Important Guidelines for Purchasing an Old Apartment
One of the biggest investments you can make in your lifetime is purchasing a piece of real estate. As a result, you must be absolutely certain of the investment you are making. You can think about purchasing an older apartment if there aren’t many possibilities for newly constructed apartments in the area you’ve chosen. Before making a purchase, there are a few things you should investigate. Continue reading to learn what these are and how to approach your purchase while keeping them in mind.
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Things to Consider Before Purchasing an Old Apartment
When purchasing an older apartment, keep the following in mind.
Financial Capabilities:
The first step in planning to purchase a house is to evaluate your financial situation. This enables you to determine whether you can afford the price of your preferred house while meeting all of your other financial obligations. Make a budget first, factoring in the down payment and the size of the mortgage you’ll need to apply for. Not only that, either. To evaluate interest rates and other benefits, you could also contact different institutions that offer house loans. Afterward, decide which one best suits your financial preferences.
Title Check:
In order to prevent engaging in any unauthorized transactions, you must conduct a title search on the former apartment you have selected. This makes it easier for you to review the property-related data and determine whether the individual who is selling you the old flat actually owns the property or not.
Financial History:
Since the flat is being purchased from an individual rather than a developer, it is essential to look into the unit’s financial history. Recording each and every financial transaction that has occurred is crucial. Additionally, a No Objection Certificate from the relevant bank is necessary if the seller has an open house loan. One must also take into account the cash element, which can occasionally rule in such transactions.
Property Documents:
Purchasing an older flat requires going through a number of time-consuming and laborious legal requirements. It is critical to determine if the seller is the legitimate owner of the property or not, according to Atulay Nehra, Legal & Investment Consultant. All paperwork needs to be correctly registered in the government’s files. “A resale property’s title must be fully specified. Before purchasing an older property, you should have the purchase agreement, sale deed, No Objection Certificate (NOC) from the society, a copy of the builder-buyer agreement, and documentation proving the historical chain of ownership, says Nehra.
Utility Bills/Taxes:
It’s imperative to confirm that there are no energy, water, or property tax arrears before purchasing an older flat. While the builders and the society can check on maintenance, power, and water fees, the revenue department can check on tax obligations.
Maintenance Fees:
Because older apartments have less facility, maintenance fees are generally lower for them. Make sure you carefully read the terms of the maintenance fees you will be required to pay after purchasing the old flat of your choosing. Verify how much you must pay for shared amenities like parking, a swimming pool, a jogging path, a gym, etc. In certain circumstances, older buildings provide these amenities without charge.
Damage to the structure:
Look for signs of moisture intrusion and wall cracks. Important elements like the building’s structure and layout, its walls, fissures, and dampness must be properly inspected. Verify whether the property was built in accordance with the building plan. Also take into account the property’s ongoing renovation costs, such as painting, waterproofing, and structural maintenance.
Ventilation/Lighting:
An apartment with good ventilation and adequate lighting will help you live a healthy life. You should think about purchasing an ancient flat on the top floors if you want to avoid the upkeep problem. This also aids in avoiding the issue of leaks and moisture. “An antique building in an old neighbourhood can suggest nearby high rises. In that circumstance, having adequate lighting and ventilation on the lower floors might be very difficult.
Qualifications for a Mortgage before Purchasing an Old Apartment
A legal & technical verification of the property is required before approving a mortgage for an older apartment. Banks typically limit the amount of a house loan to the property values included in an old apartment’s sale deed. If that occurs in your situation, you may need to make independent arrangements for the sum required to be paid for stamp duty & registration.
The lender determines the amount of a mortgage loan based on a number of factors, including:
Age of the Property:
When reviewing your home loan application, lenders take the age of the property into account. For well-maintained buildings, banks and other financial lenders typically offer a higher loan amount. They compute and subtract the property’s depreciation value from its starting value.
Age of the Applicant:
In India, home loans are only available to those who are older than 18 years old. Based on a person’s financial history and remaining employment years, banks and other financial institutions determine the length of their house loans. You can obtain a larger home loan amount with acceptable interest rates with an excellent credit score.
You must submit the following documentation when requesting a house loan to purchase an older flat.
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Type of Documents |
List of Documents |
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Identity proof |
Aadhaar Card |
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Driver’s Licence |
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Voter ID Card |
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Passport |
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Address proof |
Aadhaar Card |
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Driver’s Licence |
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Electricity Bill |
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Passport |
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Property documents |
Immediate Title Deed |
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Copy of the Sale Deed |
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Copy of Agreement of Sale |
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Property Tax Payment Receipts |
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Chain Documents |
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NOC from the builder |
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NOC from the bank (in case of an active home loan) |
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Copy of an approved building plan |
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Non-Encumbrance Certificates |
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Employment Verification Documents |
For Salaried Employees: Copy of Appointment Letter and Pay Slips for the last three months |
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Proof of income, such as bank statements, for self-employed company owners |
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Income Verification Documents |
Bank account statements for the last six months |
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Copy of PAN Card |
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Income tax returns documents for the last three years |
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Passport-Size Photographs |
Keep 2-4 passport-size photographs handy when applying for a home loan |
Important Pointers for Buying an Older Property
- Before making a purchase, consider all of your options.
- Investigate the seller’s ownership rights legally.
- Ensure that all fees and invoices associated with the chosen property have been paid.
- Before requesting a mortgage, compare the interest rates provided by several banks.
- To estimate the EMI payment you could be required to make each month, use our home loan EMI calculator.
- Before making a purchase, double-check all the documentation pertaining to the property.
We hope this article makes it easier for you to effortlessly purchase the vintage apartment of your dreams. Visit our properties section to browse a variety of desirable resale property possibilities and quickly select the one that best meets your needs. Best of luck!
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