When looking for property to purchase, you will usually see one of two tags attached to the property, resale or new. One isn’t necessarily better than the other, but it’s important to understand the distinction. A resale property is simply one that has already had a previous owner. Compared to buying a brand new property, or property that is currently under construction, buying resale property has the benefit of providing you with an investment that has already been in the market for some time. This can work to your advantage if you use this knowledge wisely. If you take the following tips into account when searching for a property to buy, you should have no problems at all in finding a successful investment property that fits your needs and wants.
Like any investment, price is a rather important point. Price can vary widely depending on a number of factors, such as location, current market trends, property type, and so on. Some people think that buying a resale property is a guaranteed way to find a more inexpensive investment, and in some cases this is true. But, according to Jones Lang LaSalle Blog, prices on resale property depends a lot on the availability of newly developed property and on the local market. Larger cities tend to have a dearth of new property, so the majority of property for sale is already resale, so a buyer is unlikely to find any sort of discount. However, if you search in a location with a more competitive market, you are much more likely to find sellers more willing to be flexible in their asking price and willingness to offer discounts.
Buying a resale property has a number of unique benefits that a new development cannot offer. One of those benefits is the potential for lower price. But as mentioned above, the chance for discounts and flexible pricing is dependent on a number of factors. A lower cost isn’t the only potential benefit, however. According to Yahoo India Finance, buying a ready-to-move-in flat or other resale property can give certain tax benefits with Enterprise Management Incentives. Resale property can also save you some money in avoiding some additional costs and risks that come with investing in under development property.
The Hindu Business Line states that an additional advantage of resale property is that the prices in some markets can start snowballing way beyond the means of the average investor, but older resale properties can avoid those dramatic price hikes and stay within a reasonable price range.
Documentation and Clearances
When on the hunt for a resale property to purchase, you need to be aware of the need for proper documentation and clearances. If you are planning on making a purchase with your existing personal funds, the Indian Express suggests hiring a lawyer to help guarantee that all the proper documentation is available an all necessary procedures are followed.
Regardless of whether you plan to make a purchase with your own funds or through a loan, it is absolutely critical that you make sure the seller has all the original documents about the property. This doesn’t just mean the deed, but also includes such documents as tax forms, zoning permits and clearances, registration papers, and bank clearances. There can be more documents needed, and to make sure everything necessary is available, doing research, talking to the bank, and going to the municipal land management department is highly recommended.
Pitfalls and Evaluations
Just like purchasing new or pre-launch property, resale purchases can have a number of pitfalls and potential obstacles. When you first find a resale property you are seriously thinking about buying, one of the first things you should do is to get an independent evaluation of the market value. Nirrtigo recommends an evaluation for two reasons. Firstly, so you know the finances can be planned and dealt with properly. And secondly, to find out whether the prices in the local market are liable to fall or rise. Getting loan clearance can be difficult if the local market looks like it might drop (and you should avoid that property if that looks to be the case as well).
A number of other potential pitfalls are connected to the need to make sure all proper documentation is provided. Yahoo India’s financial sector urges buyers to also make sure that the seller doesn’t have any outstanding loans against the property or other debts owed to local societies and the like. Some of those financial obligations can pass to you if you aren’t careful.
Getting a physical evaluation of the property is recommended as well. Since the property has been previously owned, and probably lived in, there is the potential for maintenance problems and repairs that need attention. You don’t want to buy a resale property then find out after that the ceiling has mold.
There are a lot of locations you can look for resale properties across India. A popular location that is rapidly growing is Gurgaon, among others. Unitech Group property in Gurgaon is a viable resource to use in your search.