Tips On Investing In Resale Properties In India
Real estate is a business that is flourishing in India at a fast pace. The credit for this development goes to the increased income and the lavish lifestyle of modern youths who are keen to make an investment that supports their future. With metropolitan areas being the major hub for economic growth, many people are keen to invest their hard-earned money on these cities for a higher return on investment. To keep up with the increasing demand, many developers have launched new residential projects in Mumbai. While we always desire new things for ourselves, it is wise to invest in old properties when it comes to India, since there are many added benefits.
Instead of waiting for the price of the real estate market to fall, one should think about investing in properties that are available for resale. Resale properties in India in good condition are priced at 10% lower than the market price for new apartments. Purchasing a ready to shift apartment is more profitable than investing in an under-construction residential project, as the amount of money that would have been spent on EMIs and rent are both saved. Though, only the 'new' tag will be missing and the investor might have to bear with minor repairs and decor rearrangements, the fact that the building was built by a legal builder, as per the rules, will sound more comforting to them in the coming future.
The price of residential and commercial property in Mumbai vary from place to place depending on the locality, the builder, the city, and its age. While the locality plays a considerable role in determining the price range, the major difference in the price value of each apartment rises due to the infrastructure used. Though there are many benefits of buying a resale home, there are some loopholes that need to be checked before investing in one. While purchasing a resale flat, one often needs to pay at least 20% down payment in cash on the total amount of the apartment. This amount is inevitably higher than the amount requested by the builders as a down payment for booking. The documentation and the registration proof of the flat should be demanded before investing. The physical condition of the flat should also be analyzed prior to drafting an agreement. The age of the flat should be less than 10 years, for security concerns.
Apart from this, the investor also has to bear with other miscellaneous expenses, such as transfer fees, agent fees, stamp charges, registration fees, etc. It is important to conduct a thorough background check of the previous owner and see if he has cleared all the society bills and other dues before selling. Failing to which the new owner will have to pay all the expenses. As long as all these points are considered, investing in real estate in Mumbai will be more profitable, at a time when real estate prices are rising.
