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Make The Right Choice Between Resale and Under-Construction Property

By Sateesh Kalla - Jul 11,2019
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There are many pros and cons for both under-construction properties and resale flats; the choice being made based on many parameters like financial costs, emotional connect, lifestyle etc. When you take a home loan to finance your housing dream, it is the key that you only get the best. Finserv MARKETS can bring the best financing options as you search for the best housing options.

Below we cover a few critical aspects every property buyer needs to keep in mind before finalizing on one option:

Sr. No Critical Aspects Resale Under construction
1 Readiness to Move in Immediate possession Will take time for completion of the project.
2 Property possession issue No Possession issues are expected from the builder as already residents are staying. There can always be a delay in possession due to many issues, including and not limited to:

●       Legal issues

●       Non-adherence to norms

●       Liquidity crunch

3 Monetary Aspect – the outflow of money Benefits include:

●       Savings on rent

●       Tax benefits

●       EMI from day 1, so loan burden will come down

●       Rent expenditure will continue

●       No tax benefit

●       Interest on the borrowed amount to be paid

●       EMI will start after possession

All these expenditures have to be added to the property price, that is the price which is actually being spent to purchase the property.

4 Location Advantage Will likely be available in prime locations. Due to space constraints in prime locations, builders prefer outskirts.
5 Commute time and travel Most of the resale happens in prime locations, so these will have limited issues on travel and transport. As the new projects are developed on the outskirts, travel time and transportation will shoot up.
6 Space Advantage – Liveable space (Carpet area) ●       Liveable space (carpet area) is higher and common spaces are lower for projects that are 3 years old

●       While old projects had  only 1 staircase, now 2 staircases are found in the building

●       Earlier common corridors, garden spaces, amenities were very limited

For all new projects as the loading is higher, carpet areas (liveable space) has come down.
7 Price Will be 10% lesser or at par with the new construction property prices. As per the current market rate. In any case, you can make use of the Bajaj Finserv home loan calculator to figure out the financial context.
8 Value for Money The resale property comes at a lower price. Current market trends determine this.
9 New Lifestyle & Technology Resale flats are to be upgraded. Will be as per new technology and style.
10 Society & Community ●       The formation of society and committee is already in place

●       Issues would have been identified & possibly resolved

●       Society maintenance and hand-over issues from builder would be completed

●       A new society is to be formed

●       Issues to be identified and addressed

Now that you have a fair knowledge on what parameters to take into consideration when avail a home loan, why not avail the same on our website. With 100% transparency, loan amounts up to Rs. 3.5 Crore and a host of benefits, apply today!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522