Key Tips for Buying an Old Apartment in Bangalore

 

Buying a property in Bangalore is one of the biggest investments that you can make in your lifetime. Hence, you need to be completely sure of what you are putting your money into. If there are limited newly-built apartment options in your chosen locality, you can consider buying an old apartment. However, there are a few things that you need to check before making a purchase. Keep reading to know what these things are and how you can proceed with your purchase, keeping them in mind. 

Things to Consider When Buying an Old Apartment

When you're considering buying an old apartment, there are several important factors to keep in mind:

1. Financial Capabilities

Before anything else, assess your finances to ensure you can afford the property. Create a budget that includes the down payment and any necessary home loans. Compare interest rates from different banks to choose the one that suits your financial situation best.

2. Title Check

Perform a title search to confirm that the seller has rightful ownership of the property. This step ensures you won't encounter unauthorized transactions.

3. Financial History

Since you're buying from an individual, check the apartment's financial history. Keep track of all past transactions, and if the seller has an active home loan, get a No Objection Certificate from the bank. Be aware of any cash components in the deal.

4. Property Documents

Don't skip the paperwork. Ensure all documents are properly registered in government records. Key documents include the purchase agreement, sale deed, No Objection Certificate (NOC) from the society, and ownership chain records.

5. Utility Bills/Taxes

Check for outstanding dues in electricity, water, and property taxes. The builder or society can help with maintenance, electricity, and water dues, while the revenue department handles taxes.

6. Maintenance Charges

Old apartments often have lower maintenance charges due to fewer amenities. Examine the conditions and costs for common amenities like lifts, parking, swimming pools, jogging tracks, and gyms. In some cases, these amenities may be free in older buildings.

Eligibility for Home Loan with an Old Apartment

Getting a home loan for an old apartment involves legal and technical property verification. Lenders base the loan amount on various factors:

1. Age of the Property

Well-maintained properties often qualify for higher loan amounts. Lenders may also deduct depreciation from the property's initial value.

2. Age of the Applicant

Applicants over 18 years old can apply for a home loan in India. Loan tenure depends on an individual's financial record and remaining work years. A good credit score can help secure a higher loan amount with reasonable interest rates.

Additional Tips for Buying an Old Property

Here are some extra tips for Bangalore apartments to ensure a smooth purchase:

1. Explore Your Options

Don't rush; explore all your options before making a decision.

2. Legal Ownership Check

Always verify the seller's ownership rights.

3. Clear Outstanding Dues/Bills

Ensure all property-related bills and dues are paid.

4. Compare Bank Interest Rates

Compare interest rates from different banks before applying for a home loan.

5. Use EMI Calculator

Use a home loan EMI calculator to estimate your monthly payments.

6. Thorough Document Check

Double-check all property-related documents before finalizing the purchase.

In Conclusion

We hope these tips help you purchase your ideal old apartment without any hassles. Check our property listings for a wide range of resale options and find the one that suits you best. Good luck!