When searching for properties to invest in, one of the options for investors will be to buy resale property.
Online property website Krib lists that the biggest advantage is that you’re able to move in immediately since the property is most likely already done and ready for occupancy and it might even be at a location that you really like. In addition, you could even score a great deal as some of the properties sold on the resale market are ‘distressed properties’ which are now sold on a bargain price.
While buying resold properties may be enticing, you may want to consider these inherent disadvantages to buying on the resale market.
– Reduced land tenure. If you’re buying a 50-year leasehold property, your ownership duration of the land is reduced. You may also find it harder to sell in the future as the land depreciates in value further.
– History of the property. There may be a reason for the owners to sell their property. Some might currently be in debt, and you’ll have occasional visits by unsavoury debt-collectors still looking to settle the loan.
– Further investment on renovation. Depending on how well maintained the property is, you could spend a lot more money renovating a secondhand home before moving in.
There is no clear cut choice when it comes to buying properties as you will need to look at your finances and your purpose for purchasing the property.
Those looking for a new place may want to stay in a brand new property sold by a developer. On the other side, some will want to live in a specific neighborhood, and will need to settle on a resale unit as such.
You should view properties sold by developers and on the resale market, before making a decision on what kind of property to buy. Never rush into a decision, and don’t be pressured to buy.
