With Bangladesh’s population on the rise, apartment buildings have become increasingly crowded throughout the city, occupying any available open space. The influx of migrants to the capital in search of better living conditions only exacerbates the issue, leaving little room for new apartment construction. This might let you turn to buy used flats in Dhaka as a viable option, but determining the advantages and disadvantages of buying a used flat in Dhaka can be overwhelming. That’s why we’re going to make your task easier by discussing this topic here in this blog.
Advantages of Buying Used Flats
Let’s know what are the advantages of buying a used flat:
Cost-Effective Option
Buying a used flat in Dhaka can be a cost-effective option for those on a tight budget due to lower prices and a larger supply. But it requires research and negotiation. You need to research the market, inspect the flat for damage, negotiate the price with the seller, consider the location’s accessibility and safety, and work with a reputable real estate agent. By doing so, you can find good deals and purchase a flat that meets your needs and budget.
Read also: How to reduce the cost of living in Dhaka
Can be a Profitable Deal
Investing in a used flat in Dhaka can be a wise decision, as they are often sold at a lower rate than the market price, providing you with an opportunity to buy at a discounted rate and potentially earn a profit by selling it later. But the success of the investment depends on factors such as the location, condition, and demand for the flat. You should also be aware of the costs associated with owning a flat, which can eat into the potential profit. With proper research and planning, buying a used flat can be a profitable investment opportunity in Dhaka.
If you want to know, top reason to invest in residential flat? Then read through this article- Why invest residential flat in Bangladesh?
Additional Value for the Cost
Purchasing a used flat in Dhaka can offer advantages such as previously done renovations, adding value to the property, and enhancing the living experience for the new owner. These renovations can also be cost-effective since the cost has already been factored into the price of the flat, which is often lower than the current market price for a new flat. But you should inspect the flat carefully to ensure the renovations have been done correctly and meet the required standards.
Easy Negotiation
Buying a new apartment from developers in Dhaka offers security and assurance, as they are experts in the real estate market and adhere to regulations. They also have established relationships with financial institutions that can help buyers secure financing. Conversely, buying a used flat from individual sellers can result in a great deal as they may be willing to negotiate on the price. But as a buyer, you must do your due diligence to ensure a fair deal since the market for used flats can be unstructured. Ultimately, you should weigh the pros and cons and conduct thorough research before making a decision.
Established Neighborhood
When you purchase a used flat in an established neighborhood, it will provide several benefits such as access to basic amenities, transportation networks, and social connections. This is particularly advantageous for families with children, as schools and medical facilities are easily accessible. But buyers should also be aware of the potential higher property prices and maintenance costs associated with older buildings.
Ready-to-Move-in
If you buy a used flat that is ready to move in that will be advantageous because you can move in immediately, without any delay. Again, a used flat might already be furnished, saving you time and money. But you need to inspect the property thoroughly and be aware of any potential hidden costs before making a purchase.
Disadvantages of Buying Used Flats
Let’s focus on what are the disadvantages of buying a used flat:
Maintenance Cost
You can save money by buying a used flat, but maintenance and repair costs are inevitable. Get a thorough inspection before buying, budget for ongoing maintenance, and address issues promptly. Prioritize repairs based on urgency and severity. Prepare for plumbing, electrical, roofing, and pest problems. With proper preparation and attention, you can enjoy your new home without surprises.
Feeling the Urge to Upgrade
Buying a used flat might require additional costs for upgrades and renovations, and outdated features or appliances may need replacement or repair. A new flat offers more control over design and customization, modern features, warranties, and guarantees against unexpected expenses. Weighing the pros and cons is crucial in choosing an option that fits your needs and budget.
Unknown History
You are moving to a used flat, but you might not be aware of the flat’s true history such as it might have any leak, structural damage, pest problems, and the like. It can be a serious disadvantage because you will need to bear unexpected expenses shortly. So, you need to find out the exact history of your future home to avoid this unwanted cost.
Limited Customization Options
Purchasing a used flat comes with the disadvantage that it is sold “as-is,” meaning that you have limited options for customization. This can be a significant drawback for you if you want to make significant changes to the flat to fit your specific needs or preferences. The seller might not be willing to negotiate on upgrades, and the cost of changes might not be feasible for your budget. Making changes might also require approval from the building’s management or governing body, adding to the overall cost and complexity of the project. You need to carefully consider the feasibility and costs of any desired changes before making a purchase and be prepared to work within the limitations of the property’s current condition.
Financing Problems
Financing a used flat can be more challenging due to factors such as higher perceived risk, potential lower resale value, and additional complexities related to existing mortgages. Banks may require higher interest rates or down payments from borrowers to mitigate their risk, making it more challenging to secure a loan. But with proper research, preparation, and negotiation, buyers can still find a loan that fits their needs and budget.
Keep Pace with the Modern Features
Modern apartments are designed with higher-quality materials and advanced features like earthquake resistance, power backup facilities, elevators, fire safety measures, and security systems. If you opt for a used flat in Dhaka, you may not have access to all these amenities, which can be a significant disadvantage. Even if you manage to add them, it can be costly.
Depreciation Factor
When it comes to purchasing an apartment, whether used or new, the issue of depreciation cannot be avoided. All items have a limited lifespan, and some lose value faster than others. Choosing the right floor of an apartment can also impact its depreciation rate. Some individuals prefer to buy new flats directly from developers to avoid concerns about property depreciation. But if you decide to buy a used flat in Dhaka, a significant portion of its value might have already diminished, which might not be an ideal situation.
You can read also this article: Be aware of red flags while buying a used flat
Final Words:
By now you must have become sure of the advantages and disadvantages of buying a used flat in Dhaka. If you have any queries or need assistance regarding real-estate property or getting your desired flat, please contact Best-Tech Properties.
Frequently Asked Questions
Flats can be a good choice for first-time buyers seeking an affordable entry into the property market, especially in high-priced areas. They often offer shared amenities like a gym or pool that can be costly in a house. Again, flats might have higher service charges or ground rent payments and lack outdoor space and privacy. You must consider your budget, lifestyle, and long-term goals before deciding.
Buying an old flat can be a good decision depending on budget, personal preferences, and property condition. The property might have charm but require costly maintenance and repairs if not well-maintained. Before buying, conduct a thorough inspection to identify potential issues and consider the location and local property market trends. Seek advice from professionals, such as real estate agents and inspectors, to make an informed decision.
While the value of a flat might decrease with age due to wear and tear, outdated design, and technological obsolescence, several factors can affect the rate of decrease, such as location, quality of construction, maintenance, and upgrades. A well-maintained flat in a desirable location can retain its value better, and upgrades and renovations can increase the value of an older flat. Economic conditions and supply and demand can also impact property values. It’s important to consider all factors when evaluating the potential return on investment.
The lifespan of a flat can vary depending on factors such as construction quality, maintenance, and environmental conditions. A well-built and well-maintained flat located in a favorable environment could last for several decades or even centuries. In some countries, regulations require flats to have a minimum lifespan of 50 years or more. But natural disasters, climate conditions, and wear and tear can affect a flat’s lifespan. It’s important to note that an older flat can be just as valuable and functional as a new one if it’s well-maintained, and the age of a flat doesn’t necessarily determine its condition or value. Regular maintenance and upkeep can help ensure a flat’s longevity.