If you are on a look out for a home to invest in, choosing between a brand-new apartment and a resale property is bound to plague your mind. Here’s some food for thought. The real estate industry in India is booming and is expected to contribute 13% to the country’s GDP in another 5-6 years. In 2018 alone, 75% more new house-launches took place when compared with 2017 (top 8 cities). Look around you and you shall find new constructions coming up like spring blooms! There are very few things more special than owning a brand-new home in all its glory of fresh paints, untouched interiors, no damages and an absolutely stunning feeling of being the first residents. New, in every sense of the word. What then, can be your reason for considering a resale property? A barely acknowledged fact but apart from the money, there are a host of other things that you are unknowingly bartering when buying a second-hand house. You do not want to end up with the loose end of the bargain.
Here, we list a few unforeseen issues that might crop up with your decision to buy a resale property-
Hidden costs- A previously lived-in property will always come with its own needs for touch-ups, maintenance and reconstructions of some parts. Rarely, can you find a place that fits into your specifications perfectly. Moreover, sellers might not always be completely honest about why they plan to sell a flat. Imagine being stuck with a resale house that has all the plumbing equipment faulty! In contrast, a new house shall be handed over to you absolutely hassle free. Even if there is a repair needed, you know who to hold accountable for it. In a resale flat, once the deal is closed, it becomes entirely your responsibility.
Legal implications- Firstly, every developer makes sure that the property is handed over to the customer with all the relevant documents like OC, CC, Sales deed etc in place. A resale property seller might or might not be so thorough with the legal documents attached to the house. Moreover, what if the seller has not paid his maintenance amount for months? Or worse, what if there is a legal case involving the property you are purchasing? In any case, the background check of the seller shall cost you a good amount of money and precious time.
Home loan- A new house allows you a home loan tenure of 20-30 years depending upon your eligibility. However, with a resale property, the older the house the lesser becomes the tenure and the more become the EMIs. Over and above this, if the resale property is already under a loan, it might be an added hassle have the home-loan transferred.
Brokerage- With a new house, the brokerage can be completely avoidable since you can close the deal with the developer himself. However, inevitably a resale property comes with the burden of paying a brokerage which is not a small sum of money by any standard.
Resale Value- Just like a car, the resale value of a house goes down almost immediately after its sale. Hence with a resale house, you might be buying a property which might not fetch you the greatest of returns in the coming years. Moreover, the house might have been bought at a time when the loan interest rates were higher and hence that additional cost might be woven up with the cost of the house causing it to inflate.
In the current digital age where all the developers have become quite transparent about their dealing with the customers, there is little or no reason to buy a resale property in an area where a brand-new flat is readily available. For instance, our project Mohali Hills has brand new inventory that can be readily possessed instead of investing in a resale deal in the same project. It is after all the decision of the buyer where he/she wants to spend the hard-earned money but, in the end, we request you to sit back and review your decision before taking the plunge. Will the bargain be worth the additional life-long troubles that tag along?