The demand for resale apartments in India is much higher than the primary sales. The demand for the resale apartments are mainly from the first time home buyers with limited money and from the real estate investors who are buying property for monthly rental income.
Resale real estate searches are huge in metro cities like Mumbai, Pune, Hyderabad,Bangalore, Kolkata and Chennai because of the high demand for rental properties. In Commercial real estate you can expect 6 – 8% returns and in residential you can expect 2- 3% returns.
Below are the few pointers to be considered while planning to purchase resale apartments in India.
- Research the locality: Look for an apartment in a desirable location that has good schools, transportation, and amenities nearby. In metro cities mostly investors choose the location near IT parks and that works often well. For example in Chennai the demand for new flats in Madambakkam has grown to 900% and the demand for apartments in Velachery which is closer to IT parks is still stable. Investors can choose their preferred location based on their budget.
- Determine your budget: Determine how much you can afford to spend on a resale apartment and stick to your budget. This is the common mistake most first time buyers are into , before estimating the budget and checking their eligibility for housing loan they start the search and finalise the property and while approaching the bank for loan only then they realise they are not eligible for more than 50% or whatever they require.
- Get pre-approved for a mortgage: It’s a good idea to get pre-approved for a mortgage before you start looking at apartments. This will give you a better idea of what you can afford and help you narrow down your search.
- Hire an agent: A real estate agent can help you find the right apartment and negotiate the best price for you.
- Consider the condition of the apartment: Be sure to inspect the apartment thoroughly before making an offer. Look for any major repairs that may need to be made, such as a new roof or Heating ventilation and air conditioning system.
- Check for any liens or encumbrances: Be sure to check for any liens or encumbrances on the apartment, such as outstanding mortgages or taxes, as these can affect your ability to purchase the property.
- Negotiate the price: Don’t be afraid to negotiate the price of the apartment. If you find any issues with the property, you may be able to use them to your advantage during negotiations. Do complete research about the guideline value and the selling price in the locality.
- Get a home inspection: It’s always a good idea to get a home inspection before purchasing a resale apartment. This will help identify any hidden issues that may not be immediately apparent.
- Understand the contract: Be sure to carefully review the contract and any other documents related to the purchase of the apartment. This will help you understand your rights and responsibilities as the new owner. If you are buying the apartment in a gated community make sure you read the bylaw of the community as well.