Secondary market also termed as the “Resale Market” is the most uncertain and unpredictable real estate market. The buyers willingness to sell changes every few days due to either new offers or his realisation that he won’t get any thing else better after he sells; or he realizes that his documentation is not perfect and either the society does not have Occupation Certificate or suddenly he gets offer which are varying from 10 to 15 percent higher which confuses him further.
The benefits in the Secondary Market are although manifold like, you get a ready possession property, your outgoings are lower, you can set off your Capital Gains easily, you can rent out the same as well. You do not have the extra levy of the Service Tax and Vat which directly saves you 3.71% + 1 = 4.71%. The downside here is that you get an older property and even if you were to do basic changes in the house, the above savings of Taxes washes away in the expense to do up the house.
However, due to a demand and supply mismatch the buyers experience is turning out sour. On an average a buyer scouts for over 3 to 6 months and tires himself, goes through a few failed negotiations and settles for the first clean deal in the market with a compromise.
On the other hand with the Primary Market with a variety of choice entices the home buyer with swanky and luxurious lifestyle homes. The latest being, the financial schemes like 10;80;10 or 20;80 etc available for the home buyer which further benefit him, if he chooses a new home from the Primary Market.
It surely is debatable that which option is right but the pendulum seems to be more on the Primary Market. The only other option for a home buyer is to lap up the investor flats as soon as they come in the market.