New home vs. resale home: Which is right for you?

 

Whether to buy a new flat or a resale apartment should ultimately depend on your budget, priorities, and construction quality.

"I bought a resale one room kitchen home back in 2016 in Borivali, Mumbai for around Rs 55.5 lakh (including stamp duty, registration fee, and other overhead charges). The house was well-maintained, so I only had to do a few minor repairs and change the paint of the house. I wanted to invest in real estate, but couldn't find a home that fits my budget in any of the newly constructed buildings. Hence, I purchased a resale home. Now, in a few years, this building shall be redeveloped, and I will get a new, bigger home

"Buying a new home in an under construction project gives you time to accumulate money and make the payment accordingly. Other than that, a brand new home comes with several modern amenities, especially if one invests in gated communities/complex-style projects."

So, if you are looking to buy a home but unsure whether you should buy a new home or a resale property, then read on as we analyse the pros and cons of each option, to help you get clarity.

In the case of brand new home...

Cyrus Mody, founder and managing partner at a real estate company shares the advantages associated with buying a brand new home:

a. Adherence to building norms: Other than the fact that the home is brand new, newer constructions also adhere to the latest building norms, codes, and standards, which can provide greater energy efficiency and safety;

b. Customisation options: If buying an under-construction home, you can request the developer to customise your home (generally, at an additional charge);

c. Lifestyle amenities: A new project is likely to offer a variety of r well-planned indoor and outdoor lifestyle amenities such as playground, swimming pool, sports court, gym, mini theatre, banquet hall, business centre, etc. In addition to that, these homes may also offer high-end safety and security features such as smart home automation, energy-efficient appliances, and modern fixtures.

Disadvantages of buying a new home:

a. In the case of under-construction projects, buyers cannot move in immediately. Also, the buyer would have to complete the interior decor work before moving in, this can delay the move. If the builder is not providing a furnished home, you may have to factor in this expense as well. As per the prevalent benchmarks, fit-out cost for a residential unit can range from Rs 1,200-2,000 per sq. ft.;

b. Upkeep and maintenance of the society or the building premises can- not be ascertained;

c.  It is not possible to check in case of any issues such as seepage or leakage within the unit.

In the case of resale flat...

“The key advantage of purchasing a home from the secondary market is that you can get possession of the flat immediately.  Also, the seller is more than willing to negotiate on the price tag”.

“A buyer can ascertain the society premises, its upkeep and maintenance.  Also, any underlying issues pertaining to the development or the unit can be ascertained”.

“Resale homes are often located in established neighbourhoods with mature-trees, established infrastructure, and surrounded by amenities such as schools, shopping centres and transportation.  This can be a great advantage for buyers as it enables convenience.  It is also crucial to buy a home at a specific location.  The outgoing costs (such as society maintenance) are also lower as compared to the newly constructed homes.

Drawback of buying a resale home

a.       Dated home models:  Resale homes may have outdated home layouts.  They also come with old appliances, outdated electrical and plumbing systems, or old heating and cooling systems.  This can be costly to update and may not be energy efficient;

b.      Maintenance costs:    Resale homes may require more maintenance and repairs than the new homes due to the wear and tear.  This can add up to substantial costs over time and maybe unexpected.