Which property is better between New and Resale? This question is no less than a never-ending debate in the business world. While some people prefer to buy a newly-built apartment, others are still supporting the idea of purchasing a resale home. However, taking a call on whether to invest in a new flat or a resale one might be difficult.
If you too are confused and can’t make up your mind about the same, read this blog. In this post, we will present you a comparative analysis of both the properties that will help you in making a firm decision.
Firstly, let’s begin with the pros and cons of a new house:
One of the most significant advantages of buying a new home is the availability of options. With a plethora of options available in the market, you can choose any property that matches your preferences.
Moreover, you cannot ignore the fact that a new home comes with the latest fixtures and fittings, which assure you a hassle-free performance for a longer period of time.
Another good thing about buying a new property is that it adds more value to your living standard in terms of technological aspect. The condition of a resale property might seem to be fine but it would not feature the latest technologies.
If huge electricity bills are genuinely your concern and you wish to invest in an energy-efficient structure, new property is practically a better option than a resale unit. Nowadays, most of the newly-designed homes come with energy certifications covering walls, roofs, windows, doors and even appliance packages while resale homes usually don’t offer such certifications.
Besides these aspects, resale value of a 20-year older home will not be the same than that of a 5-year-old home.
Not to mention, with Real Estate (Regulation and Development) Act (RERA) in place, under Clause 14 (3), developers are liable to fix any structural defects for five years after handing over the possession of the property.
Is there any disadvantage of buying a new property?
Well, not really. But in case of an under-construction property, one may have to face construction delays due to numerous reasons.
Let’s move on to the pros and cons of resale property.
Resale property
Sometimes, most central locations in metro cities don’t have enough space for a new housing project. In such cases, a resale property emerges as a viable option for the potential buyers.
When you opt to buy a resale home, you can simply eliminate the risk of project delay as there is waiting period. You can also avail tax benefits on the EMIs if you take the immediate possession of the resale property.
Furthermore, verifying the legal status of the property is quite easy in the resale home as compared to the new property.
Are resale properties cheaper than new ones?
Not always. This depends on the age of the property, location, and the amenities. It often happens that an under-construction flat is cheaper than a resale house. Though in some cases, the resale property may be slightly cheaper, one must not forget to consider the overall cost of renovation and refurbishing.
Unlike the newly-constructed property where developers offer multiple payment options to their buyers, in a resale property that might not be an option as one has to arrange for finances in short notice.
How can you get a good deal on resale properties?
Many people purchase a new vs resale property for a sole purpose of investment and they even get a pre-launch or new-launch price benefit. But after a few years, those investors generally offer that property at a much competitive rate than the builder. In such case, one can steal the deal.
Apart from this, many times the owner is in hurry to sell his house. This could happen because of numerous reasons such as city or country change, moving to a bigger property etc. This can be a good opportunity for a potential buyer to grab a good deal.
What about the home loan?
The process of taking a home loan on a resale property is quite similar to that of a new one. However, the list of documents would be lengthier as one has to present the documents stating a change in ownership. While several major banks and housing finance corporations give loan for new vs resale property, there are often restrictions on the tenure for repayment. Notably, some lending institutions don’t even consider giving loans on the homes that are more than 20 years old.
Now that we have covered the basics of what you should know about new vs resale property, all you need to do is, analyze your requirements and finances and make a final decision.