In India flats price corrections in smaller cities and some pockets in major cities has prompted some of them. Reason by the rise in both prices and interest rates.When real estate agents show major cities flats that are for resale along with new ones in apartments that are just about to be completed or have just been completed.
The resale flat, which may be in perfect condition, would be nearly 15% cheaper than the newly-constructed flat.
Saving 15% is a huge relief when the prices and interest rates are above double digits. Last one year, home loan interest rate raised nearly 2%.
Advantages of resale property
* Resale property is that you can move in immediately.
* The carpet area may be higher.
* With an under-construction property, the end product may not be what is promised to you.
* There have been several instances of builders promising to complete the project in a particular period, but failing to stick to the deadline. some major cities construction period increase to few years.
* Also, there have been instances of buyers being cheated on the carpet area.
There is a big difference in how you buy a new property and a resale property.
New properties are sold by developers, who have offices to facilitate such sales. But, to locate a resale property, you need a real estate broker or agent. Agents are localised and are well known in their areas. Agents will tell you at what prices recent transactions have happened. They will also guide you on the finer aspects, like the water supply, transport system and the type of gentry that resides in the locality. But, same time very careful with these agents. Basically many brokers liars.
Also consult with a good lawyer, who will ensure that your paper work is in order, which is very important, especially in case of resale flats.
One may needs to check the entire history of agreements pertaining to that property.
Always insist on the ‘chain of documents’, all the agreements effecting ‘buying and selling of property’ till date since it was constructed. If you were to go for a housing loan, the bank will insist on all the documents, failing which your home loan may not go through. So if you are going for a loan from a bank, before paying the token amount, do ask for all documents.
If a property is for resale, then it usually is the building managed by a apartment welfare society.One need to check if the seller has cleared his dues to the society.
To get a home loan, you will need a NOC (No Objection Certificate) from the apartment society, which will be issued only when all the dues are clear.
If the building is old and the society is collecting extra funds for maintenance purposes, then you ought to factor that in while making your purchasing decision. It would be wise to meet an office bearer of the society to make sure that things are in order.
In addition, one needs to check if the electricity bills, phone bills, water bills and all other utility bills have been paid till the time you have taken possession of the property. Also check out things like the plumbing and the quality of wiring in the flat.
Next very important check point, parking space. Today, in metro cities, like Chennai, Mumbai, Delhi parking comes for a high cost.
Many a time, a flat owner eager to sell the property may tell you that parking is not a problem. However, when you move in, you may find it to be otherwise. You may be forced to buy a parking space or may not get space to park your vehicle. so you park car on the road side. It will be a lot of problem for you.
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