In our country, buying a home is nothing short of a dream for most people. Especially in metropolitan cities, life's savings are spent on acquiring a small flat, and even then, there's no guarantee that it will fulfill one's dreams.
Renowned finfluencer and Wisdom Hatch founder Akshat Srivastava suggests that homebuyers are overpaying for new apartments when more affordable and sensible choices are right in front of them. It's better to steer clear of newly built homes and consider older ones, as construction costs are escalating and builders are inflating prices.
Akshat Srivastava elaborated that builders are charging exorbitant prices for their flats and homes. You might say they are making money unethically, and there's some truth to that. However, on the flip side, the cost of building homes has increased significantly, prompting them to raise prices.
Building materials like cement, steel, and labor costs are rising by 10-12% annually, thus forcing builders to hike their prices to accommodate these additional expenses. They have to estimate costs increasing by 30-40% by the project's completion.
The result is that new homes are priced considerably higher, while older resale units, evaluated at current market value, offer better deals, more space, and quicker possession. If you're looking to buy a home to live in, choosing an older house is wiser.
Read more: Solving Delhi-NCR's water crisis from high-rise buildings to colonies?
Further reading: Amrapali Adarsh Awas Yojana becomes a headache! The dream of owning a home in Greater Noida West remains unfulfilled.
Analysis shows a steady increase in construction expenses, affecting market trends.
