New project or used apartment?

Q: Hi, I am looking to invest in real estate. I am confused whether to invest in a new project or a previously owned apartment.

Aarav Sharma,

21st January 2016

Investment Advice in Mumbai

new project

old flat

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Replies (3)

Hi Aarav Sharma,

We are delighted to know about your interest in buying a property. Our property "Avezza"&"Eleve" is located at "Mulund" & "Bhandup". If you wish to know more about the project, please share your contact details so that our team can get in touch with you.

Regards,
Team Tata Housing

Amit Nanda, Mumbai

22nd January 2016

Comment

Hi Arav,
I will suggest you to buy a ready-to-move project or resale flats as it will be a safe one and you will not have to wait for the delay possession. As you know, in sluggish real estate markets most of the projects are getting delay due to financial crisis or delay in approval process. So, rest will depend on you.

khushisha, Mumbai

2nd February 2016

But a home buyers always like to buy a resale flats and has different view on the issue. They often prefer to buy resale flats as they guarantee possession of the property as there have been too many cases of long delay in deliveries or have been completely stopped.

Surinder,

21st January 2016

Comment

I am agree with Surinder,
Rather than waiting endlessly for the real estate prices to fall or falling in the sugar coated trap of the developers, a money conscious person looks for options that offer a good solution. The resale flats might be as good as new and can be obtained at a discount of no less than 10% of the price of a novel construction.

Supratim,

21st January 2016

@Supra,
At the same time, prices varies an depending upon a number of factors like city, locality, brand name of the construction company, age of the flat and many others.

Surinder,

21st January 2016

Apart from that there is some issue with the resale flats currently face are listed below: As resale flats are often sold by individuals, buying a resale flat often implies paying a 25% down payment on the house in form of cash. This percentage of payment is often higher than the initial percentage paid for new flats. And the amount not affordable by every single individual especially for those who are looking for home loan property.

Rakshit, Mumbai

21st January 2016

Thank you for sharing your views. I agree. There are pros and cons to either side. I am tempted to go for the resale flat since I am assured of the possession and less risk involved but as Rakshit rightly pointed out that the down payment is a lot higher in that case and I am not sure if making such a large financial commitment would be advisable right now.

Aarav Sharma,

22nd January 2016

Hi,
There appears to be no easy answer to this question. People prefer resale flats instead of new ones for various reasons. Sometimes, a certain location just does not offer suitable options on the primary market. property buyers who want to invest in flats do not do enough research and often lose out on good projects.

Supratim,

21st January 2016

Comment

Hi Supratim,
According to me, it might be a good idea for a person living in a rented flat to instead invest in a resale property. Buyers who buy resale properties generally pay lower amount, sometimes 10% lower than the cost of a new home. Buying a home at present is sometimes better than waiting endlessly for the prices to fall. Especially with the recent downturn the real estate market has experienced, this is a good time to invest in new or resale homes.

Rakshit, Mumbai

21st January 2016

As I mentioned earlier I am wary of putting down too large a sum of money at an early stage. I don't intend to wait on tender hooks for prices to fall and then be disappointed at a later stage if they don't.

Aarav Sharma,

22nd January 2016

As suggested I will be carrying out a lot of research before I make my decision. However, I wanted to know if it was advisable to do independent research and carry it out with the help of a broker?

Aarav Sharma,

22nd January 2016