The very thought of buying your own home brings on feelings of excitement, euphoria as well as levels of wariness. Add to that another decision on whether to buy a brand new or a pre-owned apartment, and your world gets thrown into a quandary! So before buying your new home, you need to get a good idea of the advantages and disadvantages of home buying in relation to brand new and second-hand apartments.
First, a look at the advantages of buying a pre-owned apartment:
Lower rates: Any second-hand item is relatively lower in cost than the current rate for a new one. You don’t get to pay for hidden charges which are usually associated with buying new homes; also the materials used in older buildings were of better quality than current ones, so gains all around!
Time Saver: You don’t have to go through a long waiting period for the apartment to be completed and to end up draining your pay check paying both EMI as well as rent at the same time for a new apartment. As soon as the documents are signed, you can move in pronto!
Effort Saver: In buying a pre-owned home, you get to save on interior finishings as the owner would have already installed the cupboards, appliances and wood works, etc. You can also get to see your neighbors beforehand before buying as you will be stuck with them for years.
Risk Saver: When buying a new apartment, there is always the risk of the project getting delayed or not getting completed at all. With pre-owned homes, the question doesn’t arise.
A look at the disadvantages of buying a pre-owned apartment:
High Maintenance: Older buildings have higher maintenance costs; the previous owner may not let on to the defects pre-existing in the apartment, and these will only come to light after you move in. So the ‘what if’ fear factor of the unknown problems, is a major one that you must give serious thought to.
Payment Risks: Most pre-owned property sellers ask for cash payments to circumvent tax payments; this could put you in a legal quandary, aside from having you cough up a large amount in a short period. Meanwhile, buying a new apartment means a staggered payment system that is above-board.
Customization Deficient: With a pre-owned home, what you see is what you get. The apartment might not have recent advanced safety installations like smoke detectors, circuit breakers, and security measures like video/audio door phones. Newer apartments combine style with functionality, which you might miss out on a used home and you will end up spending more on upgrading.
Warranty Risk: A major shortcoming with pre-owned homes is that there is no third party warranty for the actual condition of the house and you are at the mercy of the owner’s word!
Other things to check before signing on the dotted lines, is to see if the owner has paid up all dues to the builder. You also need to confirm that there are no outstanding loans taken against the property. If needed, get a lawyer to ensure that the ownership papers are authentic and no dispute is attached to the property.
With all this information, you have hopefully got a better idea on the next plan of action for purchasing your dream home!