Is it sensible to buy resale flats?

Feb 01 2014, 15:50 IST
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The immediate possession can provide tax benefit from the first EMI itself. Reuters The immediate possession can provide tax benefit from the first EMI itself. Reuters
SummaryThe resale flats are an affordable solution to the accommodation needs of the salaried individuals.

provides a ray of hope by offering flats at a cheaper rate.

Purchasing a resale and ready-to-shift flat helps save a good amount of money that would otherwise have been expended in paying rent or EMI and rent both, in case of under-construction dwellings.

There are no cloaked or honey-dipped features for this market. Everything that is in front of your eyes is yours once you own the property.

The immediate possession can provide tax benefit from the first EMI itself.

Some Grey Areas and Pitfalls

There are some areas that need attention when purchasing a flat from the resale market.

Checking the documentation carefully is the foremost thing that demands due consideration.

It is essential to check whether the seller is the true owner of the property.

It is also vital to ensure that the seller doesn’t have any dues to the society, building or against the house that you may have to pay later.

It is imperative to check the physical condition of the flat before investing your hard earned money into it.

What if the Flat is mortgaged?

If the flat is mortgaged with a bank, the owner needs to procure a document from the bank affirming that it agrees to give the documents to the buyer upon the full payment of the loan. As soon as you transfer the money to the seller’s account, whether in cash or through home loan, the bank will release the original documents immediately, along with a no-dues certificate.

How to Choose?

There are certain essentials that make the selection process an easy and productive one.

The age of the property should ideally range between 1 to 5 years to a maximum of 10 years.

Know about the reputation of the builder and the quality factor associated with his past developments.

Understanding the reason behind the sale will help in uncovering the problems and issues with the property, if any.

Considering the surround environment, proximity to important areas and amenities available in the vicinity also affects the final decision of purchasing a resale flat.

Actual Profitability

Nothing can be more profitable than purchasing a flat at a price much lesser than the market rate. Moreover, the resale flats are fully constructed and come with a ready-to-move-in tag. One of the biggest benefits that the resale apartments provide is the tax benefit after gaining possession. A deduction of Rs. 1 Lakh on the principal of EMI

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