Purchasing a home in India is no cake-walk as the process is lengthy and challenging as well as creates a toll on you mentally and emotionally. Not to mention it creates a deep hole in your pocket so you need to be financially ready before embarking on this real estate journey.
The decision from whom to buy a house is as significant as the timing of the acquisition. When you wish to book a 1 BHK home in Powai, you may have to pick between buying a fresh unit from a real estate developer and purchasing from an owner – basically identified as the primary and secondary markets, respectively. Both the options come with their benefits and drawbacks. It is up to you to make an informed selection based on the nuances involved in each of these choices.
Benefits:
New Home (Fresh Booking)
- If you’re looking at new homes in MMR, an under-construction new unit may let you acquire customized payment plans, the most famous being the construction-linked plan. The ease of payment is considered to be the biggest benefit of purchasing an under-construction unit from a real estate developer.
- Since the unit is fresh and also unused, you don’t have to fret about the chipping paint or nail holes. You can make elaborate alterations to your unit from scratch.
- After the RERA was established on 1st May 2017, all under-construction and new units are obligated to be registered under RERA. Purchasing a new house will make sure the transparency of all the details and transactions. Additionally, the Appellate Tribunal under RERA will also guard your interest in case of delay or default from the side of the developers.
Resale:
- When the market is slow, you will have the power of negotiation and may end up with lucrative discounts in the resale (secondary) market.
- Investors may reduce prices to make anxious efforts of leaving the real estate.
- Even genuine sellers could decrease rates to percolate the developer’s market.
- If you’re looking at resale flats in Mumbai, ready-to-move choices are available more easily in the resale market. You could buy a flat which is close to possession and move into it within a couple of months.
Drawbacks
New Home:
- If you’re looking at the best properties for sale MMR, booking an under-construction new home has the risk of delayed possession. Even though RERA ensures the safety of homebuyers, you may have to pay both EMI and rent in case of a delay in the project.
- Purchasing in the primary market would draw a GST of 5% of the entire expenses of the home. You don’t have to pay the tax if you opt for a resale property.
Resale
- The resale market typically needs a lump-sum payment, in a few installments over a short duration of time. It would be tough to organize for the instant and hefty down payment.
- Older properties with Occupation Certificate (OC) as of May 1, 2017, are not included in RERA, thereby making them a potentially risky real estate investment.
To sum up, there are pros and cons to both fresh units as well as resale properties. You should make a decision based on your needs, preferences, and budget. Check out IndexTap to peruse an extensive list of residential properties in MMR.
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