Buying a house is one of the most important milestones in one’s life. It not only carries a lot of emotional weight but also includes a substantial financial commitment. To ensure that everything goes well and you don’t regret your decision later, it is important to plan everything. Whether you are a first-time homebuyer or are planning to upgrade your house, there are so many factors that you need to take into consideration, such as budget, location, etc. Once these initial things get finalised, you have to weigh various options before taking a pick.
Although the decisions that one needs to make in the process of purchasing a home are never-ending, the biggest one is choosing between a new home and a property available for resale. This is an age-old debate that almost every homebuyer has been a part of. However, both options come with their own set of advantages, which makes decision-making even more difficult.
Here is a detailed explanation of which one you should choose and why:
A Closer Look
New build houses, as the name suggests, are the ones that have never been sold to anyone. While buying a new home, you directly deal with home builders. Resale houses, on the other hand, are already owned by someone, and you need to deal with the previous owner in order to make a purchase. Other than this fundamental difference, there are so many things that make new and resale properties different from each other.
New vs. Resale Home
Here is a comparison between these two different types of houses on the basis of several factors:
Price
Budget is undoubtedly the most important thing you need to consider while buying a house. When you have a clear idea of the price range, it gets easier to shortlist a few options that you can consider. This is a common belief that the price of a resale property is always lower than that of a newly built one. However, this is not always true. At times, a resale house can prove to be a lot more expensive as compared to a new one. The simple reason behind that is that there will be some additional costs as well. Apart from the usual expenses such as stamp duty, registration charges, etc., the cost of wear and tear of the property will also be involved.
Resale Value
Whether you are buying a house for investment purposes or plan to live in it, this is one important thing you should always focus on. The locality and its scope of infrastructural growth have a major impact on the resale value of a particular property. However, the condition of a house is also an important factor that determines the profit margins you’ll be able to make by selling it. As a result, new construction will always have a better resale value when compared to those that are relatively older.
Flexibility
When you choose to buy a house that is available for resale, you will have to put in an extra amount of effort if you want to change the design and interior. For every element you plan to change, there will be an additional cost as well. But when you buy a new house, you get more flexibility in terms of customization. Generally, property developers give you the option to choose certain things like fittings, fixtures, etc. So, as a result, it is easier to design your home the way you like.
Home Finance
Making a house purchase is a major decision requiring a large amount of money. If you don’t have enough funds to make the complete payment at once, obtaining a home loan is the most practical solution you have. There is no denying the fact that getting a loan to buy a new house is less complicated when compared to obtaining finances for resale properties. Every lending institution has its own norms, but usually, the process requires additional formalities for properties with a previous owner. There are certain restrictions on the loan tenure as well. You might have to arrange a higher down payment to make the purchase, and the repayment period would be much shorter as well. In addition to that, you will also need to submit a number of documents to process a change in ownership. And if the property is already on loan, then one has to submit those documents as well.
Maintenance
When you buy a house that someone has been living in, the fittings and fixtures you get will be old. This also means that you will have to get some repair work done before moving in. This can include anything from plumbing to painting, electrical wiring, etc. But when you plan a new house purchase, you can avoid all these things, as you’ll be the first one to live there.
Wrapping It Up!
When it comes to things like finance availability, resale value, and home construction, it is always better to buy a new house. Resale homes, on the other hand, are a better option in terms of affordability. So, the better option for you is the one that matches your personal preferences and requirements.
If you are planning to buy a residential real estate property in Chennai and are looking for options, we’ve got your back. You don’t need to make Google searches like ‘flats/apartments for sale in Chennai’, ‘house for sale in Chennai’, ‘individual house for sale in Chennai', or ‘villas in Chennai’. Offering a wide range of properties in Chennai, VGN Projects Estate gives you plenty of options to choose from.