Buying a new home or an existing one (resale) is a big decision to take. While many prefer buying a new home altogether, it is also considered better if you buy a resale property as there are many advantages to it. The main benefit is that you will have many amenities near to you. You don’t have to walk for a long time in this unbearable heat to the market. For your children, the schools will be nearby and so will be the hospitals. This makes sure your family’s health is secure.
Another main benefit is of the availability of possession. While a resale flat is always ready for you to possess immediately, the same cannot happen for a new home as it is under construction and would take more time to possess. There are few factors you need to keep in mind if you want to purchase a resale property:
Age of the Property:
When we say to buy resale, it’s best to buy a fairly new property as that was recently built. You must avoid buying old property (over 50 years +) since it might have extensive repair problems. Not only that, if it indeed goes under redevelopment, then you will have a lot of problems while shifting homes. Finally, during redevelopment, you also have the issue of renewing rent agreement every 11 months which is a hassle.
Existing Mortgage:
The fear of being cheated upon in property cases is very possible. Hence please do your checks of any outstanding amount that is payable to a lender. Also, insist on the original documents of a property. If the seller has only copies to show you then it’s possible that the originals can be with a lender. Whatever be the case, please conduct proper checks of all documents.
Transfer of Property and Registration:
Whenever you plan to buy a resale property, charges like transfer and registration fees will come into play. In some jurisdictions, these charges can be so high, that you would question yourself over buying a resale property.
Utility Transfer Fees:
In certain resale properties, the transfer of utilizes must be done on your name. This also means that while investing in a resale property, you need to pay deposits and/or transfer fee for electricity, gas etc.
Brokerage:
A professional property consultant is very resourceful and can find places according to the parameters you set for a resale property. For these services, they are paid a brokerage or commission. You can avoid this by going and purchasing the property from a developer but that is a tedious job. There is a possibility of being fooled very easily here and hence it’s advisable to take help from a property consultant.
Expenses for Repairs and Renovation:
Buying a resale flat is not just calculating the cost of the property but also adding the maintenance and repair costs in it. You might want to make this house look even better and might end up refurbishing it. Hence it’s best to calculate a possible cost to the overall property value so you can accordingly make a purchase.
Facilities and Amenities:
Please note that when you buy space in an old property, the basic necessities like regular water supply, sewage facilities, 24*7 electricity and security services must be present. You must however not expect a gym, pool etc. and more parking space which nowadays is present in new properties.
Property Valuation:
Property valuation is really important as you don’t want to pay more interest or a higher amount. Hence it’s best to conduct an independent valuation of the property. A proper valuation will get you the correct rate and you will have to pay a decent down payment amount.
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