Are you running out of patience while planning to purchase a property? Sometimes getting possession may take 3 to 4 years. Now, to shun such delay, many decide on buying a resale property. Well, when you plan to invest in a property; new launch projects vs resale property; is always a dilemma.
New Launch Projects vs Resale Property:
New launch projects are those in which developments are under construction. In these properties the developers sell their units off the floor plan. At times, the developer builds a mock-up of the layout to help potential buyers visualise the space and placement of furniture.
While, resale units are completed properties. The buyers may step into the actual unit to inspect what they are going to pay money for.
Initially, it may be thought that the resale unit is a better investment choice primarily because the buyer can see exactly what she/ he is getting.
Has the unit been airy? Is the view blocked? If the clatter from the busy road below travelling up into the unit? While buying a resale unit, the buyer can gauge for herself.
Secondly, as the resale unit is completed, the unit can be used straight away. In a new launch project, the property may take up to 5 years to construct. This results in loss of gratification of property, or loss of rental income.
Whether to Buy a New Launch Projects or a Resale Property
Making a choice largely depends on individual’s needs and requirements. Well, there are other factors to be taken into consideration as well. There are plenty of options available in the new property as well as in the resale market. You cannot the fact that both types of properties have their set of pros and cons. There are various factors that lead an individual’s choice for buying a resale or new house.
Advantages of buying a new launch project
- The buyer enjoys low instalment repayments
- No depreciation of the asset prior to completion of the property.
- The maintenance cost of new housing is nominal
- It is always cheaper to buy a new launch project when it is not complete.
Important Checklist for Buying Resale Property
Confirm if the property has the government registration. Ensure that all the documents associated with the registration of the property are available. Consult legal experts if required to verify the authenticity of the papers.
Understanding the debt status is an essential part of the checklist for buying resale property. In case the property is under mortgage, then confirm it’s debt status and if it has relevant approvals from authorities or not. Ensure if the property tax, society tax, water charges, and electricity bills are pending.
As you are buying a property already been in use for years, you may need to put in money to repair all the wear and tear of the structure. So, plan a budget accordingly.
In India, the sellers generally insist buyers to make the payment mostly in cash. It is better to avoid a lump sum cash payment. The seller persists for cash payment to avoid tax on the gains of property sell. On the contrary, if you pay a major component in cash, you might not receive home loans for the full price you are essentially paying.
Ensure that the building is as per the plans. Consider taking the certificates of completion, occupancy and NOC or No Objection Certificate from the seller.
In case the age of the property exceeds more than 10 years, you should test out the durability of the building.
Summing up
Think about your requirement, budget and confirm the condition of the building before investing. Choose the best option.
Happy living!
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