Many people to save cost and time buy a resale flat. The flat which is sold for the 2nd time is known as a resale flat or resale property. It is assumed that the cost of the second-hand home is lower in compare to new flat. However, a cost of flat typically hinges on many factors like area, an age of property, localities, amenities etc.
Well, for your simplification below are viewpoints mentioned which you must consider before buying a resale house or resale flat.
Things to study before buying resale flat house:
Ratio of White to Black Money required:
The very basic thing you should consider first at the time of buying a resale house or flat is white to black money ratio. It will depend on an occupation of the owner of the flat or house who is selling. In case, owner is a businessman he will more likely to ask for black money and an opposite is the case if an owner is doing a job. This exercise will help you in knowing how much black and white money you need to organize in order to get resale flat.
Registration Cost:
The second key thing you must study is the cost of registration or stamp duty. This is the extra cost you need to pay to the government in order to transfer ownership or flat. This duty solely depends on the valuation of property.
Transfer Fees and other Charges:
An additional share transfer fees at the society need to be paid at the time of buying a resale flat. With the same, you need to pay advocate fees and brokerage fees to an agent. Hence, you must add all these costs at the time of calculation of the entire cost of property.
Existing Loan:
Usually, many people mortgage its property and take loans against it. You must check if any current loan is pending against the property. In case there is any current loan then ownership documents of property are kept with the bank. These documents are only given to the owner after the entire loan is paid. In case the loan is closed you must ask for No Due certificate issued by the bank.
Extra Amenities and Cost:
You must consider the valuation of extra amenities available with the flat as it might be that owner is charging extra money for the furniture and other amenities.
Age and Condition of a Flat:
While buying a home you must consider the age of a flat. It is advisable to not buy a flat which is older than 10 years as older flat comes with many problems related to maintenance. Also, it is difficult to get a home loan on old flat.
Document Check:
You must ask your advocate to check the relevant documents of flat carefully and document checklist should include below documents:
- Document of Ownership
- Clearance of Title
- Previous Energy Bills payment
- Payment of Property Tax
- Approval plan
- Document of BUC
This exercise will help you to avoid legal problems and financial burden at a later stage.
Property Valuation:
You should refer the property expert for the valuation of the property as it plays an important role in deciding the price of property. To get an idea you must check the price of new property in your area.
Area and Locality:
Area and Locality is one of the prime things you must study before buying property. The Cost will be more if a property is in the posh area but it also gives you better appreciation at a later stage.
Payment Terms:
The other important thing you must study is payment terms as many owners ask for upfront payment. Under this condition, you should be in a position to make an early payment to the owner.
