BUYING A NEW EC OR RESALE CONDO? Which is better?
Should you buy an EC new launch or get a Resale Condo instead? This is a question that lingers on the minds of property buyers when making their purchase decisions. Today we will list out the differences and what to consider for you to make your best decision.
More often than not, property buyers that have come into some trouble with their agents and committed to a contract would then search online for solutions to their woes. They might tend chance upon Aaron Lin Property on youtube and then contact Aaron.
Despite not being engaged as their agent in the first place, Aaron would help where possible to advise. However, if one has committed to options to purchase and a contract, nothing much can be done thereafter except knowing and understanding on hindsight about the rights and wrongs.
To help with providing more knowledge to property buyers, we will today dip our toes into the somewhat controversial topic of buying a New Launch EC vs a Resale Condo.
New Launch EC
There are critics that would recommend buying a resale condo rather than a new launch EC and often times compare with the psf of the EC with the resale condo. But what are some of the strong suits of purchasing a New Launch EC.
New launch EC requires a high downpayment but there are grants possibly available
There is a deferred payment scheme available for new launch EC
The new launch EC is on a new lease, with new furnishings and has stable potential as an investment for profit
Despite a high commitment in downpayment required for a new launch EC, having a deferred payment scheme allows for some flexibility for buyers and they could get bridging loans to help them transit whilst still having a place to stay at in the meantime. As buyers are buying a new launch EC to stay in, the fact that furnishings are new, with no need for high renovation costs also being a significant win over resale condo.
Uncertainty in profits
Nobody would know for sure the direction of pricing and value of properties in future. As long as the property earns money, we would recommend looking past how much or less you earn, as there is always risk in investments.
Therefore, the recommendation of EC is due to the relatively stable value. There is a line of comparison that tends to compare a new launch EC with older resale condos with psf prices. However, it's not an apple to apple comparison and buyers would need to look into these comparisons in greater detail to understand them.
To each his own
Of course, it can never be said that New Launch EC is definitely always better then buying a resale condo. In fact, for certain buyers, they would not be able to comfortably afford the downpayment for a new launch EC with their income. That is when going to view some resale condos would be a prudent choice.
In the end, when buyers weigh up their choices, it's most important to recognize their own risk appetites, the risks involved in picking between new launch EC and Resale condos before making the best decision for their own unique situation.
Certainly, the best thing a buyer can do is to get advice before making any commitments from a competent agent that can best address their needs.
Watch as Aaron gets involved in the discussion of New EC or Resale Condo in the video here!