Why is there a rush for resale property?

In this era of boom in the real estate market, property prices are skyrocketing. In such a situation, if you are buying a house, then there can be a lot of difficulty in finding a new home. Maybe the property location is good but the price is higher or the location is bad but price is within udget. the of the one which is within the budget may not be correct. Essential things like roads, electricity-water, public transport security should be out of reach. In such a situation, resale property can be a good option for you.

What is resale property?

Resale property can be called old property in simple words. Means such a house or house which was bought by a person from the builder or built by himself and now he is selling it to you. Many people prefer to buy a resale property as they want to shift into the house immediately so that they do not have to pay EMI and rent simultaneously. It usually takes 3 to 4 years to get a house in an under-construction project. There are lakhs of such cases, where people’s house gets stuck for years. Resale property takes away these worries.

What does the Anarock report say?

According to a report by property consultant Anarock, by the end of May 2022, about 4 lakh 80 thousand houses are stuck in different stages of construction in seven major cities of the country.  These are worth about 4 lakh 48 thousand crore rupees. These housing projects are from the year 2014 or earlier.

The National Capital Region and Mumbai Metropolitan Region have the highest share of 77 per cent. Out of this 2.4 lakh houses are in NCR and 1.28 lakh in Mumbai Metropolitan Region.

PropTiger.com report

Apart from the desire to move in immediately and avoid delayed delivery, low prices and good locations are also fuelling the market for resale properties. According to the report of PropTiger.com, in 2022, an average increase of 7% has been recorded in the prices of houses in 8 major cities of the country. Compared to 2021, the price has increased to Rs 6,700-6,900 per square foot in the year 2022. Home prices have increased the most in Gurugram by 13 per cent. Here the prices have reached Rs 7,000-7,200 per square foot. One reason for this is the increase in construction costs such as building materials and labour.

Check before you buy

Resale property can give you relief in this era of inflation. Compared to the new flat, the old flat at the same location is cheaper by 15 to 30 percent. As the property gets old, its value decreases in comparison to the new one. In such a situation, you can get a good deal for less money, but before buying such a property, some research is needed.

First of all find out the age of the resale property. For this, the help of a structural engineer can be taken. He will tell you how much strength is left in the house, otherwise you may have to spend heavily in renovation. Check the registry or title deed of the house so that its owner can be known correctly. If you are buying a flat in a society, then check that there are no dues of maintenance charges, electricity bills or any other kind. There is no loan or legal encumbrance on the property. Avoid buying unregistered flats as most banks and NBFCs do not finance it and even if they do, the interest rate is very high.