by Mr.
Adhil Shetty, Bankbazaar.com
Income tax benefits
& immediate possession are draws. But, watch out for ownership
complications
Mr. Rahul was tired
moving from one flat to another every time his landlord raised the rent. The
Delhiite decided to invest in a resale flat. In addition to a hefty discount,
the flat came readymade with an instant-shift tag.
Mr.Rahul can now
spend the money saved on interior décor & flaunt his cheap yet elegant home
to colleagues.
Rather than waiting
endlessly for the real estate prices to fall, a money - conscious person looks
for options that offer a good solution. The resale flats might be as good as
new & available at a discount of at least 10 to 15 % of the price of a new
construction.
However, does the
cost saving alone make the resale flats an economical alternative to the new?
The prices vary
depending upon a number of factors such as city, locality, brand name of the
construction firm, age of the flat & many others.
Typical
Issues..!
The resale flats are
an affordable solution to the accommodation needs of salaried individuals.
However, care has to be taken in choosing a suitable unit.
Purchasing a resale
flat often requires making a 20% down payment that may be in cash, which is
higher than that asked for by construction firms.
Resale might require
dealing with mandatory expenses like registration fees, stamp charges, transfer
fees, utility transfer fees & real estate agent fees, among many others.
Sometimes, the previous
owner may not have cleared the dues with the society or / building management,
and these would need to be doled out by the new owners.
The other corollaries
might include minor expenses allotted towards home make over, parking / or
security charges, society membership fees & a couple of other overheads.
Direct
Benefits..!
Getting your hands on
a resale property is beneficial in many ways. Whether it is a newly
constructed, ready - to - move - in flat, an older flat or / an under
construction one, every kind of resale apartments has its unique benefits.
 |
| Adhil Shetty, CEO, BankBazaar.com |
When snowballing
property prices evade the reach of an income-conscious individual, the resale
market provides a ray of hope.
You save a good
amount of money that would otherwise have been expended in paying rent or / EMI (Equated Monthly Instalment) and rent
both.
Checking
the documentation carefully..!
Everything that is in
front of your eyes is yours once you own the property.
Immediate possession
can provide tax benefit from the first EMI itself. There are some areas that
need attention when purchasing a flat from the resale market.
Checking the
documentation carefully is the foremost thing. It is essential to check whether
the seller is the true owner of the property.
It is also vital to
ensure that the seller does not have any dues to the society, building or
/against the house.
It is imperative to
check the physical condition of the flat before investing your hard-earned money
into it.
If the flat is
mortgaged with a bank / Housing Finance Company (HFC), the owner needs to
procure a document from the bank / HFC affirming that it agrees to give the
documents to the buyer upon full payment of the loan.
As soon as you transfer
the money to the seller’s account, whether in cash or / through housing loan,
the bank will release the original documents immediately, along with a no-dues
certificate.
How to
Choose?
There are certain
essentials that make the selection process an easy and productive one.
aThe
age of the property should ideally range between one to five years to a maximum
of ten years.
aKnow
about the reputation of the builder / promoter and the quality factor
associated with his past developments.
a Understanding
the reason behind the sale will help in uncovering the problems and issues with
the property, if any.
a Considering
the environment, proximity to important areas and amenities available in the
vicinity also affects the final decision.
Nothing can be more
profitable than purchasing a flat at a price much lower than the market rate.
One of the biggest benefits that resale flats provide is income tax benefit
after gaining possession.
A deduction of Rs. 1
lakh on the principal of EMI under 80 - C and a income tax exemption of not
more than Rs. 1.5 lakh of home loan interest under 24 B make the resale all the
more profitable.
Hence, if all the
other factors work in your favour, it might be a good idea to invest in a
resale flat.
Flat Price..!
New Flats Chennai Porur Rs. 5,800
Resale Flats - Chennai Porur- Rs. 4,600
Discount about Rs.
15%
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