HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

Should you buy a new apart­ment or one on re­sale? There ap­pears to be no easy an­swer to this ques­tion. Peo­ple buy re­sale flats in­stead of new ones for var­i­ous rea­sons. Some­times, a cer­tain lo­ca­tion just does not of­fer suit­able op­tions in the pri­mary mar­ket.

At other times, buy­ers do not do enough re­search and are un­aware of the avail­abil­ity of very good new projects. They also suc­cumb to the pres­sure tac­tics of per­sis­tent real es­tate bro­kers and buy re­sale flats even when new apart­ments are avail­able in an ex­cel­lent lo­ca­tion, and within their fi­nan­cial reach. Many buy­ers be­lieve that a ser­vice­able flat avail­able at a slightly lower price is al­ways a good bar­gain.

Most of­ten, peo­ple buy re­sale flats be­cause they are in a hurry for im­me­di­ate pos­ses­sion and are not will­ing to opt for a flat in a project which is un­der con­struc­tion, even if com­ple­tion and pos­ses­sion are only a few months in the fu­ture.

Be­cause real es­tate is an em­i­nently re­sal­able as­set, many Flats in new projects by good de­vel­op­ers tend to be more en­ergy-ef­fi­cient, en­vi­ron­men­tally com­pli­ant, user-friendly and space op­ti­mised. As­sum­ing that one has bought it from a rep­utable de­vel­oper, a first-sale flat has newer fixtures and fit­tings that come with a min­i­mum guar­an­tee of prob­lem-free per­for­mance

peo­ple put per­fectly ac­cept­able flats on the mar­ket af­ter a few years of use be­cause they want to up­grade. This fact makes the mar­ket for re­sale flats al­most as big as the pri­mary mar­ket. How­ever, this does not mean that re­sale flats and new apart­ments fall in the same value chain.

As­sum­ing that a buyer learns of both new and re­sale op­tions in the lo­ca­tion of choice, it is im­por­tant to un­der­stand the ben­e­fits of opt­ing for the for­mer: A home, both as an as­set and a pos­ses­sion, is very much like a car - nei­ther of­fers the same value or ex­pe­ri­ence when it is sec­ond-hand. The feel of a used home or car can­not iPhone can­not per­form with the same speed, ef­fi­ciency and re­li­a­bil­ity as a first-gen­er­a­tion one.

Flats in new projects by good de­vel­op­ers tend to be more en­ergy- ef­fi­cient, en­vi­ron­men­tally com­pli­ant, user­friendly and space op­ti­mised. Rep­utable de­vel­op­ers are like doc­tors - they are con­stantly up­grad­ing their knowl­edge, tech­niques and equip­ment. They do this to re­main rel­e­vant and com­pet­i­tive in a mar­ket which they know to be re­plete with other op­tions for buy­ers. The ben­e­fits of this mind-set are di­rectly passed on to the buy­ers.

It is very dif­fi­cult - if not im­pos­si­ble - to paint a unique mas­ter­piece on a used can­vas. Pre­vi­ous owners of a re­sale flat al­ways leave a cer­tain in­deli­ble part of their per­son­al­ity or cul­ture im­printed on the prop­erty. While it is pos­si­ble to fill in and paint over nail holes in un­wanted parts of the wall, un­do­ing se­ri­ous struc­tural mod­i­fi­ca­tions is a chal­lenge.

New flats in un­der-con­struc­tion and some­times even ready- to- move- in projects can, in fact, be cheaper than re­sale flats. In the case of un­der-con­struc­tion projects, the sale value of in­di­vid­ual units rises only in tan­dem with the stages of com­ple­tion. But re­sale flats of­ten cost as much as (if not more than) new apart­ments be­cause the rel­a­tive cost of orig­i­nal acquisition was higher. This is be­cause of ob­so­lete con­struc­tion meth­ods, which are costlier and more waste­ful than more evolved con­struc­tion tech­nolo­gies.

New flats have higher re­sale value and also longer shelf-life on the re­sale mar­ket be­cause of the lower age of the build­ing.

Home pur­chase is never a de­ci­sion one should make in a hurry. Also, re­gard­less of whether a new flat is slightly cheaper or marginally costlier than a re­sale apart­ment, it should not be made solely on the con­sid­er­a­tion of bud­get. Few in­vest­ment de­ci­sions have as many long-term fi­nan­cial im­pli­ca­tions and ap­pre­ci­a­tion po­ten­tial as prop­erty pur­chase.

It is, there­fore, im­por­tant to un­der­stand the pros and cons of old ver­sus new flats, and to al­ways take an in­formed call when it comes to buy­ing a home.


Ac­cord­ing to the Chi­nese Lu­nar cal­en­dar, your zo­diac sign is Rat if you were born af­ter Fe­bru­ary 4 in the fol­low­ing years: 1900, 1912, 1924, 1936, 1948, 1960, 1972, 1984, 1996, 2008.(If your birth­day is be­fore Fe­bru­ary 4, then your astro­log­i­cal sign is Pig, not Rat)

Sheep stay out in broad day­light whereas the Rat hides in dingy nooks and cor­ners. The Sheep does not wel­come the Rat and they hardly share an ami­able re­la­tion­ship. Ob­sta­cles and chal­lenges mul­ti­ply in 2015 so put in the nec­es­sary hours and lower your ex­pec­ta­tions. You can al­way travel, make merry and ‘play’ in the next few years. So hold on tight and bide your time till 2016, the year of the Mon­key.

Ca­reer: Im­pro­vise and strate­gise your ca­reer plans but only launch them in 2016 - The year of the Mon­key. Be­ware of the gos­sip mills and ma­li­cious co­work­ers who in­tend to tar­nish your rep­u­ta­tion. Your urge to so­cialise will be high this year, but be pru­dent in your as­so­ci­a­tions. Com­mu­ni­ca­tion is the key to avoid quar­rels and build your rep­u­ta­tion. Keep a low pro­file and cen­tre within.

Money: Bonuses, an un­ex­pected help­ing hand, an out of turn pro­mo­tion is fore­seen. At the very least your ef­forts will Ac­cord­ing to the Chi­nese Lu­nar cal­en­dar, your zo­diac sign is Ox if you were born af­ter Fe­bru­ary 4 in the fol­low­ing years: 1901, 1913, 1925, 1937, 1949, 1961, 1973, 1985, 1997, 2009. (If your birth­day is be­fore Fe­bru­ary 4, then your astro­log­i­cal sign is Rat not Ox)

Al­though Sheep and Ox both live in farms and are her­bi­vores of mild dis­po­si­tion they keep their dis­tance and ‘mark their ter­ri­tory’. De­spite com­mon­al­i­ties the two share a ‘fight­ing re­la­tion­ship’. Thus, this is the time to re­cover and wind down from the bumpy and chaotic Horse year.

The Ox is a strong willed and strong headed an­i­mal. The key to tri­umph over un­ex­pected chal­lenges and changes in 2015


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