Buying a dream home is one of the most important decisions of any individual’s life. A Homebuyer has to undergo lots of procedures like transactions, financial know-how, borrowing loan, and other important buying decisions. However, one of the most crucial buying decisions hovers around whether to purchase a fresh property or a resale one, which often confuses a buyer.
Read this blog to get inside details of both the property types their benefits as well as cons:
Fresh Residential Property
A fresh property is basically that residential unit which is new and no one has acquired it before. It can be in a new project or in an older project which is never purchased. Most of the under-construction properties come under the category of Fresh residential units, development of which takes place in front of the buyer’s eyes.
Advantages of Buying Fresh Property
Better Quality: Buying a fresh property means investing in a brand new product that has been developed with the best of the construction techniques and materials. A fresh unit has a longer life expectancy as compared to the older one.
Affordability: These days with a focus on affordable homes, most of the fresh units are catogerised under the affordable housing scheme. So, a home buyer can avail the benefits of PMAY scheme, wherein they can get a good quality in their budget.
Offers and Schemes: When you purchase a fresh property, you can avail many offers and schemes provided by the developers. These days to attract prospective homebuyers many realty firms offer discounts in price or freebies or sometimes free registry too. Due to this, a fresh property can become yours by paying less.
Financial Benefits: Home loans are easily available on the fresh property as compared to resale one. In the case of under-construction property, the loan EMIs start around 6-12 months later, which is not in the case of a resale property. You can also get the benefit in paying just down payments before and rest of the money over 2-3 years.
Customisation: One of the major benefits of a fresh property is that you can customize it accordingly. You have the choice to select design layout, size, configuration, fittings, fixtures and much more. This is not possible in case of a resale property.
A resale property is that residential unit which has already been used before by one or multiple users. They are mainly catogerised under the secondary market and are not fresh in design and architecture.
Advantages of Buying Resale Property
Ready for Possession: As the property is already developed and was in use, so you can instantly shift in the house after purchasing it. Unlike Fresh properties, where you have wait for possession, you can immediately set up newly-purchased property.
You get what you see: Yes, that’s true, in case of a resale property; you are purchasing an already developed property. Here, the size, configuration, and layout remain the same which is not possible in case of under-construction property wherein the developer can change the design and layout or even the amenities at the last moment.
No delays: Today, there are lots of under-construction inventories in the market. This is due to the liquidity crisis which the builders or the developers are facing. However, in case of resale property, you can save yourself from falling in the trap of any delay.
Source of Income: A resale property acts as a source of a second income to many. For instance, you are purchasing a resale property to earn rental income. In that case, you can immediately rent it out as the property is ready to move.
Benefits in Pricing: Sometimes an owner has to sell their house quickly to fulfill their financial needs at lower prices. In that case, you can get a quality house at a good location at a budget price.
Benefits in Tax: While purchasing a resale property, an individual can avail tax benefits on the home loan quickly which is not possible in case of under-construction properties.
Location Benefits: With space crunch in urban areas, most of the developers are moving towards the outskirts of the city to develop a new property. However, in case of resale property, you can get to own your dream home in the city center and some time at prime locations.
Fresh vs. Resale: The Final Take
While both resale and fresh residential units have their benefits, the cons also come at the same time. While a fresh unit takes time to become your dream home, a resale property most of the time are not available at affordable rates. However, the last choice is yours. Undergo proper market research, list your objectives and financial needs and then take a final decision. After all, it’s about your dream home.
Also Read : Benefits of Investing in a Duplex Apartment