Buying a home and getting out of the renting rut is every Indian’s dream, but for today’s working professionals it’s about lot more than purchasing a bare shell and making it livable. There are three reasons why many young working couples and individuals prefer to scout the resale market rather than buying new properties.
- Lower ‘set-up’ time investment
- They are looking for ‘plug-and-play’ options to the maximum extent possible – in other words, homes which have already been rendered livable by their previous owners in terms of furnishings and fittings.
- New fully-furnished properties are too expensive and are in any case, rarely as functional as such buyers want them to be.
- In a furnished resale flat, a few key changes to decor are often enough.
- Time and capital are both at a premium for professionally active buyers, and they simply cannot waste either on setting up a new household from scratch.
Downsides
- Older properties tend to have lower-grade amenities and facilities, and technological advancements in home automation and security may not have caught up.
- Previous owners leave an indelible stamp of their own ‘personalities’ on their homes. Making such a home entirely your own is often challenging – and if one factors in extensive redecoration, expensive.
- Better pricing
- You get better locations when you opt for resale properties.
- New housing projects that meet budgets usually happen in newly emerging areas, as more happening locations are either already fully developed or new housing projects there are hyper-expensive.
- Buying a resale flat allows young working couples or individuals to buy into a well-connected location at a cost which doesn’t break the bank.
Downsides
- For any Indian, an important motivation of buying a residential property is the investment objective – they want their properties to appreciate over time.
- Buildings age and appreciation potential of a resale property is already lower than a newly-purchased one. If one buys such a property and eventually puts it on the market again, it has already changed hands twice and the building has aged that much more.
- Hence, older flats are not the best bet unless the location is a highly-prized one (in which case buying into it is in any case beyond the budget of most up-and-coming professionals).
3. No white-knuckle waiting
- An inherent potential horror of buying a new property today, assuming it is an under-construction project, is delayed possession and even stalling of the project.
- Doling out rent as well as EMIs every month is nobody’s idea of a good time.
- When you take the ultimate financial plunge of buying a home, you want ALL the benefits of home ownership – including freedom from rent.
Downsides
- Given the risks involved in investing in yet-to-be-delivered projects today, there is no downside to being able to move into your home right away. Period.
Resale homes may provide more opportunities for home improvements. Buyers most likely can purchase a larger home for the same money with a resale than with new construction. Buyers often have more room for negotiating the price or terms of sale than with new homes.