Singapore Property | If you are purchasing an investment property so as to lease it out, you have various things to consider. This means that you would be considering things in terms of hard, cold numbers. Regardless of how worn out or pretty a property seems, when making a choice between an old condo or a shiny new one, here are a few factors to consider.
Why go with a resale condo as a property for investment?
Many investors would rather go with a resale condo but it is not always the case. Although, it comes with some great benefits which include:
- You can begin renting out instantly: This is one of the most popular reasons for going with a resale investment property if you are purchasing it so you can invest. A new launch may take a while to get ready and accommodate tenants while tenants can use a resale unit instantly.
- More predictable rental income: it is easy to determine the rental income you can get from a resale unit. All you have to do is to check what the previous tenants used to pay.
- Possibility of finding units which are underpriced: Most times, the payment you make for a new launch is almost similar to the original value while for resale units, owners let go f properties for various reasons, it could be as a result of finance or divorce and they are usually in a rush to get rid of the property thereby offering you very minimum prices.
Why go with a new launch?
Some of the major reasons to choose a new launch include:
- Newer features and facilities: This is the major appeal of going with a new launch. All the facilities are still new because they haven’t been used before. They also come with newer features than old condos. This is because some of the ideas were not in place when the old ones were being built
- Lower cost of Maintenance: As a condo ages, the cost of maintenance tends to rise. They could have issues ranging from damp ceilings, plumbing among others which would cost more to fix. But this is not experienced in new condos and tends to save cost in the long run.
- New launches are usually on progressive payment mode and buyers will not have to pay a huge amount of cash, if you are not getting a mortgage loan. And for those who are paying via mortgage loan, the initial installments are much lower.
Upgrading to enjoy more space for your family, you may read on some new landed launches such as the Belgravia Green, a freehold strata landed, or the Realty Park Villas, located in District 19 or Nim Collection, a landed development near Ang Mo Kio Avenue 5.
So which should you go for?
If you are a new homeowner, it's safer to go with resale units because they come with fewer risks. You can easily observe the current rates and inspect the property yourself. New launches, on the other hand, are more ideal for more experienced investors as you would need a certain level of skill to estimate the potential of the condo and its location even before the building is constructed.