When Varun (name changed) and his wife were trying to zero in on a house in Visakhapatnam, they were in two minds: should they buy one in a far-flung but affordable area or shell out their savings for an apartment in the city?
The couple ditched both options and opted for a resale flat in Madhurawada. It wasn’t too far from their workplace and the Rs 35 lakh price was economical for them. They killed two birds with one stone.
Are you the one who eyes an affordable spacious flat in the City of Destiny, The New Indian Express’s ‘Realty Check’ got you covered.
Resale homes are indeed a lucrative option for those who have a limited budget. However, the legality and paperwork formalities involved in purchasing a resale property intimidate many. So, if you are planning to buy a secondhand home, realty experts say, you need to make sure you are in safe hands. For that, it is important to understand all the legal formalities.
"At present, prices of resale flats are ranging between Rs 30 lakh to Rs 80 lakh and more in the city’s locations like Madhurawada, Kancharapalem, Kurmannapalem, and Gajuwaka. From an Independent double-storey house on 240 sq yard plot priced around Rs 1.05 crore in Gajuwaka to a 2-bhk ready-to-move apartment priced around Rs 45 lakh in Akkayyapalem area, second-hand home buyers have a plenty of options to choose from," says CREDAI general secretary Subhash Chandra Bose.
“The prices vary depending on the location, structure of the house, its condition and the sellers’ requirements. But the affordability factor is very much there with every kind of second-hand home,” he said, adding that it’s a win-win situation for both the buyer and the seller. He said opting for an old house in the city is seemingly more beneficial than purchasing a new one away from the city for those who have budget constraints.
The base prices of resale homes start from Rs 50,000 to Rs 1 lakh per square yard in affordable areas of the city, and a resale flat’s base price is around Rs 3,000 - Rs 5,000 per sq ft in such areas. Explaining the legal formalities while buying an old house, he said a nod from both the legal advisor and a technical advisor is a must before going ahead, and one cannot sell his/her house if any document fails to abide by the rules and regulations. This offers much-needed security to the second-hand buyer, he said.
“Despite there being so many documents to check before buying, it actually takes less time than it takes while purchasing a new one. Original sale deeds, property tax, municipal clearances, and completion certificate are among several other important documents required from the owner before buying a second-hand home,’’ he said, adding that a letter with the year of construction, its built-up area, and other such details are also vital depending on the type of the house.
“The buyers should check all these documents carefully and get the nod of a legal advisor before purchasing. A legal advisor and a technical advisor are always there to help a second-hand buyer. So, there is no need to worry,” he noted. One of the basic documents you need to check is a purchase agreement, which names the current owner, Raju, a realtor from Visakhapatnam, said.