Here are some key considerations before investing in a subsale or brand-new property:
| Key Consideration | SUbsale | new project |
|---|---|---|
|
Property Condition
|
May be older and require repairs or renovations.
|
In pristine condition with modern finishes and features.
|
|
|
Thoroughly assess its condition to avoid unexpected maintenance costs. |
May require a waiting period if it's still under construction. |
|
Price and Payment Structure |
Prices vary based on market conditions; potential room for negotiation. |
Developers may offer promotions, flexible payment plans, or incentives. |
|
|
Full payment is usually required upon transaction completion. |
Progressive payments may be needed during the construction phase. |
|
Location |
Located in established areas with mature infrastructure and amenities. |
Often situated in developing areas with potential for future growth. |
|
|
Allows you to assess the neighborhood before purchasing. |
Amenities and infrastructure may still be under development. |
|
Investment Potential |
Historical price trends and rental demand are more predictable. |
Potential for higher capital appreciation, especially in emerging areas. |
|
|
Capital appreciation may be slower in already mature areas. |
Greater uncertainty regarding future market value. |
|
Customization |
Limited scope for layout or design changes unless extensive renovations are planned. |
Often allows some customization (e.g., finishes, layouts) if purchased early. |
|
Legal and Fees |
Legal fees, stamp duty, and agent commissions apply. |
Legal processes are generally simpler. |
|
|
Possible legal issues, such as unpaid taxes or disputes from the previous owner. |
Developers may cover some legal fees or provide incentives to reduce costs. |
|
Time to Move In |
Immediate move-in possible after transaction completion. |
May involve a significant waiting period if still under construction. |
|
Financing |
Requires full financing upon purchase completion. |
Progress payments provide more time to arrange financing. |
|
|
Immediate mortgage arrangement is necessary. |
Mortgage is still required before completion. |
|
Risk Factors |
Risks of potential property defects or hidden repair costs. |
Risks include construction delays. |
|
|
Market value might stagnate in mature areas. |
Uncertainty in final property quality and surrounding area development. |
|
Return on Investment (ROI) |
Immediate potential for rental income or resale profits. |
Returns may only be realized after construction completion. |
|
|
Returns are more predictable in established areas. |
Higher appreciation potential in growing areas. |
WHAT IS SUBSALE? WHAT IS NEW PROJECT?
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