Sub-sale or New Property - Which to buy?
Hash Brown • Jun 30, 2021
There is this process in life where everyone goes through, called Adulting. What mainly constitutes Adulting? Investments? Purchasing your very own property? Adulting and thinking what type of Investments to make to boost your income? Wanting to own your very own property responsibly to live in and calling it your own?
A question that lies in every new adult with a desire of wanting to purchase a property of their own:
❝ Which type of property should I get,
Sub-sale or a Brand new property from new developments? ❞
Before making your decision on the type of property you would want to get, here we will discuss and differentiate the pros and cons of both type of properties.
Basically, sub-sale properties are properties that you will be buying over from a prevailing owner or in simple words, you are buying over someone else’s home that has been put up for sale.
Other than that, brand new properties are properties that are newly developed and do not have existing owners/have not been stayed in by anyone before.
Sub-Sale Advantages & Disadvantages
Sub-Sale Advantages :
- Mostly located at a well-established location/mature neighborhood which will allow ease in checking out the amenities available
- Able to grasp a feel of living in the property/area
- Able to have access to use the property immediately as it is already well built
- Some may have been renovated already which will help in saving renovation costs
- Able to know the actual transacted prices/market value
- Do not need to worry much of any future new developments which may interrupt with your living hood since it is a mature neighborhood
Sub-Sale Disadvantages :
- Difficult in obtaining more information about the property as it may be a very old property
- Unable to have a variety of units to choose from
- Rarely have discounts on the purchase price as the prices are already set by the owners unless bargain opportunities are offered
- Property may look old and need refurbishments which requires additional renovation costs to be incurred as well
- More legal & paperwork to close the deal
- Additional cost incurred such as valuation fee
New Property Advantages & Disadvantages
New Property Advantages :
- More varieties to pick your desired unit (best floor with the best views)
- Several discounts may be made available by the developers
- More available information on the property to be found
- Get to use first hand, as it is brand new and never used previously
- Warranty may be made available by the developers for the first 24 months, developers will borne the costs if there are any damages with the home built
- Modern/Unique design, able to keep up with the trend
New Property Disadvantages :
- Unable to move in immediately as, if the property is still under construction it requires longer wait time
- May have risks that construction may be delayed due to unforeseen circumstances
- Any internal/external complications may cause project to be abandoned
- Unable to grasp the feel of living in the property/neighborhood as it may still be under development
- Potential future developments around the area may occur which may cause some interruption with your living hood
- If any change of mind, it will be harder to resell if the property is still under construction
Costs of Purchasing Sub-Sale VS New Property
No. |
Type of Costs |
Sub-sale |
New Property |
---|---|---|---|
1 |
Down payment |
Mostly 10% of property price |
A minimum of 10% of loan amount or sometimes there are special programs designed by the developers |
2 |
Sales & Purchase Agreement |
Depending on the price tier of the property price |
Depending on the price tier of the property price |
3 |
Memorandum of Transfer |
To transfer the deed from the buyer to the seller with stamp duty fees |
The transfer of ownership of the property to the legal owner will only occur 6 months after property is completed. Charged depending on price tier & other government tax & disbursement fees |
4 |
Loan Agreement Fees |
A fee will be charged on the loan agreement (a contract binding between the bank & the borrower) depending on the property price tier |
A fee will be charged on the loan agreement (a contract binding between the bank & the borrower) depending on the property price tier |
5 |
Loan Agreement Stamp Duty |
A government tax to stamp Loan Agreement, usually 0.5% of Loan amount |
A government tax to stamp Loan Agreement, usually 0.5% of Loan amount |
6 |
Valuation Fees |
Depending on the property price, sometimes sellers will push the costs to the buyers |
- |
7 |
Miscellaneous Charges |
Loan Installment, interest, MRTA/MDRT, repair/maintenance costs |
Loan Installment, interest, MRTA/MDRT, repair/maintenance costs |
So now, which property should I buy?
Before making your decision, there are several requirements that you should consider as this may be a long-term commitment. Think about your desired budget, your preferred location & environment, the purpose of purchasing the property (own stay/investments).
Well, after all, both types of properties surely have their good and bad traits, but it all derives down to each person’s own preference. Since, now you have a rough understanding on the types of properties available in the market, you can start planning your budget & other requirements strategically.
For those who are looking to purchase a sub-sale property, feel free to look with ZeroHero, you get what you see plus for a cheaper price. ZeroHero is a one stop property platform where it is made available to assists you in searching for your desired sub-sale property! Why ZeroHero, when you can look for properties with a property agent? Here’s why,
✅ Buy at a Lower Price
ZeroHero does not charge comission to sellers, this results in achieving lower priced properties compared to market for buyers.
✅ Free SPA Legal Fees
Buyers purchasing through ZeroHero saves on SPA (Sales and Purchase Agreement) fees. No payment needed.
✅ No Fake and Duplicated Listings
What you see is what you get. ZeroHero only accepts genuine and quality listings from owners. Deal with direct sellers only.
Log on to zerohero.my NOW to explore & look for your desired home! Feel free to contact ZeroHero for further assistance! Happy shopping for your new home!