Must Know Things While Buying a Resale Property
Mar 02, 2017 Home Trading Steps
We wish to own a property at a prime location in the city. For starters, living in a prime location has its own share of benefits such as availability of daily necessities, emergency services and easily accessible public transportation. However, you may notice that most of the prime slots in the cities across the country have already developed to the fullest of their potential and there are no supplies coming in. At such situations, buying a resale flat remains the only option in order to set up your home in a prime location. While you must have enough cash resources for buying a resale flat as procuring Home Loan for an old property isn’t that easy, the old property you are purchasing has the potential of becoming an excellent investment if it undergoes redevelopment in a few years time.
Resale Apartment: Is it cheaper than the new ones?
While it is logical to believe that the older things should be cheaper than their newer counterparts, this is not the case everywhere. We must understand the fact that most of the strategic places in the cities (with huge potential for commercialisation, residential complexes) have already been developed fully and one cannot simply expect more supplies in there. Resale residential properties in such places come with a hefty price tag due to lack of competitive market conditions and are mostly sold by primary owners or investors. Although it is true that resale properties in competitive markets will certainly offer discounts.
Let us discuss the overall documentation process of purchasing a resale residential apartment:
There is not much difference in the document requirements of purchasing a new property or the resale property. In both the cases, the seller should be able to produce all the original documents of the property. Documents such as sales deed and the society share certificate have significance while proceeding with the transaction. While buying a resale property, the buyer should ensure fair transfer and re-registration of the property. Moreover, the reseller must provide the buyer with a letter from the society which mentions various aspects such as the total floors in the building, year of construction, built up area etc. Various other documents such as Assessment bill from the municipal corporation, property card, registration fees payment receipt are also involved while the transaction is done. Also, the buyer must check the ownership history of the apartment he/she is wishing to purchase.
Key takeaways:
Buying a Resale property also comes with its fair share of challenges. For starters, you may not get any of the modern amenities and facilities in an apartment which is 10 to 15 years old. Other issues such as lack of documentation clarity, missing registration for too old apartments may also prove to be a hindrance if you are planning to apply for Home Loan. It is certain that the old property you wish to purchase will undergo redevelopment after a certain time span resulting in huge profits for you. But for time being you may have to incur huge maintenance costs on the old property purchased.
Resale Apartment: Is it cheaper than the new ones?
While it is logical to believe that the older things should be cheaper than their newer counterparts, this is not the case everywhere. We must understand the fact that most of the strategic places in the cities (with huge potential for commercialisation, residential complexes) have already been developed fully and one cannot simply expect more supplies in there. Resale residential properties in such places come with a hefty price tag due to lack of competitive market conditions and are mostly sold by primary owners or investors. Although it is true that resale properties in competitive markets will certainly offer discounts.
Let us discuss the overall documentation process of purchasing a resale residential apartment:
There is not much difference in the document requirements of purchasing a new property or the resale property. In both the cases, the seller should be able to produce all the original documents of the property. Documents such as sales deed and the society share certificate have significance while proceeding with the transaction. While buying a resale property, the buyer should ensure fair transfer and re-registration of the property. Moreover, the reseller must provide the buyer with a letter from the society which mentions various aspects such as the total floors in the building, year of construction, built up area etc. Various other documents such as Assessment bill from the municipal corporation, property card, registration fees payment receipt are also involved while the transaction is done. Also, the buyer must check the ownership history of the apartment he/she is wishing to purchase.
Key takeaways:
Buying a Resale property also comes with its fair share of challenges. For starters, you may not get any of the modern amenities and facilities in an apartment which is 10 to 15 years old. Other issues such as lack of documentation clarity, missing registration for too old apartments may also prove to be a hindrance if you are planning to apply for Home Loan. It is certain that the old property you wish to purchase will undergo redevelopment after a certain time span resulting in huge profits for you. But for time being you may have to incur huge maintenance costs on the old property purchased.
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