by Anushree Ghosh,
Tips to Buy A Second-hand Property
Real Estate has been struggling to swim through the state of stagnancy for quite some years now, but in spite of several attempts on the part of the government and the investors, there have been no improvements. Therefore, the current situation can be extremely beneficial to the buyers to purchase properties for investment or living purposes. It becomes fairly easy to opt for a new property where every fitting and connection is recently done and one doesn’t need to dig into the cost of maintenance. But, in case of buying a second-hand property, the pre-purchase checklist becomes longer.
One of the most important things to ponder before making an investment in the second-hand property is to find out the locational advantage of it. The rate of the chosen area must increase in the future. Doing an in-depth analysis of the property value and the rate of inflation in respect to your future plans would a great step to start with. Before assessing your budget also check the developmental plan of the place – nearby road development, registration rates, if it falls under a specified zone and the local area developmental plans.
Here are the points to consider before purchasing a second-hand property:
Budget: Thoroughly plan and come out with a cumulative sum of all the possible costs; transfer cost, broker fees, taxes, the rate of the loan (if any), total property cost and margin of negotiation. At last, add the considerable miscellaneous amount also.
Study the Property History: Knowing the current owner of the property does not solve the purpose. But, trace the transfer of property, starting from its existence. Hire a lawyer who could help you understand the nitty-gritty of the property in question. If there would have been a dispute or fraud at any point in time, then one must know before investing. Also, all the dues must be paid by the former owner before you take possession.
Loan For Buying Second Hand House: One of the main advantages of buying a property through a home loan is the thorough check of all the documents by the bank officials.
Architectural Survey: Hire an architect or engineer to check the property physically and its surroundings along with the area map. This will help you to foresee any issues that could arise due to architectural defects like ventilation, proneness to earthquake and floods, overflowing sewage, etc.
Check Services: Before investing on the property, one should also check the services linked to the property, like water supply, working electrical points, lifts, swimming pool, shops in the vicinity, etc. Otherwise, it would a daily struggle to make the house livable.
After checking the above-mentioned points, assess the probabilities of an extension that could add value to the property. This would help you earn better if you wish to rent it out or put for resale.