Before you take that home loan to buy your house, you must have wondered about a major question- which is the better choice, a new home or a resale home. Resolving this query is important before you get into the throes of the home loan process including using home loan eligibility calculators for working out the suitable loan amount and finding out the monthly EMI with the online home loan EMI calculator. It is up to you- do you want a home that has been owned previously and may require fixes, mechanical jobs and other modifications to reflect your own tastes and aspirations? Or do you want a spanking new home that is more contemporary and fits your needs to the T?
This is a question that you must figure out the answer to since there are many resale properties that one can fall in love with. There are several well-maintained and strategically located resale properties which people cannot resist at times. On the other hand, there are several new projects in upcoming locations and with the Pradhan Mantri Awas Yojana, if you choose something in the affordable housing category, you stand to gain interest subsidies as well in addition to a competitive home loan interest rate if it is a new property.
There are several reasons why people often prefer resale properties. These include the following:
- You wish to live in a prime neighborhood where new projects are hardly available
- You may wish to live near your workplace or other social infrastructure but new homes are not available in this location
- You may have a desire to buy an old home and transform it, giving it your special touch
- Often, special attractions like the view, connectivity to major entertainment/recreational hubs and other factors influence buying decisions
- Prices may be 15-20% lower for resale properties
However, it may be a better decision if you choose a new project like Ganga Legend Bavdhan in Pune or others. The following reasons come in handy-
- Transforming old houses is a costly affair. You may have to renovate several things including the paint, wallpaper, rooms, fittings and fixtures and so on.
- De-assembling and fitting gadgets like ACs, televisions and so on may be a tedious affair.
- It may be difficult to ensure higher energy efficiency with the current set of lights and other fixtures in an old home.
- Most lenders usually prefer new projects when it comes to sanctioning loans.
- New homes usually give you more flexibility to plan the layout, fittings, materials and so on.
- Structural foundations and other aspects have to be carefully checked in case of resale properties.
- Buying a resale property means depreciating value in later years as compared to new properties.
However, if you do find a resale property that has been well maintained, does not become a costly affair for you and fits the bill in all senses of the term, you can go for it without hesitation. It all depends on how well you do your research and what you ultimately choose.