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Is it worth buying an old house

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Amit Shanbaug, ET Bureau: When Rita Dey and her husband started window shopping for a house in Mumbai, they were in two minds. Should they buy in the far-flung, but affordable, Thane suburb, where lots of new projects were coming up? Or should they opt for an apartment in an expensive project in the city? Ultimately, the couple junked both the options and settled for a flat in an existing residential society at Vashi. It wasn't too far and the Rs 45 lakh price fitted into their budget. "It was a resale property, so there was no premium tag," says Dey.

However, not everyone can take the resale route when it comes to buying property. Sometimes it is the demand for the cash component that prevents the deal from being finalised. Salaried people usually don't have 'black' money and banks are not willing to lend more than the amount mentioned in the sale deed. Besides, the elaborate legal formalities and paperwork involved in buying a resale property can be intimidating. Also, the title of a resale property is not always as clearly defined as that for a fresh allotment in a new project.

Read the full article from Economic Times

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