Buying a house at the ready-to-move –in stage seems enticing as it takes away the risk involved in investing in projects at the pre-launch or under-construction stage. But buyers need to check several aspects before parking money in such residential ventures also.
Purchasing resale flats could be advantageous for the new home buyer who wish to move immediately into his flat. Investing in such property options has always been a profitable from choosing a perfect location or looking for finer properties at better prices. The price appreciation of such houses are greater, if the owner chooses to redevelop the property. However, the property value appreciation depends upon several key factors such as city, locality, future prospects, civic infrastructure, connectivity and many others.
And second benefit of investing in such property options are – in most of the cases buyers plan to have such property by making full down payment from his savings rather getting into the hassle of availing a home loans.
Instead of waiting for a long time for the for the property prices to fall, a money conscious person go with the option that offers better solution. On the contrary, this proposition may sound but there are pitfalls too. Here are a few pointers that one should keep in mind when investing in resale property:
What are the documents you need to check before buying?
Sale Deed: Sale deed is the proof of sale and transfer of property ownership between buyer and seller. It is one of core legal documents that should be registered before the deal is closed. This document is also a proof of ‘sale agreement’ that ensures all the conditions between buyers and sellers has been met. Buyers should make it clear that whether seller has cleared pending bills such as electricity bill, property tax, maintenance charges etc.
Encumbrance Certificate: It is mandatory document used in property transactions as an evidence of free title/ownership. When buying resale flat it is important to verify that property does not have any monetary or legal issues.
Mother Deed: Mother deed helps in verifying the original ownership of the flat, in case the property has been sold to more than one time to different hands. It helps in knowing the ownership hierarchy and establishing the current ownership.
Occupancy Certificate: This certificate is given to builder after completion of project. This document is the evidence that project constructed by the builder has met all safety norms. Resale property buyers should ask seller to produce this document.
Possession Certificate: This is one of the important certificate issued by developer to the very first owner of the flat. However, this document is not generated again at the time resale, it is passed on to the successive owner.
Benefits of Buying Resale Flats:
The immediate passion, no waiting time
Document verification is easy as the property has already taken shape
Home Loan interest is low as compared to project at the early stage or under-construction
Clarity on final amount has to be paid to the seller
Tax benefits under 80 C
Good resale flat deals are not easily available. It you have to be very much vigilant to grab the opportunity.
Since, such property options are difficult to find; you cannot negotiate much while closing the deal
Buyers need to bear some extra expenses like transfer fees, registration fees, utility transfer fees and brokerage fees etc.
Buyers need to check whether previous owner has cleared all the legal dues or not