While there are advantages associated with resale apartments, a buyer may also face some challenges. Hence, one should buy only after conducting an in-depth research.
One of the biggest perks of the resale market is that you can narrow it down to exactly where you want your home. “There are several key locations city centres across cities where there is hardly any land for new development and thus, no new projects are being developed. To live in such locations, a buyer invests in a resale flat,”. Want to buy a home within walking distance of your child’s school? Or do you want to stay close to your parents? You may not always find a new construction, but a resale flat is easy to find. To lure you to invest in a new development, developers may give you discounts and offers, but smart buyers are aware that these offers are already accounted for. Buying a resale flat means you are dealing with an individual and not a business; thus, one has more power to negotiate and get a good deal. “While negotiating, some offered to leave behind their furniture or electronic items like ACs, water heaters, etc. This may not seem like much, but if the previous owner leaves behind two ACs for the two bedrooms, that’s a total saving of approx. Rs 50,000,” “To make the sale, the previous owner had undertaken a paint job. He was also willing to leave his wall unit as it was not going to fit in his new home.
Home loan and tax benefits can be availed on the resale property as well. “According to income tax rules, interest can be claimed immediately for exemption post occupying the house. Purchasing a resale property may let you claim interest from the very first EMI. “Resale properties are also ready-to-move-in, thus saving you from the trouble and uncertainty of investing in an under-construction property. It also saves you the rent you’ll continue to pay while waiting for the property to be ready,” says Anil.
However, there is a flip side, and you should check for the following factors before investing
- Check the construction quality and do not invest if it would require extensive repairing;
- Resale properties may not have the amenities that newer constructions offer;
- Older gated communities still may offer a few amenities, but standalone buildings seldom have much to offer in this department.
“Home insurance may also become a challenge because often insurance companies don’t cover very old properties. Also, to avoid capital gains tax, the seller asks for a cash component, which not all buyers can provide – especially those availing a home loan,”.
There is a risk of legal ownership related issues too. An independent house could have legal issues related to land. There is a possibility of unpaid government taxes, bills, maintenance charges, etc on the property that the new buyer may not be aware of. Thus, always take assistance of a professional and only then invest.