Buying a property is an important decision in one’s life. Therefore, which property to buy is a confusing arena for buyers, especially when it comes to fresh bookings or resale properties. Since it will be a significant investment, you should know that the type of property you should buy has a lot to do with your needs and preferences. However, in order to make a wise decision, you should know everything associated with both fresh booking and resale properties. In this article, we will delve into the advantages and disadvantages of both so that you can analyse what’s best for you.
See also: Key legal checklist for buying a property
What are fresh booking properties?
Fresh booking properties are the new projects that are open for bookings. These properties offer the latest amenities and designs. These properties are newly constructed or under construction and offered to first-hand buyers.
Advantages of fresh booking properties
Flexible payment
Fresh booking properties, especially the ones under construction, provide customised payment plans. This can also be a construction-linked plan, which makes it easier for you to manage payments.
New property
These properties are completely new, and therefore, you will not have to worry about major issues. You can choose everything from colour to design from scratch as per your preferences.
RERA protection
The Real Estate Regulatory Authority (RERA) implementation plays a major role. In 2017, RERA made it compulsory for new and under-construction properties to get registered. This will prevent you from any scams and unnecessary delays.
Disadvantages of fresh booking properties
Late possession
Under-construction projects might take a lot of time to deliver. Due to this late possession, you may have to pay both the home loan EMIs and rent simultaneously.
GST on total property cost
When you buy a property in the primary market, it attracts Goods and Services Tax (GST). New properties have a GST of five per cent of the total cost. However, this does not apply to ready-resale properties.
What are resale properties?
A resale property is one that once has been possessed by a buyer and is now ready to be sold again. It can occur from the first buyer or someone who had previously bought the same from someone else.
Advantages of resale properties
Negotiation
The resale property provides an opportunity to negotiate, especially during a market slowdown. This helps you get significant discounts as investors or sellers might want to exit the market as soon as possible.
Ready-to-move
Such properties often provide ready-to-move options. Therefore, you can save your rent and occupy it much earlier than fresh booking properties.
Disadvantages of resale properties
Payment
Resale property owners generally ask for a lump-sum payment or a few instalments in a short time period. This will lead you to arrange a huge amount on an immediate basis.
Broker fees
When you involve a broker in a resale deal, you will have to pay extra expenses. They usually charge 1 to 2 per cent fees of the total value of the transaction.
Exclusion of RERA
Properties predating May 1, 2017, and possessing an Occupation Certificate are excluded from the purview of RERA. Consequently, investing in such properties carries a higher risk compared to newer ones.
Transfer of fee
Certain developers impose a transfer fee when a property is resold, effectively raising the overall cost.
FAQs
Which is better for buying, resale or a new flat?
The choice of buying varies on individuals, but a resale property is cheaper than a new flat.
What dangers come with purchasing properties through initial bookings?
Potential risks associated with purchasing properties through fresh bookings encompass delays in construction, alterations in design, undisclosed expenses, and uncertain future valuation.
Which one is better, fresh booking or resale properties?
There is no exact answer to this question, as both types of properties have their advantages and disadvantages. Therefore, the choice depends on your preferences, budget, and goals.
Which is more expensive, fresh booking properties or resale properties?
The cost is influenced by factors such as location, amenities, size, and demand. Typically, fresh-booking properties might have a higher price due to modern designs and amenities, although this is not a constant rule.
What to consider before buying a resale property?
When contemplating the purchase of a resale property, it's important to assess the property's condition, and potential need for repairs or renovations, and evaluate the location's growth prospects.
Can I negotiate the price of a new property?
During the initial booking stages, you have the opportunity to negotiate the price of a fresh booking property. However, it's important to note that successful negotiations aren't guaranteed.
Should you hire a real estate agent when buying properties?
Hiring a real estate agent can benefit you when buying properties. However, it is important to choose a reputable and trustworthy one.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
Khushi Jha, a graduate in history and political science from the University of Delhi, doesn’t restrict herself to a single domain. Her passion for writing has led her to explore a wide spectrum of topics, ranging from fashion, health and lifestyle to technology, real estate and finance. She has written for platforms like TheVoiceOfWoman, Techsunk, Fitmist and Menskool, among others. When free, she enjoys reading books, including fiction, history and geopolitics.
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