Primary Versus Resale Homes: What Should You Buy?
With new buildings mushrooming everywhere, there is a huge demand for new flats. And yet, most people opt for a resale home. However, taking a call on whether to invest in a new flat or a resale one may be difficult.
Typically, new or primary homes are the ones which are acquired directly from developers, and a resale or secondary homes are the properties that have had a previous owner.
Below are the key factors that may help you take an informed decision:
- Affordability is the most important factor while buying a home. Most of the property seekers want to buy a resale flat in anticipation of paying a lesser amount. However, there are various other costs associated with resale (registration fee, transfer fee, stamp charges, utility charges, etc.). Moreover, resale flats may require repair and maintenance.
Also, primary homes that are constructed in upcoming locations or suburbs will cost you lesser when compared to resale homes in established localities of a city.
- When you invest in a new property, you have an option under which you have to pay only 20-30 per cent of the total amount upfront. You get ample time to pay the remaining amount over three to four years while the construction is on. Developers of a new property in India also come up with several attractive payment schemes and discounted offers to choose from, making this a feasible option for home buyers.
- A brand new home comes with newer fixtures and fittings which can guarantee problem-free performance for a longer period, while older fittings are a common issue in resale flats. Also, new projects by reputed developers are more space-optimised, energy-efficient and are equipped with all modern facilities.
- While buying a primary house, you have a plenty of options to choose from, ranging from number of bedrooms, size of the flat, floor and fittings plans to view of the flat, etc. In a resale flat, these options may not be available.
- The process involved in buying a resale property is a long one which includes a background check of the seller, title check and verification of documents, closure of home loan by seller, registration of property in authority etc. When you buy a new home, your developer takes care of the whole process.
- People opt for resale flats because some of them are in a haste and want immediate possession. While buying a resale home, you can evade the risk that the project may get delayed or not completed at all. An early possession also helps you avoid paying rent and EMI at the same time.
- If you want to possess a home in a well-developed area, buying a resale home is the best option, as purchasing a new flat there may not be affordable.