Should you buy an apartment on the secondary market?
When purchasing real estate, the first decision people need to make is whether to go for a new build or a property on the secondary market. Neither option is inherently better than the other; both have their own advantages and disadvantages. That’s why it’s crucial to carefully weigh the pros and cons of each to determine which one best fits your needs. After all, everyone has their own unique requirements when it comes to choosing their future home.
Advantages of buying a resale property
Let’s start by looking at the key benefits of buying a resale property and see whether these advantages are exclusive to the secondary market or if new developments can offer similar perks.
Fans of resale properties typically point to the following advantages:
Immediate move-in after purchase
While it may seem like you can move into a resale property right after buying it, in reality, that’s not always the case. Sellers usually live in the property themselves, meaning they need time to buy a new home and move out. As a result, it’s common for contracts to include a few months for the current owners to vacate the apartment.
However, there are cases where sellers are in a rush to sell, allowing buyers to get the keys immediately after signing the contract. In any case, waiting a couple of months is still much shorter than waiting for a new building to be completed, which can sometimes take years. This makes it a significant advantage of buying a resale property.
Established neighborhood and developed infrastructure
When buying an apartment in a new development, there’s a chance that construction in other phases of the project will still be ongoing after your block is finished. Living near an active construction site brings its own set of challenges, like noise and construction debris in the area. Additionally, many new developments are located in areas with underdeveloped infrastructure.
By contrast, you can opt for an apartment in a fully completed residential complex where the surroundings are already established, and you won’t have to endure the discomfort of nearby construction. However, it’s important to note that apartments in these completed developments tend to be more expensive than those in earlier phases. The decision comes down to whether you value saving money or enjoying a more comfortable living environment right away.
Another consideration when buying resale property is that you won’t be able to purchase an additional parking space. Older buildings often don’t have parking at all, so it’s important to think about this ahead of time.
Competitive prices
If you’re looking for a more affordable option, the secondary market offers a wider variety of choices. In cities like Tbilisi and Batumi, thousands of real estate listings are available. However, it’s important to remember that lower prices usually come with certain trade-offs, and often for good reasons. For example:
- The apartment may be in poor condition, meaning you’ll need to invest in renovations. The money saved on the purchase will likely be spent on repairs.
- There may be maintenance issues, such as problems with heating, water supply, and more.
- Difficult neighbors could be part of the reason why the owner is eager to sell at a lower price.
It’s also worth considering market demand. Small, one-bedroom apartments are particularly popular, so their prices can sometimes be higher than similar new-build options. The same can apply to two-bedroom units.
Disadvantages of resale properties
Now, let’s take a closer look at the downsides of resale properties and see how significant they really are.
Hidden issues
These issues often revolve around repairs and neighbors. While we’ve already touched on neighbors, let’s take a closer look at repairs.
It’s common for owners to do some cosmetic fixes before putting their property up for sale. However, these repairs are often not of the highest quality.
For buyers planning a full renovation, this isn’t much of a concern. In fact, pricier apartments with fresh but superficial repairs are unlikely to interest those planning major remodeling.
However, if you’re looking to move in immediately and live comfortably, well-done repairs are essential. At first glance, everything might appear neat, but problems can arise after just a few months. For instance, wallpaper might start peeling, revealing mold underneath.
Unpleasant surprises can appear in any property, but top-floor apartments deserve special attention. They’re often sold at a lower price for good reason. Along with the usual issues like wiring and plumbing, these units carry the risk of roof leaks. The problem may not be evident in summer, but autumn rains can quickly reveal flaws in the roof.
Potential issues with resale properties
A resale property comes with a history, so it’s essential to ensure there are no hidden issues tied to its past.
Here’s what to check when buying a resale apartment:
- Liens or mortgages: Make sure the property is not under any legal restrictions or mortgages. You can buy a mortgaged property, but the seller must disclose this in advance and follow proper sale procedures. If the seller tries to hide this, it’s a red flag, and you should avoid dealing with them.
- Outstanding utility bills: Check that there are no unpaid utility bills. While you can agree to take on any debts, in such cases, it would be fair for the seller to reduce the price.
- Registered residents: Ensure that there are no individuals registered in the apartment who are protected by law from eviction. Overlooking this could lead to lengthy legal disputes if the residents refuse to leave.
For these reasons, it’s vital to thoroughly check the legal status of a resale property before purchasing.
Limited options
When looking at resale properties, you might often come across:
- Small apartments
- Awkward layouts that aren’t easy to fix
- Outdated heating systems that can’t be replaced with modern alternatives
- Deteriorating or even hazardous conditions.
However, it’s important to note that resale properties don’t always mean old buildings. You can find apartments in newer residential complexes as well. But keep in mind that many of these were originally bought for resale, so the prices are often higher than those from the developer.
Mortgage challenges
Getting a mortgage for a resale property can be more complicated. Yes, banks do offer mortgage programs for the secondary market, but when buying a new apartment from a developer, you can often find much better terms thanks to partnerships between the developer and the bank.
Which is better: new or resale property?
As you can see, there are both advantages and disadvantages to buying resale properties. The choice ultimately depends on your preferences. Carefully weigh the pros and cons, assess the risks, and think about what best suits your needs. You can also browse suitable listings on korter.ge. Choosing the right property can be a key factor in ensuring your future comfort, so take your time and give this decision the attention it deserves.
