What are the parameters that a first time property buyer usually goes by in his effort to acquire a home? A study conducted by the real estate website, Makaan.com threw up interesting aspects about the choices that first time buyers prefer to make these days.
According to the ‘First Home Survey’, the first time home buyers seems to be more in favour of maximum discount that comes with Down Payment (DP) plan than Construction Linked Plan (CLP) which provides protection against construction and other delays. Contrary to popular perception on CLP being the more preferred choice, the research had 41 per cent preferring the down payment option.
Going by these findings, the urge for a discount appears to be stronger than the security of a timely possession among the first time home buyers.
The DP is followed by Flexi Plan, essentially a mix of Time Linked Plan (TLP) and CLP and one that offers greater discount compared with the CLP.
In its observation, the website describes it to be an important insight into the buying psyche but limited to first time home buyers only. “For people buying their second home or someone who has experienced a delay in possession, the preference will be for a CLP,” it says. It is obvious that home buyers will realise their DP advantage only if their projects are handed over on time while a considerable delay will end up eroding that advantage.
Among other parameters, connectivity has emerged as more preferred factor than location. The preference for connectivity over location is not by choice, argues Makaan.com adding that home buyers are unable to find their dream adobe closer to their preferred location in their limited budget and are forced to compromise with an area 15 to 20 kms away from the main city.
The research which had a participation of more than 3,953 first time home buyers from across the country documented 65 per cent preferring flats/apartments, followed by independent houses or villas favoured by 21 p.c. of respondents.
