buying a resale flat
 

Buying a resale flat? Are they the best? Check out this Checklist

02-Jun-2016
 

 Buying a resale flat has a lot of advantages and disadvantages. But considering the advantages, sometimes I feel we can forego some of the disadvantages and get a property on resale. For the seller, it is a resale and he will sell it to whoever pays him more. But as far as you are concerned, you are probably buying it for staying there. So you need to be cautious about the condition of the property. Generally, people resale flats or apartments that have completed construction and are at least 2 to 5 years old. Though there are advantages and disadvantages to this, you can use the advantages to your benefit and consider whether or not to buy it. Some of the major points to consider before buying a resale flat are:

Age of the Apartment or House

Though most of the apartment owners put their investment property for resale after 2 to 5 years of purchasing it, people who are selling their home may be doing it after 5 to 10 years. Ideally, if you can afford it, buy an apartment or house on resale within 2 to 5 years range. Never buy an apartment which is more than 10 years old. You may find it difficult to resell it after a few years. Moreover, after 7 to 8 years, the wear and tear will start showing up and a lot of maintenance will be required.

buying a resale flat checklist - age of the apartment or house

Verify the Construction

As far as a resale property is concerned, the construction would be over and mostly it will be a used apartment. So you know what you are investing in. This is a big advantage when you consider the risks associated with just-launched or half-built fresh properties you would normally invest on. You can see the construction and make sure it is good quality and appeal to your interests. In case you are looking for an individual house, it will be better to get a civil engineer to check on the construction quality.

Buying a resale flat checklist - verifying the construction

 

Builder's Reputation

Builder’s reputation matters since it will affect the resale value when you plan to sell it. Moreover, reputed builders will ensure a minimum standard of construction which will keep the house or apartment good for living at least for 10 to 15 years.

buying a resale flat checklist - builders reputation

 

Check the Association Rules

Check the rules and regulations of the Association in the case of apartments and gated villas. If you will not be able to cope up with those, there’s no point going further. Some associations have ‘No Pets’ rule and some others have a ‘No Smoking’ rule! So ask for a copy of the association’s rules and regulations before committing the buy.

Know your Neighbours

If you are planning to buy an apartment, check with a couple of neighbours on the association, maintenance, and the neighbourhood. Look around the premises and check whether the exteriors look good and are well maintained. Check for the amenities and facilities as you are paying for that too. Try to have a casual talk with a couple of neighbours to know whether they are like-minded people and whether the building is well maintained. Skip it if you are not ok with both.

Buying a resale flat checklist - know your neighbours

 

Verify the legality of Title Documents

Get a copy of the title documents and verify them with a lawyer. Getting an expert legal opinion is a must when investing a huge amount. If you plan to buy it on a bank loan, the bank will verify it with a couple of legal advisors in their panel. Check whether the property is kept on lien somewhere or else you will have to take the additional liability.

Eligibility of property for Loan 

If you plan to take a house loan to buy the property, make sure the property is eligible for a loan. You can take copies of the property documents and ask the bank to verify its eligibility. Properties built by reputed builders would normally be eligible for bank loans. That’s another advantage of brands!

Buying a resale flat checklist - Eligibility of the property for loan

 

Check if the owner owes any dues to the Association before buying a resale flat

This is important or else, you will have to pay up for someone else! You can also ask for copies of last paid electricity, maintenance, water bills etc. and verify them for dues.

Compare the cost

Compare the cost of buying a resale flat against that of a new apartment in the locality. If you can buy a new apartment for another 5 lakhs more, it will be better to go for a new apartment. Property value will not appreciate much after its first resale, whereas for a brand new apartment or house, the resale value will enhance a lot depending on the location and brand.

Buying a resale flat checklist - comparing the cost of houses

 

Furnished Apartments

Used furniture and equipment do not have much value at all. Consider the quality of the furniture and fixtures like the doors, windows, grills, cabinets, sanitary ware etc. These need to be of good quality or else you may regret the buy sooner than later.

buying a resale flat checklist - furnished resale flats or not

 

Consider the stamp duty, registration charges and cost of other formalities.

Registration charges for a completed apartment will be much higher than that of an under-construction building. So be prepared to bear the higher costs. You can check with local agents on the rates for registration, stamp duty, and the associated formalities.

Conclusion 

At the end of the day ,you need to think long term while buying a resale flat or a villa and if you somehow find a new apartment which cost slightly higher than the resale apartment then do check it out first before going for a second-hand apartment.

So start your research by checking out the brand new apartment offerings in your locality  or else you can check out Victoria Realtors affordable apartments or villas  at Palakkad

If the above points proved helpful in your apartment research process, then do share your suggestions and opinions in our comment section below.

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