To save cost and time many people buy a resale house or resale flat. The flat which is sold for the second time is known as a resale flat or resale property. As it is sold for the second time, a cost of this flat is lower compared to new flat. However, a cost of flat usually depends on multiple factors like area, an age of property, amenities, localities etc.
Well, if you are planning to buy a resale house or resale flat and looking for help, here are things you should consider before buying a resale house or resale flat.
10 Things to consider before buying resale flat house
White to Black Money Ratio –
The first thing you should consider while buying a resale house or flat is white to black money ratio. This ratio depends on a profession of the owner. If the owner is a businessman he will prefer more black money and reverse is the case if an owner is doing a job. This ratio will help you in knowing how much black and white money you need to arrange in order to arrange resale flat.
Cost of Registration –
The second important thing you should consider is the cost of registration or stamp duty. The cost of registration or stamp duty is an extra cost you need to pay to the government in order to transfer ownership or flat. This duty depends on the valuation of property.
Transfer Fees and other Charges –
You need to pay additional share transfer fees at the society while buying a resale flat. Apart from this, you need to pay advocate fees and brokerage fees to an agent. So, add all these costs while calculating entire cost of property.
Generally, people mortgage the property and take loans against it. You must check if any existing loan is pending against the property. If existing loan is continue ownership documents of property are kept with the bank. These documents are only handed over to the owner once an entire loan is paid. If a loan is closed you must ask for No Due certificate issued by the bank.
Age and Condition of a Flat
Age of a flat is important factor one should consider before buying. You should not buy a flat which is older than 10 years. Older flat give multiple problems related to maintenance. Apart from this, it will be difficult to get a home loan on old flat.
Extra Amenities and Cost
Before buying a resale flat you should consider extra amenities available with the flat. The owner might be charging extra money for the furniture and other amenities.
You should ask your advocate to check the relevant documents of flat carefully. Your document checklist should include following documents.
- Ownership document
- Title clearance
- Old Energy Bill payment
- Property Tax payment
- Approval plan
- BUC documents
This document check will help you to avoid legal problems and financial burden at later stage.
Valuation of Property
You should consult the expert for the valuation of the property. Valuation of property plays important role in deciding price of property. To get an idea you can also check price of new property in your area.
Another important thing you should consider before buying a resale house or flat is payment terms. Many owners ask for upfront payment. Under this condition, you should be in a position to make an early payment to the owner.
Area and Locality
Area and Locality is one of the prime things you should consider before buying property. Property in the posh area cost you more money and also gives you better appreciation at a later stage.
Over to You –
I hope points mention above will help you while buying a resale house or resale flat.
Did I miss any important point? If yes do share it in a comment section.