Skip to main content

Should I Buy a New Home or an Old Home?

Many buyers feel the dilemma that buying an old home is better as it has already been fetching rent and could be headed for further appreciation. But this is not always true. Property appreciation may slow down after 10 years of construction and in some cases property may start depreciating. Buying a New home always makes more sense if it is from a quality builder like CMRS Group which is appropriately priced. If you buy a New Home from an over marketed builder after the launch, you risk the expected appreciation.

A new property will last you through a full property cycle of 15 years or more with extremely minor maintenance issues and virtually none in the first 10, provided that you chose a property by a builder like CMRS Group with a good track record. 

 Problems in Buying an Old Home:
  1. Legal Challenges : Property title may be unclear due to lack of proper chain of documentation, especially in cases where the property has changed hands more than a couple of times in the past. 
  2. Higher Stamp Duty : If the proper registration is not done then registering put the onus of paying the stamp duty in arrears on the buyer. T
  3. Higher Maintenance : You may need to spend significantly in renovation and repairs to masonry, plumbing, electrical wiring and fittings. 
  4. No support for Home Loan : Obtaining a home loan for a property which is very old could be a daunting task.
Benefits of Buying a New Home:
  1. Lower Price : New Homes are priced lower than Older homes as old homes have multiple owners and each one of them would have paid registration charges. In an Old home, all such accumulated charges would be expected from the next buyer. The price of New Home is a fair price to pay for peace of mind and a superior, more desirable property.
  2. Vastu : You can choose a New home as per your Vastu perference since multiple options would be available in the same building.
  3. Low Maintenance : As all the fixtures are new, they hold up better than those of Old homes, which may have experienced years of use/misuse.
  4. Flexibility : Many Builders like CMRS Group allow you to make some changes in your under construction property (without violating the by-laws), which helps create a home suited for your own taste. New-home buyers can often decide where their bathroom fittings, choose their flooring or pick the interior paint colour.
  5. Modern Outlook : A New Home will have better facilities and amenities with the advancement in technology and change in taste. You can expect next buyer much quickly for a New Home compared to an Old Home.
The Only advantage of going in for an Old property like flat is to buy a home in a strategic location where no new supply is coming in, but Builders like CMRS Group provide such advantage even for New Properties. CMRS Sai Flora, CMRS North Star and CMRS Oasis are the examples of flats which are available in areas where demand is huge but the supply is limited due to unavailability of vacant land. You are Guaranteed to have unexpected price appreciation.

 For any property advice, free legal advice and any other assistance while buying a property, feel free to call at  +91-7676-122-000 or send an mail to info@cmrsproperties.com
Labels:

Popular posts from this blog

Buy or Rent, What should you do?

The choice between buying a home and renting one is among the biggest financial decisions that many people in bigger cities need to make. But the costs of buying a home scares many people off when they compare the EMI with their current salary. It may not be always true as with the tax benefits your effective in hand salary increases and your balance salary after EMI instead of rent does not reduce much. Also the decision to buy becomes easier if you choose to buy from CMRS Group, which offers CMRS Royal Orchid, luxury smart, green homes starting from 33 lacs and give the possession to you in little more than a year.



Buying Cost
Initial costsare the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and other fees.Recurring costsare expenses you will have to pay monthly or yearly in owning your home. These include EMI payments, maintenance and renovation costs, property taxes and homeowner’s insurance. Property taxes, the interest …
Read more

Row Villas are a New Fashion in Bangalore Realty?

Villas continue to be a dream home for many, but they remain pricey at good locations. People choose to buy high end apartments instead, but Bangaloreans are queuing up to buy Row Villas which are located at premium locations and costs the same or lesser than high end apartments.  For example, CMRS Couryard (http://cmrsproperties.com/views/courtyard.html), located at Varthur main market near Forum Value Mall is a big hit among buyers. 

Row houses Properties come in the category of urban homes, which are located in the same area and are coherent with each other in architecture, design, and appearance. Row villas are premium segment of row houses. The row houses segment, though less in the overall market size, saw the highest increase in sales velocity in Bangalore with a rise of 23 per cent and only 9.4 months inventory. A clear indication of the growing demand for this type of property.
Advantages of Row Villas: Costs less than villas with private gardens providing the higher luxury for p…
Read more

Occupation Certificate (OC), the Hot Item which is rarely SERVED by Builders

Do you know the BDA had sanctioned the building plan and issued CC and OC for Mantri Tranquil project, but BESCOM disconnected the electricity finding the violations?

The reason, the BDA ignored the fact that the project was within BBMP limits and that the two blocks of the Mantri Tranquil were built on the storm water drain! The fact remains that the property buyers don't know the importance and meaning of occupation certificate in its true sense. This information asymmetry allows a builder to take customers for a ride.




It can be assumed and granted that the small budget homes will be made with little deviations and occupation certificate for the same should not be expected. Such homes have to wait for akarma sakarma to pay the penalty and regularise the construction to get the occupation certificate.

But how can you forgive the builders, who charge upwards of 75 lacs and do not provide valid and appropriate occupancy certificate?

Without OC, the building is technically unfit for occ…
Post a Comment
Read more