per cent, plan their house buying.
Almost all, 92 per cent, agree that buying under construction property makes them suffer from double burden of paying rent and EMI and not getting any tax benefit. Immediate relief on rent and EMI is cited as one of the main criterion for choosing a property worth possession. Even the penalty clause in case of delay in construction is something that does not remove frustration of 70 per cent of the buyers.
Manoj John, Vice President, Corporate Planning & Strategy with RNA Corp believes that the real question is the purpose of purchasing a property? “If it is for investment then property under construction is generally preferred; first-home or self-use buyers tend opt for ready-to-occupy flats. End users hoping to buy their first house look for ready-to occupy apartments, as this will save them from the rental payments of their current accommodation. In some instances the buyer also wants to de-risk himself from delays in construction and is ready to pay a premium for ready-possession properties. However, from an investor’s point of view, ready-to-occupy flats would fetch lower returns on investment vis-a-vis flats under construction, even though there are far lesser risks associated with the first option,” says John.
Furthermore, in case of just launched projects, the majority of the buyers, 64 per cent, believe the developers’ assurance to the buyer of no loss by notifying the penalty clause for deferred delivery and construction-linked payment plan is just a marketing gimmick to retain a buyer and crack a deal.
Over promising by builders is something that deters nearly eight, 77 per cent, home buyers. Any promise by the developer that is forward looking (for instance, municipal water supply after 3-6 months of completion of project) is looked with disbelief by almost all, as many as 90 per cent, the home buyers. They all believe that once the objective of builder in selling the flats is over, he would be least interested in the problems that people in his project face.
…..to be continued
