The Pune real estate market has been growing steadily, attracting home buyers and investors alike. With its thriving IT hubs, educational institutions, and infrastructural development, the city offers ample opportunities for property buyers. This has led to a huge influx of people choosing to come and settle in Pune.
But, with this influx of people, property prices continue to rise, which makes buyers often face a dilemma: should they invest in a resale property or opt for a new one? Both options have their advantages and drawbacks, depending on factors such as budget, location preference, urgency, and long-term goals. But how do you decide despite considering all these options? This blog will compare the pros and cons of buying a resale property versus a new property, helping buyers make an informed decision.

What is a Resale Property?

A resale property refers to a home that has been previously owned and is being sold by the current owner rather than a builder or developer. These properties are typically in established neighbourhoods and may have undergone renovations or modifications.
Common Reasons for Selling a Resale Property
Over the years, it has been identified that most of the times the reason for selling a property is one of the following. It could be good to know the reason for selling before you consider buying such a property. Here are some possible reasons:

1. Owners relocating to a different city or country
2. Upgrading to a bigger home or downsizing
3. Financial reasons, such as liquidating assets
4. Investors selling to realize profits
5. Change in personal circumstances (e.g., marriage, job change, etc.)

Ideal Buyers for a Resale Property
Considering these reasons, there could be some ideal buyers who could consider buying these properties.

1. Buyers looking for ready-to-move-in options
2. Those preferring developed localities with existing infrastructure
3. Investors seeking steady rental income
4. Budget-conscious buyers want better price negotiation

What is a New Property?

A new property is a home that has been recently constructed and is sold directly by the builder. These properties can be in different stages of completion, including pre-launch, under-construction, and ready-to-move-in homes. These are often in upcoming areas or where the area is still developing with enough amenities.
Types of New Properties: Let us look at some possible types of new properties.

1. Pre-launch: The property is in the early planning stage, often sold at lower prices.
2. Under-construction: The building is in progress, offering lower costs but with a waiting period.
3. Ready-to-move-in: The property is completed and available for immediate possession.

Who Should Consider Buying a New Property?

Do you think you are the right person to buy such a property? Find out! Here is a list of different types of buyers who should consider buying a new property:

1. Buyers wanting modern amenities and design
2. Those willing to wait for possession in exchange for lower initial costs
3. Investors looking for higher appreciation potential
4. First-time buyers seeking government incentives or financing benefits

Pros of Buying a Resale Property

Now that we have looked at the two different kinds of properties, let us also look at the pros and cons of considering each of these property:
1. Immediate Possession: Since resale homes are already built, buyers can move in immediately after the purchase, avoiding long waiting periods.
2. Lower Cost: Resale properties often come at lower prices than newly launched projects, with better negotiation possibilities.
3. Prime Locations: Older properties are often situated in well-developed areas with better connectivity, schools, hospitals, and markets. This makes them more convenient localities to live in.
4. Less GST Impact: Unlike new properties, resale homes do not attract GST, making them more affordable to first tiime buyers
5. Transparent Property Condition: Buyers can inspect the actual condition of the home, verifying the construction quality, maintenance, and surroundings. Even have access to ask residents about thee available resources – water, and electricity in the society.

Cons of Buying a Resale Property

1. Higher Maintenance Costs: Older properties may require frequent repairs, leading to higher maintenance costs. Especially if there is furniture or other things that might come with the house. Washroom pipes, window grids and other objects might also need repairing.
2. Limited Customization: Unlike new homes, resale properties may not allow much scope for interior modifications or layout changes. These are often complete construction and need to be used as it is unless a renovation is considered.
3. Legal Risks: Resale properties may have legal complications, such as pending loans, ownership disputes, or unpaid dues. Buyers must conduct thorough due diligence.
4. Lower Loan Eligibility: Banks may not provide full financing for older properties, affecting the buyer’s loan eligibility. Even the possibility of the building going into redevelopment can affect your living situation.

Pros of Buying a New Property

Now that you have looked at the pros and cons of the old properties, let us look at the same for new properties.
1. Latest Amenities & Modern Design: New homes offer contemporary layouts, new and innovative constructions, and advanced features such as smart home automation.
2. Lower Maintenance for Initial Years: Since everything is brand new, buyers face minimal maintenance costs in the initial years for the home.
3. Energy Efficiency & Smart Home Features: Modern homes are built with eco-friendly materials, better insulation, and energy-efficient appliances, leading to long-term savings.
4. Better Financing Options & Builder Offers: Builders often offer flexible payment plans, discounts, and incentives, making home buying easier.
5. Higher Appreciation Potential: New properties in upcoming areas may see rapid price appreciation over time, making them lucrative investments.

Cons of Buying a New Property

Now that we know the cons let us look at the cons as well:
1. Higher Costs & GST Impact: New properties are subject to GST, making them costlier than resale homes.
2. Construction Delays in Under-Construction Homes: Delays in project completion can lead to financial strain, especially for buyers paying rent and home loan EMIs simultaneously.
3. Uncertain Infrastructure Development in New Areas: Many new projects are located in developing areas where infrastructure and connectivity may take years to improve.
Investment Perspective: Which is Better? Let us take a quick look at which one is better for you to make an easy decision.
Resale Properties: Offer steady rental income, immediate possession, and predictable returns, making them a safer option for long-term rental investors.
New Properties: Have higher appreciation potential, modern features, and better amenities but may take longer to deliver returns.

Conclusion: Which One Should You Choose?

The choice between a resale and a new property depends on individual needs and financial circumstances. However here are some things to consider:

1. For immediate use and better location: A resale property is ideal.
2. For modern amenities and long-term investment: A new property is a better option.
3. For budget-conscious buyers: A resale property offers better deals.
4. For first-time buyers: A new property provides better financing schemes and lower maintenance.
5. Evaluating these factors will help buyers make an informed decision aligned with their long-term goals.

FAQs

1. Is it easier to get a home loan for a resale or new property?
New properties often have better financing options as banks prefer newer constructions. Resale properties may face lower loan eligibility if they are older.
2. Which property type has a higher resale value in the future?
New properties in developing areas tend to appreciate faster, while resale properties in prime locations retain steady value.
3. What documents should I check before buying a resale home?
Key documents include the sale deed, property tax receipts, occupancy certificate, loan clearance certificate (if applicable), and society NOC.
4. Do resale properties have hidden costs like transfer fees?
Some resale properties may have additional costs such as society transfer fees, stamp duty, and legal charges. Buyers should verify all expenses beforehand.
5. Is Vastu compliance better in new properties?
New projects are often designed with Vastu principles in mind, while older properties may require modifications to meet Vastu standards.
By carefully weighing the pros and cons, homebuyers can make a well-informed choice that aligns with their financial goals and lifestyle preferences.