Buying a condo in Singapore is a significant property investment, and with so many choices in the market, it is understandable if you are feeling a little overwhelmed. The first thing you need to do before you start shortlisting potential purchases is to determine whether you want a new condo or a resale condo.
Both options comes with a different set of pros and cons, and in this blog post, we’ll look through all of them, so you can see for yourself what the best choice is for you.
New Launch Condo
Just in case some of you don’t know, a new launch condo means a property that is being sold while still being built. During the construction phase, developers often start selling the units based on showflats, brochures, and floor plans. The Zyon Grand, a new and popular property located along Zion Road, is an example of a new launch condo.
Pros of Buying a New Launch Condo
More Capital Appreciation
If you buy a property in the pre-launch phase, the selling price is typically lower than the expected market value. In addition, VVIP previews and launch phases often offer attractive pricing and incentives. Nearer the date of completion, property prices can increase, offering you significant capital appreciation, especially in prime locations that are popular with residents and investors.
Lower Upfront Costs
Pre-launch condos have staggered payment plans, requiring a set amount of cash throughout the construction phase. This gives you easier cash flow compared to lump sums that are typical of resale condos.
New launches typically collect a payment when you make your purchase, then installments every six months or so.
Less Maintenance Costs
In new condos, fixtures, appliances, and facilities will be brand new, which may equate to lower maintenance costs in the first few years. Older resale properties might require more frequent upkeep or repairs to appliances and fixtures.
In addition, shared areas like gazebos, BBQ pits, and roads might need some replacing, and these costs are typically shared among the residents through the monthly maintenance fees.
Cons of Buying a New Condo
Not Instant
New condos aren’t completed yet, unlike resale flats that can be moved into straightaway. That means you’ll have to wait a few years to move into your new home, or enjoy the rental income, if you’re purchasing for investment.
Not Tangible Yet
Your property isn’t completed yet, which means you can’t see or touch it. You’ll be relying on floor plans, artist impressions, and the showflat.
Market Uncertainty
New condos take years to finish, and future market conditions like economic downturns or interest rates can be unpredictable. Some factors greatly influence the property market and potential fluctuations to prices, which is why it is important to invest in stable, growing regions such as Singapore.
Resale Condo
Resale condos are bought from current owners, and you can visit to see what you’re getting, check out the surroundings, and decide for yourself.
Pros of Resale Condos
What You See Is What You Get
Resale condos have already been built and probably lived in. You can visit and see the actual property to know exactly what you’re getting. Likewise, you can also check out the surroundings to see if there are any dealbreakers. For example, noise from a busy expressway nearby or the roaring of fighter jets in some areas.
Immediate
Resale condos are available almost immediately, and if you don’t have renovation to be done, you can get right to enjoying your new home, or renting it out for income.
Negotiable Prices
Since resale condos are bought from owners, prices are slightly negotiable, unlike new condos whose prices are typically fixed by the developer. This is especially helpful if you have spare cash in the middle of a recession, which might make it a buyer’s market. Prices that are lower than can mean you get a good deal.
Cons of Resale Condos
High Upfront Payment
Sellers will want upfront payment upon confirmation of the purchase, which is a sizeable chunk of cash.
Older Buildings and Facilities
Of course, resale flats are 2nd or 3rd hand, which means there’ll be lots more wear and tear on the facilities and fixtures.
Buying new condo like zyon grand or resale is a deeply personal choice and we hope you’ll make the right one for you. Good luck!