According to experts, investment in a new condo property is always a better option. Let us look at the benefits.
Get spared from hefty monthly payments
Investors have many reasons to be happy today if they had invested in a new condo in the initial stage when it was newly launched. In the construction phase they don’t have to pay high monthly instalments, and at the same time the property price will be rising. This means, the ROI is high.
No asset depreciation in new launch
It is very important to have an investor to understand both facets of appreciation and depreciation rates in terms of land as well as property. While the appreciation rate is usually on the land, the wear and tear rate in most cases is generally on the property per say. It’s fair to say that downgrading on the property will not be calculated if the rentals are not yet finalised.
The property price starts to drop after the property is completed, but the property rate increases. The depreciation of the property kicks in from the completion year onward. And this means that when an investor purchases a resale property, the profits derived from subsequent sale will not be as substantial.
Newly-introduced projects, including new launch freehold condos in Singapore, do not start to depreciate from your first year of purchase, but only on completion. As a result, an investor is a lot more likely to get more profits in the condo.
Novelty factor of a new condo
You might be the second or third owner in resale property. The condo facilities would have been subjected to wear and tear as it has exchanged many hands. But when you book a new condo that has just been launched you will be the first owner to occupy it. Hence all the facilities, including condition of unit, are in proper state without any wear and tear.
You can negotiate for better deals
You have to gravitate towards new launches if you are looking for good value. You can make use of property websites in Singapore to keep a track of cheap condo launches near MRT. They will be able to find a condo within your budget with all the facilities you are looking for.
There is a major difference between buying resale units from past owners and buying new launch freehold condos in Singapore. When you book for a new condo that has just been launched the developer is selling you the unit for a wholesale price. This is because a developer is like a wholesaler who sells in bulk.
To achieve maximum sales volume developers will usually offer early-bird or VIP discounts. This is in addition to the pricing of their products at fair market levels. On the other hand, there is hardly any scope to negotiate in resale properties, as the seller would also look to gain maximum profit.
No possibility of extra expenses vs resale
When you book a new launch freehold condo in Singapore, the developer will rectify any defects and flaws as they are bounded by law before legal completion. This saves you from any hidden repair cost. The defect cost might actually add up to considerable amount when you buy a resale property.