Resale Properties are a boon in this turbulent real estate market. Since they are ready to move, there is no skeptism on the delivery of the property, quality of construction as societies are already inhabitated and no double expenses of rent and EMI, and no need to pay tax (GST) for under contruction resale units.
As buying property incurs a huge investment, almost upfront, as it is ready for handover and seller is an individual too, it’s really important to ensure your investment in the property can generate better returns in future. So in this article, I will let you know some of the important points, that you should keep in mind at the time of buying a resale property.
- Market Knowledge –It is important to understand the real value of the property since the market keeps on changing as per the demand and living standards of the vicinity. Visit the society where you are planning to buy a property and talk to the residents about the livability factors, security, connectivity and other important needs. Conduct an on-ground research and gather all the required information. Don’t just sit in the front of your computer to understand the real value of the localities.
- Property Ownership–It is very crucial to check whether the seller is the true owner of the property. If the property has changed ownership several times, seek the history of the property along with the construction year. You can contact the country tax assessor to check if someone is paying tax for the said property.
Some of the other ownership documents like Property tax payment, title clearance etc should be checked. You can seek help of any of the official or lawyers. Also check, if the current owner has any bill pending to the society, otherwise you have to pay the charges later. In case of independent houses, check if there are any pending dues to the authorities like house tax, water tax etc. Ensure or clear with the seller on the pendency or else you will end up paying for charges which you didn’t incur.
- Plan Approval vs Actual Construction– Do a proper check on whether the construction of the house is as per the plan approved by authorities, especially in case of independent houses. Reason is that in case of deviations, the authorities can sought for demolition. In case there is a moderate deviation, the same can be regularised by paying penal charges, provided the same is agreed upon by the development authorities.
- Ongoing liability of the property– Don’t forget to check if the seller has any ongoing home loan on the same property. If yes, then check with the owner and his loan institution for the option of a balance transfer to any financial institution of your choice, or the one you are dealing with for loans.
- Budgeting –While buying a resale property, you have to pay bills and taxes a number of times. So, it will be better to make a list of billers. Like Property Registration cost, Transfer Cost, Broker Fees, and taxes.While ascertaining the total value of the property, do count in these smaller costs and taxes to understand the actual cost.
- Location –This is the most important points to keep in mind. Always choose a good locality with a crowd that matches your lifestyle. Also, buying property is an investment, so you should aware of the future developments in the location. Additionally, please ensure the things of basic necessities like school, hospital, bus stand, and super markets are available at footsteps distance.
- Awareness –You might be getting a good deal, but it’s a very crucial thing to aware of the reason behind the selling of the property. Police verification and talking with neighbors and society will definitely help you to get lots of information about the said property.
- Original Property Documents – In case you finalize any property to buy, do check if there are any defaults by selling party at present lending institution. The current owner of the property has to give an undertaking to the financial institution, that he (the owner) has agreed to give property papers to the buyer (you) upon the home loan for closure. When you transfer the money to the seller’s account, the bank will release the original property papers along with a NOC. Finally, you own the property and you are the owner of the property now.
- Loan Availability –Financing your home through a home loan is always preferred. Before paying any booking amount to the owner, check if loans are available for the resale property you are looking to buy and if you are eligible to avail the loan as per the property value. You can use home loan eligibility calculator to get a brief idea of your eligibility of Home Loan.
I will personally recommend you PNB Housing Finance Limited for the home loan requirement. The reason is that they are reliable and working from three decades in the sector of housing finance.
PNB Housing is a registered housing finance company with the National Housing Bank (NHB). It offers home loans and non-home loans to salaried and self-employed customers in a quick and convenient manner with services like doorstep delivery, post disbursement support, omni channel based customer communication etc. They even offer pre-approved loans where you can get a loan sanction basis your eligibility and then search for a property basis the sanctioned amount.
The Company is also into Property services where it has access to a wide range of properties because of their real estate network and will help you to select the most optimal property under your budget and requirements. Remember, PNB Housing will be an interface between you and the real estate developer and will not be involved in the process itself. Visit https://www.pnbhousing.com/property-search/ to connect with PNB Housing. Resale property is a great bet if you are able to choose a property best suited to your needs and budget. They allow to move into your dream house just immediately as they are ready to move in. But remember, there is lot to be done before you strike the right deal.