Bangalore : After the disastrous prophecy about a drop in property prices, over the past couple of years, many of the home buyers prefer to invest in resale flat. A few of us wish to buy a resale flat as they feel buying a new flat will take a long time and the resale flat will be prepared with ready to move in tag. For conscious buyers, is it wise to buy resale flats? Rather than waiting incessantly in the hope that realty prices falter, searching for the best option which offers good solution is sensible. Nothing can be more lucrative than purchasing a flat/apartment at a value lesser than a market rate. In addition, resale flats might be good and fully constructed which are obtained at rebates. The cost saving alone, not only makes resale flats as an economic choice, it also offers tax benefits after possession.
It is sensible to first comprehend the factors and measures before buying a resale flats. If all factors work in great deeds, investing in the resale property is a wise decision and it additionally helps to save money where as to wait for a long time to complete the project.
The price of resale flat may vary depending on many factors such as location, Age of the resale flat, city, brand name of the project associated and many others. The discount depending upon the city and location of resale flat varies between 5% and 18%.
Pros of Resale flats:
The primary advantage of obtaining resale flat is buying a flat in a strategic location where there is no new supply. The resale residential property which has more than 20 years of age positioned in a strategic location where there is a high demand with no supply then this can be a good investment wager.
- Purchasing a resale flat of any sort like newly constructed, older flat or ready to move flat is beneficial in several ways. Every kind has its own advantages.
- Whenever the property market evades the reach of any individuals, for every home buyer there will be a hope of resale flat at a less expensive cost.
- In case of resale flat, you will get what you have seen there will be no variations.
- In case of buying under construction property you need to pay rent and EMI; however buying a resale property helps to save money.
- You can confirm legal titles and can be confident of legal status
- You can occupy the resale flat immediately there will be no waiting period
- Transparency on residents and composition of maintenance charges.
- There will be no shrouded features, once you own resale flat everything will be in front of your eyes.
- Compared to under construction property the immediate possession of resale flat can offer tax benefits from the first EMI and Home loan interest will be low.
- Resale flat gives lucidity on final price to be paid.
- Resale flat offers a chance of examining the quality of construction with the help of the structural engineer.While people were staying already, you can check out the facilities nearby such as schools, colleges, malls, supermarkets and many others.
- As you get a fair idea on market trends you can pay the right price.
Cons of Resale flats:
- In case of resale flat, no major structural changes are possible
- Society rules may not suit you and you can’t change them as well, whereas in under construction property the rules can be framed by your discussions.
- The Down payment will be more for resale flat compared to the payment asked by the construction companies.
- Resale flat includes few obligatory expenses such as registration charges, transfer fees, stamp charges, utility transfer fees and many others.
- If you are planning to revamp the entire home it will cost you more.
Are Resale flats always cheaper?
No, in tier I & II cities where there is a scarcity of new residential properties, then there is no question of cheaper rates. Where the market is competitive there the discounts are more dominant. These resale flats can be sold by investors or primary owners. In payment terms there is a higher possibility of flexibility.
Credits Silicon India