Fresh Bookings or Resale Homes – What’s Right for You?

Are you at a crossroads, contemplating whether to embark on the journey of home ownership through a fresh booking with a developer or opt for a resale property? The decision is pivotal, demanding careful consideration of various factors. At VBVR, we understand the complexities of this choice, and to assist you, we’ve compiled a detailed guide on the advantages and disadvantages of both fresh booking (primary market) and resale properties (secondary market).

Fresh Booking (Primary Market):

• Customized Payment Plans:
  • Under-construction units offer customizable payment plans, with the construction-linked plan being a popular choice. This flexibility in payment is a significant advantage.
• Brand-New, Customizable Homes:
  • Since the unit is fresh and unused, you have the freedom to customize it from scratch, avoiding concerns about chipping paint or pre-existing nail holes.
• RERA Compliance:
  • Post the implementation of RERA on May 1, 2017, all under-construction and new units are mandated to be registered. This ensures transparency and protection of buyers’ interests in case of delays or defaults.

Resale (Secondary Market):

• Negotiation Power:
  • During market slowdowns, the secondary market offers negotiation power. Sellers may provide attractive discounts, benefiting both investors and genuine buyers.
• Ready-to-Move Options:
  • Resale properties often include ready-to-move options, allowing you to acquire a property close to possession and occupy it within a few months.

Disadvantages:

Fresh Booking (Primary Market):

• Delayed Possession Risks:
  • The risk of delayed possession exists, despite RERA safeguards. In such cases, homebuyers might find themselves paying both EMI and rent.
• GST Implication:
  • A GST of five percent is applicable to fresh bookings, adding to the overall cost. This is not the case with ready resale properties.

Resale (Secondary Market):

• Lump-Sum Payments:
  • The secondary market often requires lump-sum payments or a few installments over a short period, posing a challenge for buyers who may find arranging an immediate hefty down payment difficult.
• Brokerage Costs:
  • Involvement of a broker in a resale deal could lead to additional expenditures, with fees ranging from 1-2 percent of the total transaction value.
• Exclusion from RERA for Older Properties:
  • Older properties with an Occupation Certificate before May 1, 2017, are excluded from RERA’s ambit, making them a potentially risky investment.
• Transfer Fees:
  • Some developers charge a transfer fee on resale transactions, ranging between Rs 200-1000 per sq ft.

Comparison Table:

Conclusion:

In conclusion, the choice between fresh booking and resale depends on various factors, including your preferences, financial situation, and market conditions. We strongly advise consulting local property experts, conducting thorough market research, and considering your individual needs before making this significant investment decision.

If you need guidance or assistance in navigating the real estate landscape, the VBVR team is here to help. Contact us for expert advice tailored to your unique requirements, ensuring a well-informed and smooth property investment journey. Remember, your dream home is just a thoughtful decision away!