Are Resale Properties Always cheaper ?

Q: I am planning to buy an apartment. But I think i will go for resale property. So I need some info regarding this resale property. Kindly share some information .

Ishika, Gurgaon

1st October 2014

Residential Project Review in Gurgaon

buying property

resale property

investing advice

buying property advice

legal advice

Follow Discussion

Also see discussions for

Gurgaon Residential Project Review Residential Project Review in Gurgaon

Replies (3)

Hi Guys,
I have a doubt. Suppose I have a flat and want to give it as rent. Then the question is "How is the market rent determined " ?

Jitendar, Gurgaon

1st October 2014

Comment

Hi Jitendar,

As per my knowledge, there is no prescribed norm for determining the market rent rate though it can be easily found out by approaching individuals such as brokers, registration authority, etc.

Bhawna, Gurgaon

1st October 2014

Hello Everyone,
I have a flat which i want to sell and buy a new flat bigger in area. what are my tax implications with regard to capital gains?

Arvind, Gurgaon

1st October 2014

Comment

Hi Arun,
As per my knowledge, If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.

Indranil, Gurgaon

1st October 2014

Hi Ishika,

Resale properties are not cheaper. In the larger cities, new residential property supply is scarce or non-existent in many central locations. In such areas, there would not be a question of discounts on resale properties. Discounts are more prevalent in areas where the market is more competitive. That said, resale properties are sold either by the primary owners or by investors. As such, there is a higher possibility of flexibility in payment terms.

Meenakshi, Gurgaon

1st October 2014

Comment

@Ishika,
There are certain challenges that a buyer of a resale flat may face. This could include lack of proper chain of documentation, especially in cases where the property has changed hands more than a couple of times in the past.

Seekha, Gurgaon

1st October 2014

Hi,

Yes seekha, you are right. If the property is over 18-20 years old, it is possible that it was never formally registered in the first place. Registering it at the current point in time would put the onus of paying the stamp duty in arrears on the buyer.

Vrinda, Gurgaon

1st October 2014

@Ishika

There may also be additional expenses for repairs to masonry, plumbing , electrical wiring and fittings. Obtaining a home loan for a property which is anywhere close to 50 years of age can also be a challenge.Finally, one should bear in mind that the Indian residential property market is in a constant state of evolution. One is unlikely to find the facilities and amenities that are available in the newer projects on the market in an older building.

Mahek, Gurgaon

1st October 2014