Fresh Booking vs. Resale: A Comprehensive Comparison

Bricksnwall Trusted Experts

Buying a home is a significant decision. Especially when it comes to choosing between fresh booking and resale properties. Making an informed decision might be made easier if you are aware of the variations between these possibilities. So, let's dive into this informative blog of ours covering this major topic. 

Advantages of Fresh Booking:

Flexible Payment Plans:

Fresh booking of under-construction units offers customized payment plans. The same can be a construction-linked plan, making it easier for you to manage payments. 

Brand-New Property:

Fresh units are new and unused, ensuring you won't have to worry about issues. There might be a wide range of issues like chipping paint or nail holes. You can even make changes to the unit from scratch according to your preferences.

RERA Protection:

The implementation of RERA played a big role. The Real Estate Regulatory Authority on 1 May 2017 made a change for all under-construction and new units. The change made it obligatory for them to get registered. This ensures transparency and safeguards your interests in case of delays. Even if there are defaults made by the developer.

Advantages of Resale :

Negotiation Power:

During a market slowdown, the resale market offers the opportunity for negotiation. Ultimately, leading to significant discounts. This is because investors or sellers might want to exit the market quickly.

Ready-to-Move Options:

Resale properties often include ready-to-move options. In turn, allowing you to occupy the property within a few months after purchase.

Disadvantages of Fresh Booking:

Delayed Possession Risk:

One downside of fresh booking is the risk of delayed possession. In case of project delays, you might end up paying both the home loan EMIs and rent simultaneously.

GST on Total Property Cost:

Buying a property in the primary market attracts Goods and Services Tax (GST). As we all know GST is different for all but here it is five percent of the total cost. The only thing is that it does not apply to ready-resale properties.

Disadvantages of Resale:

Lump-Sum Payment:

Resale properties usually need a lump-sum payment or a few installments. That too over a short period. As a result, there might be instances where it gets challenging for you to arrange immediately.

Additional Broker Fee:

Involving a broker in a resale deal could mean extra expenses. The reason being they usually charge a fee of 1-2 percent of the total transaction value. 

RERA Exclusion:

Older properties with an Occupation Certificate issued before May 1, 2017, are not covered under RERA. Thus, making them a riskier real estate investment.

Potential Transfer Fee:

Some developers charge a transfer fee on the resale of a property, adding to the overall cost.

In conclusion, choosing between fresh booking and resale properties requires careful consideration. Take into consideration both the advantages and disadvantages of each option. Fresh booking might be your best choice. Especially if you prefer a brand-new home with customized payment plans and RERA protection.  On the other hand, if you seek negotiation opportunities, ready-to-move options, and potentially lower costs, the resale market could be more suitable. Weigh your options wisely to make a well-informed decision for your future home.