There are quite of readers and friends ask me this questions when they decided to buy property be a condominium or landed property. The developer still has some units for sale at a discount and there are also sub sale units available in the market. What are the pros and cons of buying from the developer Vs sub sale? Which one should I opt to?
Buying from Developer
New development, also known as the primary market is usually the choice of new/young buyers because of the low entry cost of new development projects. The entry cost is typically between RM1000 to RM5000 for current market situation. On top of that, most of the other cost such as legal fees, sales and purchase agreement covered by the developer. Just look at new launch of Maya Service Suite, required only RM1000 as booking fees. Nothing else.
Normally in order to stay competitive, many developers also offer rebates and freebies to their purchasers. Therefore, for new buyers that have limited savings to qualify for a sub sale purchase, this is the likeliest entry into the market. New developments are among some of the easiest to procure financing for, in lieu of the very competitive market.
When to buy from Subsale market?
If you are equipped with knowledge how to source for property from subsales, then very likelihood that you can find a good deal. For instances, if u found a desperate seller offer 30% below market value, then grab it.
Buying from developer, you need not to worry about transaction fail due to seller’s problem or if there is any con case. The downside buying from subsale market is you need to fork out more cash.
In typical situation, you buy from subsale with the if:
1. It is your favourite unit that developer had no more better option for you to select from.
2. 30% below market value which price is way much cheaper (take into consideration of agent charges, misc fees etc).
3. You prefer renovated unit or clean unit or some readily moved in condition.
Cost of buying from Sub sale market comparison
Above table showing the house price Vs the total cash outlay excluding the agent fees due to each area the agent commission varies from 1% to 3% of the House price.
Subsale for Prominence Condominium Vs Developer unit at 2018
One of my close friend want to purchase a unit for own stay at the Bandar Perda. He bumped into the Prominence Condomimium and he has two option, either buy from Subsale market or from Developer unit.
Below is what he share with me.
From developer unit, giving 15% discount for 1500 sqft
Whereas for smaller unit, 1273 sqft, giving 10%
Now what he found from the subsale market as below:
Which one to choose from, buy from developer or from Sub sale market? Share your view on the below comment.