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Should you buy a new or a resale flat?

New Delhi: Should you buy a new flat or opt for one on the resale market? There appears to be no easy answer to this question. People buy resale flats instead of new ones for
India TV News Desk January 06, 2014 23:54 IST
India TV News Desk
New Delhi: Should you buy a new flat or opt for one on the resale market? There appears to be no easy answer to this question. People buy resale flats instead of new ones for various reasons.

Sometimes, a certain location just does not offer suitable options on the primary market. At other times, buyers do not do enough research and are unaware of the availability of very good options on the primary market. They succumb to the pressure tactics of a persistent real estate broker and buy a resale flat when a new one was available in an excellent location, and within their financial reach. Or they believe that a serviceable flat available at a slightly lower price is always a good bargain.

Most often, people buy resale flats because they are in a hurry and want immediate possession. This makes them unwilling to opt for a flat in a project which is under construction, even if completion and possession are only a few months in the future.

Because real estate is an eminently re-sellable asset, many people put perfectly acceptable flats on the market after a few years of use because they want to upgrade. This fact makes the market for resale flats almost as big as the primary market. However, this does not mean that resale flats and new apartments fall in the same value chain.

Assuming that a buyer is aware of all new projects as well as resale options in a given location and within a certain bduget, it is important to understand the benefits of opting for the former: