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Advice needed on resale flat buying

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Advice needed on resale flat buying

Last updated: January 18 2011
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  • Advice needed on resale flat buying

    Hi members,

    I have seen a resale flat for residential use and I liked it. But the problem is the property is 12 year old and located on 5th floor. There is no power backup for lift (neither generator or battery backup) so in case if power goes down it could be difficult... How costly could it be to install generator backup if society goes for it in future? What should be price difference between a new flat and a 12-year old flat?

    Please advice.

    M
  • #2

    #2

    Re : Advice needed on resale flat buying

    Which area are you talking about? Answer to your question depends with context of the area because as per my observation there is very little difference in terms of pricing between a new flat and a resale flat . The margin is very low if the resale flat is located in a well maintained society. If you are going for home loan then do consider the loan eligiblity factor as some nationalized bank take age of the property also to calculate loan eligibility.

    One advantage you would get if you with resale flat is , you can avoid most of the hidden charges that you will endup paying for new flat like MSEB charges , Service Tax etc.

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    • #3

      #3

      Re : Advice needed on resale flat buying

      Originally posted by Murtaza_t View Post
      Hi members,

      I have seen a resale flat for residential use and I liked it. But the problem is the property is 12 year old and located on 5th floor. There is no power backup for lift (neither generator or battery backup) so in case if power goes down it could be difficult... How costly could it be to install generator backup if society goes for it in future? What should be price difference between a new flat and a 12-year old flat?

      Please advice.

      M
      Be concerned if it is done via redevelopment route.

      If it is redeveloped society, the be alarmed that, old inhabitants would cause problems accepting newer practices and practicalities.

      It is just not about generator backup, but managing water supply, lift, amenities, maintenance....doing everything associated with expense will be management nightmare with the old inhabitants.

      Comment

      • #4

        #4

        Re : Advice needed on resale flat buying

        Originally posted by suhail_zone View Post
        Which area are you talking about? Answer to your question depends with context of the area because as per my observation there is very little difference in terms of pricing between a new flat and a resale flat . The margin is very low if the resale flat is located in a well maintained society. If you are going for home loan then do consider the loan eligiblity factor as some nationalized bank take age of the property also to calculate loan eligibility.

        One advantage you would get if you with resale flat is , you can avoid most of the hidden charges that you will endup paying for new flat like MSEB charges , Service Tax etc.
        In 8 years, his flat will be 20 yrs old.
        The question to ask is, how much will you pay for a 20 yr old flat if you were in the market for buying?

        Or, to put it another way, if you had an option to buy a 20yr flat for X lakhs, and another newly constructed flat for X+2 lakhs, would you pay the extra 2 lakhs.

        If your answer is yes, keep increasing the 2lakh amount until you reach your threshold limit for paying extra, and you have your answer how much the price should drop.

        Of course, this is only a desi way. The proper way to do this is to calculate the price using a depreciation formula or depreciation curve. This is how an actuary would probably calculate the depreciated price of an apartment flat (although I am no expert in this area).

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