How can you make a successful purchase of resale property? Do you purchase resale property as an option of investment? These tips will help you invest/ purchase wisely on resale property.
Useful Tips for Resale Property Purchase
Your decision to purchase resale property must be supported by your purpose of purchase. Your purchasing purpose is of greater priority and importance.
Probably when you consider purchasing a property to settle down, then you have to consider the proximity to office site, close educational institutions needed for your children’s education, and so on. The area’s growth is not as mattered highly as your convenience is.
If you are purchasing resale property as an investment option, then you have to look at the area’s possibility for development. In case of investment you should necessarily go for resale properties in developing locations. If you see that the area is developing, you can surely sign the agreement.
Location is Important in case of Investment
Prior to the purchase of a resale property you should gain a clear knowledge about the locational features of the area. You can be sure of reselling the property if the resale property lies on a prominent location. On the other hand, if the resale property is not in a prominent location then reselling also will be troublesome.
Whenever you decide to purchase a resale property as an investment option you have to follow some certain criteria. Location of the resale property is to be given prior concern. Normally a location which has no supply or low supply is more preferable. This is because such areas, for example Mumbai or New Delhi, will normally have higher demands and you are sure to invest in your property wisely.
If one owns enough money to purchase a resale property which is as old as nearly 20 years or more, then it will be a good investment. But if one has to depend on the bank loans for the purchase then it won’t be as profitable as it should be. Moreover the bank loans may not be so offered in cases of purchasing very old resale property. The wise investor is to gain profit when the project comes for redevelopment.
But this is not the end of your purchase. You have to further take care of the following hints as well.
Rely on Clear Documents & proper procedures
All necessary documents which are a must for purchase or sale of a resale property must be produced by the seller. The buyer has to make sure that the resale property has all the required documents.
In case if the documents do not permit resale transaction in any way or the seller fail to produce any such documents then it is wise to keep away from such resale property purchases. Before signing on the agreement you must ask for all the documents required.
Any kind of property transaction cannot proceed without original sales deed. Moreover the buyer should clear out the belongingness of the resale property to some proper society. To prove belongingness, the Society share certificate has to be produced by the seller.
Similarly, the buyer must keep in mind that whether re-registration is necessary or not in case of resale property.
Remember besides the sale deed, necessary documents include a letter from the society which contains details like the number of floors, year of construction, the total built-up area of the apartment and even the number of lifts in the project or the building.
Besides the above documents some government approvals and documents are also to be considered. These documents include an assessment bill from the municipality to the society, Collector’s NOC certificate and a payment receipt of registration.
Advisably the buyer should get clarification on ownership history if the property has changed hands ever before. According to the government laws the local registrar will examine the authenticity of these documents.
Are Resale Properties Always Cheaper?
It might be wrong to consider the resale property as cheap. The resale property does not necessarily be always cheap especially in great cities as there is no new supply or very low supply. The buyer can’t expect any discount even in such cities.
The buyer will get discounts in highly competitive markets. In competitive markets the resale property is normally sold by the investors or the first hand owners directly.
Challenges
The buyer of a resale property may have to face some challenges. This is severe in cases where the resale property has changed hands several times. Such cases the seller will not be able to produce all documents or even the produced documents may lack continuity.
Re-registration expenses and other extra maintenance expenses are also challenges the buyer has to face in the purchase of resale property. Difficulty in acquiring home loans for older properties is more troublesome. Finally the facilities and amenities available at a property will not be up to date and modern.