For investors, reselling a home and purchasing real estate can be gold mining in and of itself. Buying a resale house can have significant drawbacks, depending on the rate of return.
Buying a new house is on everyone’s radar here in the real estate hub, but how do we understand that resale properties have had their own set of potential downsides?
Let’s look at the benefits and drawbacks of purchasing a resale home in India.
Advantages of buying a resale home
The first is a low down payment, which may help you save a lot of money on your monthly expenses. When compared to new property financing choices, lower interest rates make it more accessible for low-income customers.
Resale properties are a gift to individuals looking for a ready-to-move-in choice.
The resale market is brimming with great discounts and offers at deeply discounted costs that are affordable to most people. Resales range in price from Rs 30-40 lakhs and above now in affordable locations such as gurgaon, noida, and Delhi.
Depending on the area and facilities they provide, making them a perfect alternative for those with a limited budget or who want immediate cash flow advantages, among other things.
The best thing about buying a property on the resale market now, when the real estate market is slowing down, is that you can save a lot of money. “Many speculators who purchased numerous apartments while the market was on the rise are now unable to hang on to them.” Noida-based real estate consultancy, points out that such speculators are now eager to sell their properties at a discount. The larger the discount, the slower the market.
Disadvantages and Risks Involved
Certain drawbacks of buying a resale house in India, that a smart investor shall not overlook and should be well aware of.
Purchasing a resale property takes longer and is more difficult than purchasing a new house.
Due to a lack of market transparency, determining genuine value for a resale property is difficult, making it more difficult to negotiate transactions.
Because most resales are conducted through word-of-mouth or personal networks, the seller frequently does little or no promotion, making it difficult to learn about new listings. Which is because they are older properties, the previous owner may have hidden several flaws such as maintenance concerns and leaks in order to present them as a pristine property. As a result, always double-check everything before making a purchase.
In a secondhand market, the dangers connected with cash payments are also present. Assume the seller paid Rs 2,000 per sq. ft for the flat when it was first acquired, and the price has now risen to Rs 3,000 per sq. ft. He may request a cheque payment of Rs 2,100 per sq ft and cash payment of the remainder Rs 900 per sq ft.
Wrapping it up!!
With the current housing trends, there are a variety of alternatives available when purchasing a new home at the time of launch, including a simple payment plan and less hazards. If you acquire a resale property in a hurry while the real estate market is at an all-time high and you aren’t well-informed about the forthcoming appreciation, you risk increasing your real estate risks.
Choosing a home during a new development’s first launch might be a terrific alternative for first-time home purchasers and investors wanting to resell it following ownership.
Purchasing a secondhand home, on the other hand, comes with its own set of hazards. To minimise such a danger, it is critical to conduct thorough market research before investing your money.