04 JULY, 2022

Buying a house is no less than an achievement. It enhances your pride, status and contentment. However, the process to buy a house could be challenging for many. You need to decide the budget, choose between exhausting your savings or taking out a loan and then start hunting for a house. Once you have zeroed in on the location, you might have one more pressing issue to handle - whether to buy a resale house or a new house. New houses are properties that have been recently built and you buy them from the developers. Resale or preowned houses are properties that have already had previous owners.

Here is an easy guide to help you choose between a new house or a resale one.

 

  • Budget

You must have a budget before you set for house hunting as it can help make your choice. Resale houses can be comparatively cheaper than a new property. However, you must know that you would have to pay other costs with the house price like registration fee, transfer fee, stamp charges, etc., which could add up to a similar cost as a new house. Secondly, the location would significantly impact the cost of the house. A resale house located in a prime location could be more expensive than a new property located in a remote area of the city.

 

With a resale property, you would need to oversee the entire process like background check of the seller, title check, availing a home loan, document verification, etc. However, in new houses, the maximum part of the process is taken care of by the developer. You only have to arrange for the funds or check your affordability with a home loan EMI calculator and avail a loan.

 

  • Repairs and fittings

Typically, a new home comes with already installed fitting and fixtures. They are newly painted and have all the safe electric fittings and plumbing done. However, in a resale house, you could have to spend on repairs and renovations. Usually, in resale homes, there are issues with wirings, fittings, old furniture, pests, etc. In a new home, you ask the builder to give you all amenities as per your need before handover.

 

  • Resale value

You never know how long you will live in your house. If you ever need to sell your house and move out, a resale house might not be able to fetch you a high price as a newly built home. However, the construction and location of the resale house could make an exception. If it has been skillfully built at a prime location, it could have a higher resale value.

 

 Your choice between a new or a resale house should depend on your preference, affordability and needs. You must identify your requirements, lifestyle preferences, financing needs, etc., while making a decision. Ensure to buy your dream home carefully. If you need funds, apply for home loan after checking your eligibility.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.