New Condo or Resale Condo – Avoid This Killer Mistake!

  📌 Watch this video to find out

1. Is New Condo or Resale Condo Better for you?
2. Why do new launches give better returns for pure investment play?
3. What do Tenants prefer? Smaller New Condo or Spacious Older Condo?

📌 New Condo or Resale Condo – Let me share my thoughts with you

• Newly condos are more suitable for investment while resale condos are more for own-use.
• If you are buying purely for investment and end up buying a larger resale condo, it is likely that you are attracted by the lower psf price and larger size – This is a Killer Mistake!

📌 Why a new condo is more likely to bring you higher returns.

• Firstly, you have to wait a 3-4 years before the project is completed or T.O.P. when you book your new condo. These uncompleted projects have to be priced cheaper because buyers are buying off-plan (i.e. from floorplans)

• Secondly, there will be early bird discount given by developers on balloting day. These discounts are important to draw in the crowd as all developers want to have a “Good Start”

• Thirdly, generally most tenants will prefer “Smaller New Condo” Over “Bigger Old Condo”. They will be more willing to pay higher rent for “New” rather than “Size””

Of course, there are some who felt that resale condo will have the advantage because the owner will be able to rent it out immediately. This may not be as advantageous as it seems if you are buying a 99-year lease hold condo. As the number of years remaining in the property decreases, so will its value because of lease decay factor

📌 3 Situations When Resale Condo is Better

• You are a veteran investor who bought an older property for its en bloc potential
• You bought the resale condo at a fire sale price or below valuation.
• If you are a diehard freehold fan, you may want to look more at the resale market as there may not be as many choices in the new launches.

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