Why are resale flats cheap compared to new flats in same location?

Q: I have seen that resale and new flats both are being quoted at same price. Please explain.

Khushbu , Ghaziabad

9th May 2013

Investment Advice in Ghaziabad

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Replies (5)

The price difference is minimal between a resale property and a new property in same project which are close to completion. While in the initial stages of a project, the difference would be igh, but the risk involved is also high at this stage.

Kapil, Faridabad

9th June 2013

Comment

Guys, let me make one thing clear to u.. all properties are not having cheap rates in resale. You can see resale properties quoted at higher rates or equal rates as that of developers are quoting.

Suhail, Delhi-NCR

9th June 2013

Comment

The investors would have bought the property at discount during launch or pre-launch stage. So if a property was offered at Rs 3000 per sqft at this stage and an investor buys it. After an year, the rate for similar apartments as quoted by builder would be 6000, but the investor will be ready to even sell for 5000, because profit is guaranteed. In locations such as the Delhi-NCR, Mumbai and Bangalore, such properties are being sold at 5-20% less than the latest prices that developers are offering.

Neeraj Rao,

9th June 2013

Comment

But still, the property would have crossed at least two hands.. then it should increase the value of the property right? but why they are quoted at low rates?

Khushbu , Ghaziabad

9th May 2013

Comment

It is because Resale properties are generally bought by investors during the pre-launch phase with the intention of selling them for a profit. At this stage, they may have only made the down payment.

Sujan Mitra,

9th May 2013

Comment