RISK FACTORS BEFORE BUYING AN APARTMENT

Whether a buyer should purchase a new or an old flat largely depends on the buyer’s financial capacity and requirements, said Md Mosleh Uddin, managing director of Akaba Developments Ltd.

Speaking to the Daily Observer, he said that an old flat can be more affordable and may also have stronger documentation.

According to him, a new flat generally requires a higher investment. Besides the purchase price, buyers may have to pay for registration, interior work, parking, utility connections and other expenses.

He said buyers should also be careful about documentation and ownership when purchasing a new flat. They need to check the developer, project documents, approvals and other relevant papers before making a decision.

A new flat has some clear advantages. It usually offers modern design, new fittings and updated facilities. Buyers may also face fewer immediate repair and renovation costs.

However, buying a new or under-construction flat can involve risks. Buyers have to depend on the developer for construction and timely handover. Any delay can create additional financial pressure, especially for those who are paying rent while waiting for their apartment.

Uddin said buyers should therefore check the developer’s previous projects, construction quality and handover record before purchasing a new flat.

An old flat, meanwhile, can be comparatively affordable. A buyer may sometimes get a larger apartment within the same budget. The property has also already been used, allowing the buyer to inspect its actual condition before purchasing.

“An old flat can be cheaper, and its documents can also be stronger,” he said.
However, he cautioned that buyers should check whether the property has any outstanding bank loan or other financial liability.

“Before buying an old flat, the buyer has to check whether there is any bank loan or other financial liability attached to the property,” he said.

The buyer should also verify ownership documents, previous transfer records, approved plans and other relevant papers.

The physical condition of an old building is another concern. Plumbing, electrical wiring, waterproofing, lifts, generators and other common facilities may require repair or replacement because of age. These costs should be included in the overall budget.

According to Uddin, neither a new nor an old flat is automatically the better choice. The decision should depend on the buyer’s financial capacity, purpose, preferred location and ability to manage future costs.

A buyer seeking modern facilities may prefer a new apartment, while someone with a limited budget may find an old flat more suitable, particularly in an established neighbourhood.

In both cases, proper verification is essential.
“Before buying a flat, buyers should look at the documents, financial liabilities, physical condition and all related costs. They should not make a decision only by looking at the price,” Uddin said.

He said buying a flat is a major financial decision, and buyers should take enough time to verify all relevant information before signing an agreement.