subject: Property Investments: Do new or resale properties make better investments? [print this page] Property Investments: Do new or resale properties make better investments?
Property investors' want to purchase properties with good capital growth in order to maximise their profits earned. In their search for suitable properties, investors are often faced with many tough factors to consider. One question that investors often ask is if they should buy new or resale properties.
Generally, we know that older properties require more maintenance due to wear-and-tear. In comparison, less maintenance is expected for newer properties. A key difference is that new properties bought directly from developers are entitled to a 1 year Defects Liability Period (DLP). DLP lasts from the point when a property receives its Temporary Occupancy Permit (TOP) to when it received its Certificate of Statutory Completion (CSC). In comparison, there is no such arrangement for resale property.
From the value-for-money perspective, we noticed it would cost more to buy a newly launched property now as compared to a resale property that was constructed some time back. Construction costs have increased over the years hence investors would be likely to get a smaller unit if they were to buy directly from the developer. In comparison, they could potentially get a bigger resale apartment for the same amount.
Ultimately, the decision to buy a property does not solely rely on whether it is a new property or a resale property and there are many other factors that should be considered. Nonetheless, if the investor is focused on getting the most value-for-money deal, we believe that he would stand a better chance in achieving his goal with a resale property.
