Choosing Between New and Resale Properties: Advantages & Disadvantages

Are you planning to buy a home but are unsure whether to book a new property or opt for a resale house? Purchasing real estate is a major decision that requires careful consideration of multiple factors. Both fresh and resale properties come with their own set of advantages and drawbacks. 99acres highlights the pros and cons of each to help you make a well-informed choice.

Buying a home isn’t simple, and deciding whom to buy from is as crucial as timing your purchase. When booking a property, you generally have two options: buying a new unit directly from a developer (primary market) or purchasing an existing property from an owner (secondary market). Understanding the nuances of each option is key to making the right decision.

Advantages

Fresh Booking (Primary Market)

• Flexible Payment Plans: Under-construction properties often allow buyers to pay in stages through options like construction-linked plans, easing financial pressure.
• Brand-New Unit: You won’t have to deal with chipped paint, damaged fittings, or old interiors. Plus, you can personalize the unit according to your preferences.
• RERA Protection: Since May 1, 2017, all new and under-construction properties are required to be registered under RERA, ensuring transparency and safeguarding buyer interests in case of delays or defaults by developers.

Resale (Secondary Market)

• Negotiation Opportunities: During market slowdowns, sellers may offer significant discounts. Both investors and genuine owners may lower prices to expedite sales.
• Immediate Possession: Resale properties are usually ready-to-move-in, allowing you to occupy the house quickly without waiting for construction to complete.

Disadvantages

Fresh Booking (Primary Market)

• Possession Delays: Construction delays may occur, meaning you might end up paying both EMIs and rent simultaneously.
• GST Charges: New properties attract a Goods and Services Tax (GST) of 5% on the total cost, which is not applicable to ready-to-move resale properties.

Resale (Secondary Market)

• Large Upfront Payment: Resale transactions usually require lump-sum payments or short-term installments, which may be challenging to arrange.
• Broker Fees: Involving a broker can add 1–2% of the total property value as extra cost.
• Limited RERA Protection: Properties with an Occupation Certificate issued before May 1, 2017, are not covered under RERA, making them potentially riskier investments.
• Transfer Fee: Some developers levy a transfer fee when ownership is transferred from the first buyer to a new owner, typically ranging from Rs 200–1000 per sq. ft.

Quick Comparison

Before making any real estate investment, it’s strongly recommended to consult a local property expert and conduct thorough market research to ensure an informed decision.