Hi all,

Can someone throw light on the pros and cons of buying a flat directly from builder (which might be at higher price) or buying the a in re-sale (at comparatively lower price than offered by builder currently)?
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  • If u have the availability of colored money with u , u can always go in for a resale . The negative is that u lose on the transfer charges , since normally the first transfer is free only ( if u have to sell it , u may have to shell the transfer charges from yr. pocket). The positives r , that u have complete details of the project with u & can evaluate , the pros & cons of it . U r much better aware of the potential of the project too.


    Guys , comments please & correct me, if i am wrong.
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  • You can buy for either . just make sure the title, ownership, NOC from authorities and all other docs related to the property are in place.
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  • Very valid point , MM. All papers have to be in order.

    Originally Posted by Munish Malhautra
    You can buy for either . just make sure the title, ownership, NOC from authorities and all other docs related to the property are in place.
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  • just a quick question on this, in case if we buy in resale there can be a problem that builder won't give NOC to seller (if the project is still under construction or project is still with builder),

    Secondly Builder can ask some good amount of money from the seller and this can jeopardize the deal with the seller.

    Thirdly going forward builder won't entertain you as you haven't bought flat from him

    Actually, i faced similar issues while i was in Pune. I am not very sure whether similar issues can pop up there or not.

    Please suggest
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  • If there is a lock in period in the project ( similar to the Godrej project, being launched shortly in Sector 80, Gurgaon ) , then the builder will not transfer the apartment in the name of the buyer , before the lock in period ends. I understand that Today's recently launched project on the Sohna rd. has a lock in period of 30 % payment ( u cannot transfer , before the original allotte , has made 30 % payment to the builder)

    U need to check on these , before u decide on a property.


    Originally Posted by er_gaurav_garg
    just a quick question on this, in case if we buy in resale there can be a problem that builder won't give NOC to seller (if the project is still under construction or project is still with builder),

    Secondly Builder can ask some good amount of money from the seller and this can jeopardize the deal with the seller.

    Thirdly going forward builder won't entertain you as you haven't bought flat from him

    Actually, i faced similar issues while i was in Pune. I am not very sure whether similar issues can pop up there or not.

    Please suggest
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  • manoja

    what is the transfer process in spire south ? any idea? im looking to buy in resale . what all documents shld i ensure
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  • tinku2007 ,

    Ask the guys who have bought in resale in the relevant Spire , South thread & they would help u out.

    I bought it directly from the company & i am not much aware of the transfer process & documents required for it.
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  • I think in resale you can get a better deal. When you buy from the builder he has a lot of hidden charges like parking, development fees, floor rise, maintainence advance, etc etc. In resale you will not have these hidden charges and just one price.
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  • Almost always buy from the Resale. The deals are better and transparent.

    Buying directly from builder is only when you intend to make short term gains on early booking and then sell off before possession.

    When the project has been launched and under construction, it almost never makes sense to buy from builder.
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  • Originally Posted by AATHAKUR
    I think in resale you can get a better deal. When you buy from the builder he has a lot of hidden charges like parking, development fees, floor rise, maintainence advance, etc etc. In resale you will not have these hidden charges and just one price.


    All these charges would also be there in a resale deal.
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  • Originally Posted by AATHAKUR
    I think in resale you can get a better deal. When you buy from the builder he has a lot of hidden charges like parking, development fees, floor rise, maintainence advance, etc etc. In resale you will not have these hidden charges and just one price.



    generally when you buy in resale you will negotiate and pay less than the builders current price list per sft, but you will still pay all the other charges already paid by seller or in the original BBA as due only benefit is lower per sft cost.

    You have to be very sure and check with the builder that the contract is transferable.
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  • I am referring to resale after 5 or more years of possession. After 5 years the appreciation is so large that the seller will not take into account the parking, development fees, other charges that the builder had charged him. Most sellers will make a lot of profit so will be willing to negotiate. A builder has more negotiation power than a end user because the builder has more finance muscle power that a small end user/investor.
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  • Originally Posted by AATHAKUR
    I am referring to resale after 5 or more years of possession. After 5 years the appreciation is so large that the seller will not take into account the parking, development fees, other charges that the builder had charged him. Most sellers will make a lot of profit so will be willing to negotiate. A builder has more negotiation power than a end user because the builder has more finance muscle power that a small end user/investor.



    If after 5 years or more after possession a builder still has unsold inventory, I will really question the quality of constrution or some other hidden issues and not buy at all.
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  • No not in the same project/building but comparing the resale to new projects in the locality/ area.
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  • Originally Posted by AATHAKUR
    I think in resale you can get a better deal. When you buy from the builder he has a lot of hidden charges like parking, development fees, floor rise, maintainence advance, etc etc. In resale you will not have these hidden charges and just one price.


    Hi
    greetings

    All depends on
    - Disposable income
    - Upfront cash involved
    - Point of Interest specific to the buyer
    - Leverage Situation
    - Quality of construction
    - Rental Value
    - Desperation of Seller
    - Effectiveness of RWA (very few are professionally managed)
    - Security & Maintenance
    - Sale against Registry or GP Attorney (prefer the earlier)
    - Supply in the area and sizes available.
    - Availability of social/public INFRA

    Cheers
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