When it comes to buying a home, financing inadvertently plays a critical role. Should you opt for a home loan to buy that exquisite piece, or should you be content with the regular-looking place that costs half the price? Should you opt for resale properties instead of buying new real estate projects? Should you go for one closer to your office or the one that provides more amenities but at the expense of being at a considerable distance from your office? All these can have homebuyers confused. So, we thought of clearing the air about the fight between new and resale properties to start.
This article is dedicated to helping you pick the right choice between new and resale property for your family.
Advantages of opting for new property
- Choice is the most significant advantage of looking for new properties. Given that India is a booming market for real estate, there are a plethora of new projects announced every day to ensure you get to choose the one that suffices with all your requirements.
- New homes come with the latest fixtures and fittings, ensuring better performance and hassle-free maintenance for the next few years.
- In addition, new houses use the latest technologies, ensuring they offer superior technical aspects and a holistic and user-friendly approach that keeps in mind space optimization. RERA clauses also apply to new properties, which entails that developers must fix any structural defects that surface within five years of submitting possession.
- Homebuyers are also likely to get home loan quickly for new properties. Lenders find a new property more dependable while approving your home loan application, and you know the reasons.
Advantages of opting for resale properties
- A new flat in Mumbai Kurla West would set you back by up to INR 17,000 per square foot. In comparison, a resale flat is likely to cost you up to INR 15,000 per square foot in the same locality.
- The most significant benefit of resale houses is affordability. If you are taking a home loan, running a Home Loan EMI Calculator would inform you of the monthly EMI outflow you would save. In addition, the government also offers tax benefits on the EMIs provided you take immediate possession.
- With resale properties, there are no hyped or honey-dipped features that you discover to be mere gimmicks within days of taking possession. Instead, you get what you see!
- Also, it is easier to verify legal titles and any legal issues associated with resale properties.
- The last benefit, while not tangible for some, is the neighbours. Unlike in new properties, you already know people going to live around you and what to expect from them when it is a resale flat. Mental peace is invaluable, and you get a better chance at securing that with a resale property.
Home loan options
As mentioned above, home buyers find it easier to avail of home loans for new properties. However, while it is not impossible for resale flats, lenders show a greater degree of reluctance while offering to finance for resale properties.
What should you choose?
Resale properties come with a set of restrictions, which means that potential buyers are unlikely to find places that satisfy all their requirements. Given that most of us buy homes with a long-term perspective in mind, it can be a significant letdown.
But with new homes, you are never sure of the structural strength of the property and how it will hold up after years. In addition, there are several honey-dipped features that brokers use to woo buyers, which require careful due diligence to unearth.
So the choice ultimately depends on what you are looking to achieve and if you are willing to make a few sacrifices. If not, a new house is always a work-in-progress on the other side of the lane.