Buying a resale property is also a better choice rather than buying a new construction property as the buyer can get immediate possession of the property after the down-payment and also be able to close the deal at lower prices. The buyer can negotiate in a better way in case of the property purchase, which buying a resale one. The home loans are also available easily for the property purchase in case of resale property purchase. The loans are available at similar interest rates as the loans taken for the resale property. The home loans currently start at 6.5% per annum, going on a higher side as high as 18% per annum. The bank approves a maximum of 80% of the property value as loans, while the remaining needs to be paid as down-payment. The bank disburses the loans at a time in one go while in case of resale property purchase. The bank charges a penalty in case of a delay in payment of installments. Thus timely payment of the loans installments is necessary. In the case of the purchase of the resale property, the buyer may sometimes have to invest more heavily in interiors, which can be an additional cost to the buyer if the condition of the flat is not good. In the case of home loans, the bank only provides loans on the property value.
The resale properties are readily available, and the waiting time is very low. After the completion of the transaction, the buyer can expect to get the possession at the most after one month of the transaction date. Thus the property buyer can save on rent in case of the existing property being a rented one. The loan installments start on an immediate basis once the bank is disbursing the loan. There is no grace period being given by the bank to the borrower. The tenure of the loans for a resale property depends upon the age of the borrower. The bank at the most provides loans for 30 years. Also, the bank charges processing fees for the loans, which is 0.25%-1% of the loan value, or else Rs.10,000, whichever is lower. The resale property can be searched through an estate agent or even through the online property portals wherein the sellers post their advertisements online for the sale of the property. It is always advisable to connect online between buyer and seller rather than going through the agent. Direct transaction between seller & buyer can help both the persons save on agent commission.
Things to consider while buying a resale property:
- Loans approval on the property:
The property should be available with a clear title and should not be in a dilapidated state. Only then the bank approves home loans for the resale property. Also, the property must not be disputed in case of ownership of the multiple owners. If everything is all right, then only the bank approves loans for the property.
- Identify the right price of the property:
The property should be identified with the correct price as per the prevailing rates in the market. The buyer should inquire with the property agent or check for the rates & trends online on the property portals to identify the right price for the property. Also, the price of the property may vary as per the condition of the building, amenities, whether available or not, and also as per the condition of the flat from inside. A renovated property fetches better value than a flat in poor condition. The buyers should be cautious about the purchase of the property as the sellers may tend to expect a far higher value than the actual prevailing rates in the locality, which can lead to the buyers ending up spending more money for the property. Thus identifying the right value and accordingly negotiating with the property owner is necessary.
- Age-old construction:
The age of the building should ideally be older than 5-10 years. While as in the case of the building, 30 years or older can go for a redevelopment in which the buyer can soon expect the new project and surge in pricing due to redevelopment. The owner can expect a higher area in redevelopment due to increased FSI. But for the people who are not interested in redevelopment should ideally purchase a property of less age-old construction.
- Surrounding around the building and the neighbors:
The surrounding should be cleaner, and safer should be considered while buying the property. There could be some people’s miscreants or the misbehaving ones staying in the surrounding of the building, which can affect the mental peace of the residents. Thus to avoid this background of the people staying nearby should be verified. There could also be alcoholic miscreants or people from criminal backgrounds been staying in the surrounding, which can lead to uneasiness for the descent families to stay there.
- Faulty design of the building:
In the case of the age-old building, there wasn’t any proper architecture plan been made long years back, due to which there could not be proper ventilation or else no proper planning for sunlight. Thus the faulty design of one’s building may not be cheerful for the residents to stay. Thus the flats with faulty designs should be avoided.
Careful observation while buying a flat is necessary. Buying the wrong kind of property can later lead to further problems; thus, with the 360-degree perspective, the property should be checked, and accordingly, the deal should be made. Also, paying the right price for the property is important as the sellers may over-exaggerate the value of the property. Thus proper negotiation is necessary.