Real estate can't be lost or stolen. It is about the safest investment in the world and is currently relevant in these unprecedented times. It is advisable that you choose wisely because home ownership is a once in a lifetime decision.
When it comes to buying a home, most of us would prefer buying a new property, but there are people who prefer a resale as it is cost effective. Before you make a decision, look at the points to consider.
There are pros and cons of new.
A fresh start in a new house is one of the biggest advantages of a New Residential Project. A new property will be built as per the latest trends in terms of well-planned layout, smart utilization of space, fixture used, provision of Ventilation, fire alarms, safety features etc. The development will cater to all age groups and support holistic living. Good social infrastructure in a home can provide good returns.
There will be a future.
Buying a brand new house, especially one which is ready to move with a reputed developer is the best thing to look out for in the current scenario with interest rates lowest in last 15 years. There are relaxations on stamp duty. If you take into account the recent relaxations in payment and the risk of clearance or transparency involved, the difference may not be significant compared to resale flat in the same area.
In the resale market.
With a new house in a development by a reputed developer, you can be assured that the project is RERA approved and all the related paperwork is done and the permissions are in place. There will be no hidden costs involved in the whole deal.
Taking into account the view you want, your floor preferences, tower location, parking needs, and so on, you can get more choices of inventory when buying a new house from developer. These properties are much more convenient than the ones where you don't have much of a choice.
Getting financing for a new property is easy. If you meet the criteria set by the financial institutions, you'll get the loan amount you need to make the purchase. It is easier to get a loan from developers who have tie-ups with the lending institutions. Flexible payment terms mean you may not have to pay the entire amount up front in one go.
A new development will be built using the latest technology advances, as well as adopt sustainable measures such as rain water harvesting, solar energy for light, and waste water management. The long run, these will prove to be cost effective.
Cons
When you invest in an under construction project, you may have to wait for possession and it can even get delayed. All of the amenities may not be ready when you purchase a property that is part of a larger development. It is necessary for you to check the project completion date and get with a reputed developer who will deliver.
It is possible that the area may not be developed as you want. It is best to look for projects with basic utility services such as grocery shops, ATMs, medical, hospitals, and schools. Commuting facilities should be offered by the developer to the nearest mode of local transportation or commercial hub.
Resale has pros and cons.
Buying a new flat is more expensive than buying an old one. The age of the property and location may affect the cost.
You won't have to wait for too long to move into an old flat. It can happen after the paperwork is complete. All the amenities which are available and come by default with the flat would be ready for you to use once you shift to a resale flat.
There are drawbacks of resale.
The evaluation of paperwork is one of the biggest points of consideration when choosing between resale and new. The risk is higher as it could be in a conflict. You need a lawyer to check all the legal and technical documents, this includes title deed, land use and approval.
There are certificates from municipal authorities. This will be an added expense.
You have to look into mortgage payment history and get a no-objection certificate from the bank. The old home loan on the resale unit should be either foreclosed or transferred to the buyer. When a bank loan is foreclosed, the title documents are only released if they are with the bank. It usually takes 2 to 3 months. To make sure that there are no outstanding dues for the unit, a no-objection certificate is required from the developer as well. There should be no outstanding dues. A transfer charge of around 25,000 is required for receiving the no objection certificate.
It's difficult to get a loan for a resale unit since financial institutions vary in the amount of loans they give. They may not offer the entire amount of the loan that you need.
Depending on the age of the property, the flat may not be as well ventilated or lack smart space utilization, and you may need to look at major repairs in terms of plumbing, electrical and other civic work. It is possible that you will want to make the flat your own. This will increase your costs. The lifestyle amenities may not be present in the development.
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