Posted on 01st August 2018 Author: Planet Homes
Buying a property is a big decision as it is a big ticket item and gives good return on investment with time. There are a lot of things that needs to be taken into consideration when buying any property. Location and price are undoubtedly the most important factors while making a property purchase, but whether to buy a new or resale property is also an important decision that a buyer has to make. The debate an investor and buyer always go through is whether to invest in a new property or resale property. Investing in a new or in a resale property, each has its own pros and cons which one has to assess carefully before coming to a conclusion. Here are few points to take into consideration that can help you make a decision.
The purchase value of a new construction is considerably high as compared to resale properties, as the property will be brand new and holds more years to its life. The builders will charge more money for new construction especially if he’s pre-selling the property. Resale properties cost less as they doesn’t have a premium tag. The older the property, lower will be the resale value compared to the market rate at that moment.
Buying a property in new construction needs very less maintenance cost as most of the maintenance is already been done by the builder & even if there are any customized alterations, the builders usually incorporate them while building the property so the property is ready for move in. For an old property, you need to keep extra money in hand to make the changes and alterations of your choice in the property. It will eventually take more time for move in compared to the new construction property.
The documentation and legal formalities are relatively lesser and hassle free when it comes to buying a new construction property. For older properties, there is a lot of paperwork involved and it can be complicated at times if the previous owner doesn’t have all the required documents.
The buyer may face a delay in getting the possession of the property if the property is under construction. Often it happens that the construction isn’t completed within the given timeline and the buyer has to wait more than he had been told to move into the property. Wherein it is easy to get the possession of resale property as it is already made and set to move in most of the time.
Investing in a new property will give the benefit to the buyers of claiming depreciation against new property. The depreciation value decreases on the older properties. Each property has different rates on depreciation which is to be decided upon the size and inclusion. But newer constructions will have the highest rates of depreciation.