Connectivity and down payments – a boon for first time home buyers
With more and more fluctuations happening in the real estate market of India, there is increased number of actions happening in the property market. One of the greater impacts of the real estate change in today’s world is the increased number of property investors. Various reasons like a decent economic growth, high disposable income and easy availability of finance has resulted in the easy access of property buying. Most of the young Indians today own a home or an apartment in India with innumerable amenities and a high end lifestyle. Today maximum number of Indians looks at a real estate investment as the best investment.
First Time Home Buyer
First time home buyer today is quite comfortable while investing in a property, perhaps there are few questions which he considers important, like the type of a builder, which project, size and location and the type of builder. Various cities like Bangalore, Mumbai, Delhi NCR, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Chandigarh and others have been witnessing a greater change in the real estate.
Impact of down payment and the CLP for a first time home buyer
One of the main reasons for the increased amount of property buying is that most of the home buyers prefer down payment (DP) plans. A down payment plan comes with a maximum discount which apparently increases the demand for the discount among first time home buyers. Apart from just the down payment aspect most of the home buyers prefer the Construction Linked plan (CLP) which provides protection against the construction and other delays. However, the urge for the discount is stronger than the security of a timely possession for a first time home buyer. Also most of the home buyer prefers the Flexi plan (FP), as this plan also offers greater discount compared with CLP.
The first time home buyer will definitely opt for the DP plan as he would have not have predicted any delay in his project. Perhaps a second time home buyer would go in for a CLP as he would have witnessed a delay in the project. A first time home buyer realises the DP advantage only when he gets his project on time.
Impact of connectivity and location on first time home buyers
In the past few years, most of the home buyers considered location as an important aspect before investing in property. However, today, about 18 per cent of the home buyers prefer connectivity and public transport as an important aspect before investing in any project. Apparently, the location aspect would fall in the third category list of preference and forms an amount of 8 per cent of home buyers. One of the eternal important aspects of about 58 per cent home buyers is the price of the property.
Most of the home buyers are forced to choose the connectivity rather than the location as they do not find their dream home closer to their preferred location and are henceforth compelled to compromise with the areas closer to the main city. In most cases the area which is easily connected and has public transport is preferred by most of them. Over the past few years it is seen that the areas which are connected to the city metro or highways are preferred more rather than other areas.
Things to know before buying a property
1. Around 41% of the first time home buyers prefer the down payment plan.
2. Only 5% and 1% opt for Independent/ Builder Floor and Service/Studio Apartment respectively as their investment options.
3. About 18% of the home buyers prefer connectivity and public transport as an important aspect before investing in any project.
4. The location aspect would fall in the third category list of preference and forms an amount of 8% of home buyers.
