For the past few months, I am on the ground hunting for a flat. I was looking for resale homes, on affordability constraints. So based on my experience, interactions with people in market, below can be kept in mind, while buying resale or old houses.
1) In metros like Chennai, Bangalore etc., due to high cost, it is justifiable to buy resale or old houses for investment or for living.
2) It is advisable to buy houses which are less than 15 years old. Never go for houses which are more than 20 years old.The brokers used to deviate you by saying more UDS, attractive amenities, location stories, pressuring you to buy. Dont go by their words.
3) Regarding pricing, how to evaluate or fix a price for the flat, which is reasonable. Based on strength of construction, how it is maintained, proximity to important location and accessibility, fix a price. For a house, which is less than 5 years old, you can quote 15 – 20% less than the market rate, for new house. Houses which are between 5 – 10 years old, you can quote 30% discounted rate with the market rates. For houses, which are more than 15 years old, ask 40% discount. Houses which are more than 20 years, dont buy. take it if it comes free! (and tell me that route😊)
4) People mostly buy through home loans from various banks, so check with banks about documents legality and verify. See all original documents and check EC.
5) Out of total buyers, 15 – 25% of people buy resale or old houses in the market.
6) Before buying a house, keep 50% of money as cash and go loan only for the balance money. This is the best way to handle life and finance. I have seen many of my friends, buying expensive homes but dont have basic furniture in their house, struggle to make ends meet, after paying huge EMI.
Happy and be wise !