Is it a good idea to buy old (17 yrs)second hand apartment in a prime location in Bangalore?

Question

I'm considering buying a second apartment which is 17 yrs old in one of the prime locations in Bangalore. There are no issues with titles and the quality of construction is pretty good. The only thing I'm concerned about is the re-sale value. If at all I have to sell after 10 yrs or so, will it be easy and also will I get some appreciation ? I'm getting this apartment at Rs.2000 less per sq.ft than the prevailing rate.

If any one who has in depth knowledge of real estate please address my query. I would like to know the facts before I go in for it. Thanks in advance.

Answer 1

go ahead and buy immediately property prices keep on going up and hardly ever go down. inabout 10 years time you should get more than 50 % appreciation,

Answer 2

The normal construction in apartments last for 30 to 40 years. But the building is 17 years old and has already got the depreciation.

Please appoint a chartered engineer with specific direction to give you the report on the construction and the market value as on date.  An experienced Engineer, will assess the strength of the building, type of construction and will report you, approximately, how long the building will survive.

Regarding, re sale value, it is very difficult, to come to a decision.  The choice is yours.

The price quoted by you is not cheap. The new apartments in central and prime locations are around Rs3500/- to Rs5000/-.

Let the chartered Engineer value the property, the report will send shock waves to you.

for further details, if you require, please contact:

[e-mail].

Answer 3

hello...firstly go and see the house for your self...see closely each and every wall...see if there is some fresh paint applied..or does some walls have cracks..or any marks of freshly plastered walls...these things would tell you about the problematic aspects of the property...see there is no value for building its only the land that is costly...and this appt being in prome location would surely appreciate...but as the age of the appt is old then what you should do is check if there is any redevlopment plan by the society of the appartmnts as its not just the appartment that you are buying is old...but all others aaswell..but personallly i think this is a good deal...and you should go forward with it...but do keep in mind that after 5 yrs or so you finally would have to get the entire appt refurbished...

Answer 4

Generally the more older the assets, the more one has to spend on maintenance. This might be additional cost which has to be budgeted when a asset close to 20 yrs is purchased.  I remember my house owner who has bought an individual house, had to spent close to 2 lacks, to revamp the electricity wiring as it had lot of problems.  So problems like these can be an element of surprise while older house are purchased.

Also the general outlook on real estate sector is currently not +ive, due to increase in house loan interest rates and other factors.

Otherwise, resale value as far as land is considered is expected to appreciate, as you have mentioned that the apartment is in prime location.

Answer 5

yes..