Does it make sense to buy a resale house or a new one?  

Should you buy a property for resale or a brand-new house? This is a usual question for anyone who wants to invest in property. If you're in the market for a house this year, you will doubtlessly have wondered whether a resale flat will fulfill your needs just as well as a new one. Resale homes are usually more affordable than newly constructed ones. However, if the resale property is in a high-demand location, it could be of a higher price than resale properties in non-prominent areas. Akash Pharande, Managing Director, Pharande Spaces weighs the pros and cons of both kinds of property.

OLD HOMES 

Why should you buy
. A resale property is much cheaper as compared with a new house. The property is already built, and it is ready for you to move in – so you already know what to expect. For a property which has been built a while ago, the neighbourhood would already be well-established. Resale properties or those in the secondary market seem attractive especially when they are in ‘vanity locations’. 

Why should you not buy
. Old properties usually have depreciation value which is why they are available at low rates. Old houses do not have the facilities offered by new apartments. Parking your vehicle can be an issue. If the property is very old, securing a home loan could be a problem. In the same manner, buying or selling a property in a new project could also have similar pros and cons.

NEW HOMES 

Why you should buy
. A new house has special appeal and is likely to have all the modern amenities conducive to modern living. Car-parking, and charging-point for electric vehicles, are likely to be available at new properties. New properties are also likely to have proper garbage disposal and rainwater harnessing systems.

Why you should not buy
. If the project is under construction, there could be a considerable wait period until one gets the key. If the flats are bought only on the basis of its plan, one may not have any idea of future projects coming up alongside which could obstruct views.

In this comparison, the scale often tilts in favour of new properties as they get easy loans and builders often give discounts. As investments, new property offers the possibility of high returns on investments. As most people purchase homes as future investments and future financial security, new or under-construction property has more takers than property up for sale in the secondary market.