1. Infrastructure Issues :
Buying a pre-owned apartment/villa has certain costs involved. One might get ready to move into a living space but they also might face certain surprises like faulty structures or faulty electrical wirings or leakages in plumbing work or interior may not be of an individual’s choice and paint works too. Imagine the amount that one has to spend on renovation work. Buying a new apartment/villa from a trusted and credible developer has an advantage over all the above-said things. Individuals can do the interior of their choice at the start itself and there are no costs involved for structural maintenance in the initial days and comparatively fewer maintenance fees. They also get allocated covered parking space and various amenities like a gym, swimming pool, indoor sports area, clubhouse, library, park where children can enjoy their playtime, and association to take care of issues faced by owners within the gated community, etc.
2. Issues in Legal Due Diligence :
Good groundwork in due diligence is required if you are considering buying a resale property. There might be some legal liabilities like fraudulent paperwork or the original paperwork may not be present if the property has been mortgaged. The buyer also has to be aware of who they are purchasing from. You have to verify whether the individual is the legal owner and has the authority to sell the property. The buyer must also ensure that the property tax and water tax have been properly paid by the seller before making the purchase otherwise the buyer has to incur the cost. Ownership of the property has to be traced back at least a minimum of 20 years so that any legal implications involved can be identified. All these vetting processes for the resale property are tiresome whereas if you are buying a new flat/villa you are buying it from a company, not from an individual and the company should register their project under RERA to make a sale. RERA ensures that the project does not have any legal implications.
3. Hurdle in Bank Loan :
Checking documentation thoroughly is the most critical aspect of the purchase of a resale property if the buyer is applying for a home loan. Availing home loans to purchase resale property won’t be as easy as in the case of a new apartment/villa and insurance offered on a pre-owned house is lesser compared to new house. The down payment required for resale property might be more than 20 % if the age of the pre-owned property is higher. This will increase the financial burden for the buyer. There is also a chance that the bank might reduce the tenure of loan repayment due to age of the property. In case a new home bought from reputed builders doesn’t possess these disadvantages. One last thing to be considered is the brokerage amount that has to be paid by purchasers of pre-owned property and the credibility of the broker plays a major role in making authentic deals. Buying a brand new home doesn’t involve any brokerage fee and it’s safer for an individual to make a purchase from a builder/developer.
