Buying a house can be one of the most important decisions of your life. In addition to making you feel independent, home ownership has a lot of sentimental value attached to it. However, it can be a financially wise decision to not jump into buying a new house in the beginning of your career, rather browse through secondary or resale and rental market.
Owning a house is a great deal in a country like ours. However, buying a house might not always be a good option. Suppose you’re someone who is starting with their career. Having mammoth monthly EMIs would be the last thing that you’d want for yourself.
Even if you find a property where EMIs are roughly equal to your monthly rent, the location won’t be as good as the rented flat. Moreover, you don’t know if you’ll be staying in the same city, ten years down the line.
So, for people who are just starting with their career or looking to build wealth, it is a better option to avoid buying a house. There are great flats with many facilities, and in prime locations, available on rent.
Find a real estate vendor like Ashiana Housing. Our in-house Resale and Rental team connects you as a potential tenant, directly to house owners to establish a seamless communication. Moreover, we also look after the necessary paperwork. Hence, the whole process of renting a house with Ashiana Housing becomes more streamlined and hassle-free.
Buying a house is a important decision and quite often, an emotional one. Practically, you might not need a house or you might have less budget than you’re spending. Since owning a house in India is a big deal for many of us, it is important that we keep our sentiments aside and approach this decision pragmatically.
Other options to buying a property can be looking at its alternatives – renting a house, or buying a house in the Resale market.
Simply put, resale market is buying and selling of pre-owned homes or properties. Resale houses are basically all the houses that are not new, and have been lived in. Buying resale houses can be a great decision for you in terms of budget and location.
Many locations are saturated and hardly any new houses can be found there, however, resale houses can be found in such locations. Moreover, even flats and apartments are re-sold, it’s not just that standalone houses.
Thus if you’re thinking that you can’t enjoy the benefits of community living in housing socieites, you can. Some real estate vendors like Ashiana itself, facilitate reselling of houses. Our in-house Resale and Rental team, helps you, both as an owner and as a buyer to resell/buy properties. We connect owners and potential buyers and also help with the paperwork. Thus, making the whole transaction transparent and easy.
Like everything else, Resale houses come with their own advantages and disadvntaged, let us take a look at them.
A major advantage of resale houses is that they are more affordable than new or under-construction houses. The older the house is, the cheaper it gets. You can get a cheaper property in a prime location when buying a resale property.
Prime locations of any city are often saturated and hardly any new construction takes place there. If you’re someone who wishes to settle in a particular prime location then resale houses are the best option for you.
Since Resale Houses are pre-owned, they come attached with various amenities and/or furnitures as well. You may or may not get these amenities in an under-construction house. In case of resale houses, facilities like power backup, water supply, gas connection, etc. are generally pre-installed.
In case you are living in a rented flat and have booked a house, you are paying double every month – the rent as well as the EMI for your new house. This is easily avoided in case of Resale Houses. You just have to pay the remaining EMIs, which are usually lesser, considering the down payment.
When moving to a Resale House, you can start getting tax benefits on EMIs from the first month itself. Under section 80C of the Income Tax Act, you can avail upto Rs. 1 Lakh tax exemption on principal EMI. In case of resale houses, you can get a tax deduction of Rs. 5 Lakhs under section 24B of the Income Tax Act.
Affordability does increase for homes that are older, but then, they require more repairs and their life might be less.
In case of many Resale Houses, you might have to get your house renovated after buying. This leads to an extra expense.
If not well researched before buying, resale houses can have unpaid dues, and as the new owner, you’ll have to clear them.
There is little liberty for personalization in resale houses. If you’re someone who wants to give their house a personal touch, resale houses might not be right for you!
In housing loans for resale houses, you are required to pay 20% of the amount as down payment, which is much more than in case of new homes.
Although owning a house has become a big deal today, yet many people look towards renting flats for achieving their financial goals. The Resale and Rental market is booming due to the same. Among the people who wish to become home owners, budget and location are important parameters. Resale houses fit easily in budget as well as are mostly in prime locations – thus solving the problems of potential buyers.
Resale houses do have some disadvantages but most of them are taken care of when buying from a credible source. Ashiana Housing’s Resale and Rental team guarantees just that! We not only connect sellers with buyers, but also verify the conditions of the property.
The trend of Resale and Rental properties is here to stay and with people becoming more financially literate, this trend is only expected to grow in future.
Ashiana, Ashiana Housing build homes. Homes surrounded by vast green spaces and fresh breeze. Homes cocooned in secured gated complexes. Homes where futures are forged and there are opportunities to grow. And Homes in environments brimming with healthy activity, trust and respect. At heart, we build communities with care.
Other posts by Ashiana
Join 1000+ of fellow readers. Get expert real estate knowledge straight to your inbox absolutely free. Just enter your email address below.