Buying an older property could be a good investment if careful, says OM AHUJA
The advantage of opting for a resale flat when looking for property is that one can stay in a good location where no new apartments are being constructed.
If one has personal cash resources and is not reliant on a home loan, buying a home in a project that is 20 years or more in age can be a good investment.
All original documents that are applicable for a primary property sale will be required for a resale transaction.
The buyer should establish the existence of a proper building society. The original sales deed and the Society share certificate are most important, since the transaction cannot proceed without these. In the case of a resale property, proper transfer and re-registration documentation is required.
The documents required for registration of residential flats, apart from the sale deed, include a letter from the society with details such as the number of floors in the building, the construction year, the built-up area and number of lifts.
Also required is an assessment bill to the Society from the municipality, a NOC from the Collector if the building exists on Collector's land, a copy of the property card, and a receipt for the payment of registration fees.
Are resale properties cheaper?
Not necessarily. In larger cities, new property supply is scarce in many central locations, which means there are no discounts on resale property. However, there is a possibility of flexibility in terms of payment.
Challenges in registering resale properties
There are certain challenges that a buyer of a resale flat may face. For instance, a lack of proper documentation, especially in cases where the property has changed hands more than once in the past. If the property is over 18-20 years old, it is possible that it was never formally registered in the first place. Registering it now will put the onus of paying the stamp duty with arrears on the buyer. There may also be additional expenses towards repair. Also, getting home loans for a property that’s anywhere close to 50 years old can be a challenge. Finally, bear in mind that you are unlikely to find the facilities and amenities that are available in newer projects in an older building.
(The writer is CEO
– Residential Services, Jones
Lang LaSalle India)