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Thread: To buy from Sales Launches or Sub-Sale, resale?

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    Default To buy from Sales Launches or Sub-Sale, resale?

    Was wondering, what is the main difference - Advantages/Diadvantages of purchasing from Sales Launches and Sub-sale/resale in this current environment of Govt policy change?

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    re-sale or sub sale can be worth looking at right now. my2cents

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    A good buy will always be a good buy regardless new launch subsale or resale. Those should not be main determining factor. Now good buy may be one that is well kept yet below market value. Or one that is fetching high rental yield now and from history. Or one that is located in upcoming development region. Or an old project that is very high chance to enbloc yet selling for fair value. Obviously if you cant wait then new launches are out.

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    Quote Originally Posted by cheongster
    Was wondering, what is the main difference - Advantages/Diadvantages of purchasing from Sales Launches and Sub-sale/resale in this current environment of Govt policy change?
    Cheongster... by the number of your posts and the date that you joined. You are fresh in this forum. But I am not saying that you are a freshie in the real world. The question that you asked are real serious questions.

    To have answers, really easy to study the similarities to this situation

    1. You bought a rolex at $10k a year ago (resale, subsale now)
    2. New rolex are now priced at $15k (new launch)
    3. Both are new, just one bought earlier and the other later (un-used and un-occupied).
    4. Designs could differ, as older design with bay windows and newer design without bay windows.
    5. Location is the same for comparision sake

    What else would you need to ask?

    Get a $10k rolex lah.

    If new rolex are $5k... same model... dun need to think, you have the answers. I am not talking about 2nd hand ones as in used ones. Draw your own conclusions please.

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    Quote Originally Posted by kingkong1984
    Cheongster... by the number of your posts and the date that you joined. You are fresh in this forum. But I am not saying that you are a freshie in the real world. The question that you asked are real serious questions.

    To have answers, really easy to study the similarities to this situation

    1. You bought a rolex at $10k a year ago (resale, subsale now)
    2. New rolex are now priced at $15k (new launch)
    3. Both are new, just one bought earlier and the other later (un-used and un-occupied).
    4. Designs could differ, as older design with bay windows and newer design without bay windows.
    5. Location is the same for comparision sake

    What else would you need to ask?

    Get a $10k rolex lah.

    If new rolex are $5k... same model... dun need to think, you have the answers. I am not talking about 2nd hand ones as in used ones. Draw your own conclusions please.
    I guess that is only true if the price is always going up without occasional downside (i am not saying it wouldn't be)
    The only prices that increases every year regardless of the world economies are my new rolex prices and my wife's coveted new LV bags.

    Anyway, my real question then would be your $10 rolex would not be selling at $15 even though the new one is selling at $15 right? Also what about $ lost to rental yield and the $interest lost while waiting for it to be constructed since Govt doesn't allow deferred payment scheme now?

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    sorry dun understand.. cannot find $10 rolex lah.

    You have to ask your agent to explain it to you.

    Cheers

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    Prices at developers' launches are higher because the buyers are mostly speculators, and what they buy are not entire condos, but rather options to buy condos. as simple as that.

    so if you are genuine home buyers, buy on the resale market, where prices are lower.

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    hi,
    i am genuinely confused.
    If speculators are out for profit at developer's launch, then why would the resale market prices (later on) by lower?

    Quote Originally Posted by stalingrad
    Prices at developers' launches are higher because the buyers are mostly speculators, and what they buy are not entire condos, but rather options to buy condos. as simple as that.

    so if you are genuine home buyers, buy on the resale market, where prices are lower.

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    Newer design without bay windows but bigger balconies (10% of your unit's size) + much much bigger air-con ledges!

    Quote Originally Posted by kingkong1984
    Cheongster... by the number of your posts and the date that you joined. You are fresh in this forum. But I am not saying that you are a freshie in the real world. The question that you asked are real serious questions.

    To have answers, really easy to study the similarities to this situation

    1. You bought a rolex at $10k a year ago (resale, subsale now)
    2. New rolex are now priced at $15k (new launch)
    3. Both are new, just one bought earlier and the other later (un-used and un-occupied).
    4. Designs could differ, as older design with bay windows and newer design without bay windows.
    5. Location is the same for comparision sake

    What else would you need to ask?

    Get a $10k rolex lah.

    If new rolex are $5k... same model... dun need to think, you have the answers. I am not talking about 2nd hand ones as in used ones. Draw your own conclusions please.

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    Yup, never end.... Next time include corridor and sell it to u.

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    Quote Originally Posted by kingkong1984
    Yup, never end.... Next time include corridor and sell it to u.

    Developers already do that in HK lol

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    yup, i know... learnt from this forum.

    Maybe developer can sell you the rubbish chute space also along common corridor.

    Hahaha so funny.

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    Quote Originally Posted by cheongster
    hi,
    i am genuinely confused.
    If speculators are out for profit at developer's launch, then why would the resale market prices (later on) by lower?
    The whole point is that the buyers expect the price to go higher. In a property market uprun, the older projects will lag in prices to new launches. And if the price gap is too big too fast, some would say it is a sign that a bubble is forming.

    If you ask me why there are pp buying new launches instead of previous launches and nearby brand new ones, I would think that there are some buyers who don't really do enough homework on the surrounding projects and were attracted by advertisements, showflats and other marketing effort. Some are also choosy in terms of facing (fengshui), view, floors etc whereby such units are not available in the secondary market now.some rush to buy thinking that their choice units will be taken up soon by others or the developers will increase the price soon. Such rather seemingly illogical happening is common when the property market is on the uptrend.

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    The premium for developer’s launch is much higher than resale, based on current launches. I personally find better value in resale in the current market.
    LH versus FH. LH resale means there is less time, hence value left. If it’s FH, the age isn’t that critical. Use the money saved from buying resale (significant discount against new) to totally revamp the place.
    On the issue of design, there are older developments with nicer design than some of the newer developments. It’s a matter of your personal taste and your ability to see beyond what is trendy and what is timeless.
    URA is always changing their rules on area calculation.
    First they allowed planters, then they relaxed ruling on bay windows, then they allowed balconies. Then they disallowed planters and bay windows…. Sigh…
    It used to make sense to buy new, when the deferred payment scheme was available. Profits are high with the leverage afforded by the 20% down payment. Now, the best rates offered by the banks for the 1st couple of years is not quite capitalized given the low draw up during the initial period.
    Buying from developers also means not dealing with greedy sellers. I have encountered sellers that moved the price after you have made an offer matching what they have asked. It’s quite disgusting. Hmmm… what is worse, dealing with greedy sellers or greedy developers….
    My random, unorganized thoughts on the issue.

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    Quote Originally Posted by blackfire
    The whole point is that the buyers expect the price to go higher. In a property market uprun, the older projects will lag in prices to new launches. And if the price gap is too big too fast, some would say it is a sign that a bubble is forming.

    If you ask me why there are pp buying new launches instead of previous launches and nearby brand new ones, I would think that there are some buyers who don't really do enough homework on the surrounding projects and were attracted by advertisements, showflats and other marketing effort. Some are also choosy in terms of facing (fengshui), view, floors etc whereby such units are not available in the secondary market now.some rush to buy thinking that their choice units will be taken up soon by others or the developers will increase the price soon. Such rather seemingly illogical happening is common when the property market is on the uptrend.

    another reason is that ...

    if you buy resale .. you start to pay mortgage immediately

    if you buy new launch.. you only pay 20 pct .. and start to service only 20 pct of the whole mortgage .. and as the construction progresses ..you pay more and more until the full disbursement of the 80(70pct) ...

    this way .. you pay 'less' to buy time for cap appreciation ..

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    Quote Originally Posted by proud owner
    another reason is that ...

    if you buy resale .. you start to pay mortgage immediately

    if you buy new launch.. you only pay 20 pct .. and start to service only 20 pct of the whole mortgage .. and as the construction progresses ..you pay more and more until the full disbursement of the 80(70pct) ...

    this way .. you pay 'less' to buy time for cap appreciation ..
    exactly....and some investors dun like to rent out/deal with tenants....they only go for cap appreciation....buy flour and den sell bread

    and all buy same price or later phase price increase even better ....if price crash all die tgt!

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    Buy an option, sell a dream, serve your buyer, get your cream, serve the seller, get your drink.

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    I believe resale for new launchers tend to be easier to sell than used ones.

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    This could be one of the key reasons why people are buying new launches. They are buying a hope. Hope the price will increase when TOP with leverage from the bank.
    Quote Originally Posted by proud owner
    another reason is that ...

    if you buy resale .. you start to pay mortgage immediately

    if you buy new launch.. you only pay 20 pct .. and start to service only 20 pct of the whole mortgage .. and as the construction progresses ..you pay more and more until the full disbursement of the 80(70pct) ...

    this way .. you pay 'less' to buy time for cap appreciation ..

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    Quote Originally Posted by DC33_2008
    This could be one of the key reasons why people are buying new launches. They are buying a hope. Hope the price will increase when TOP with leverage from the bank.
    i hf been buying hope den

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    Your hope is being realised so far?

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    My view is depend on area and the reason behind the buying, if for own stay like some area, upgrader or 1st time owners if they can afford(money and time), they will go for new one, I have friends who prefer new one as they prefer the new furnishings and use the toilet brand new(toilet seat etc...)...maybe that is the reason why it can be related to buying used car or new car(be it continental or japanese)depending on individual perception of value.

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    Quote Originally Posted by peterng8
    My view is depend on area and the reason behind the buying, if for own stay like some area, upgrader or 1st time owners if they can afford(money and time), they will go for new one, I have friends who prefer new one as they prefer the new furnishings and use the toilet brand new(toilet seat etc...)...maybe that is the reason why it can be related to buying used car or new car(be it continental or japanese)depending on individual perception of value.
    Excellent remarks.

    Location specific. If that location has new condo's, buy new condos,

    If that new condo are very expansive, buy ready built older ones

    If ready built old ones cannot make it, used tiolet seat...

    Then buy those under construction, no tiolet seat...

    If cannot afford those under construction, dun buy and just use the seat when you go visiting

    Lastly, use government provided tiolet seats... very nice and cheap.

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    But that was when there is Deferred Payment Scheme right?
    Now?
    Quote Originally Posted by DC33_2008
    This could be one of the key reasons why people are buying new launches. They are buying a hope. Hope the price will increase when TOP with leverage from the bank.

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    Now with low interest and pay only 20-30% downpayment and leverage 80-70% from bank. Worth betting for younger people. Worst scenario stay in Condo, rent from HDB to pay for loan and take top up the rest with cash. Garmen has opened this gate for HDB.
    Quote Originally Posted by cheongster
    But that was when there is Deferred Payment Scheme right?
    Now?

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    now if you have HDB - Government says must stay and rent out your Condo...not the other way round.
    Quote Originally Posted by DC33_2008
    Now with low interest and pay only 20-30% downpayment and leverage 80-70% from bank. Worth betting for younger people. Worst scenario stay in Condo, rent from HDB to pay for loan and take top up the rest with cash. Garmen has opened this gate for HDB.

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    Quote Originally Posted by DC33_2008
    Your hope is being realised so far?
    i am sure u buy with hope as well

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    Is there correct? Apparently, as long as you satisfy your 5 year MOP, you can stay condo and rent HDB. Lots of people do that, including this YPAP PR who receive a lot of flak.

    Quote Originally Posted by cheongster
    now if you have HDB - Government says must stay and rent out your Condo...not the other way round.

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    Quote Originally Posted by cheongster
    now if you have HDB - Government says must stay and rent out your Condo...not the other way round.
    u r outdated bro....hehe

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    Depends on the individuals. I prefer to buy something I can see and touch, and without too much duress. If you can view the units in your own sweet time and negotiate one-on-one. It's more intimate and sometimes u can feel "yes, this is my house."

    Others may prefer the "crowd" at a showflat and looking at "models" - balloting etc makes one feel that there much "value" in that thing. It's like queuing for Hello Kitty toys - there must be a reason why there is a crowd? I think it give some "comfort" in numbers. Also, the furnishings will definitely look better in a "showflat" then a resale flat. One just have to bear in mind that at the end of the day, you're getting the bare walls and some fixtures. Also, some people have not saved enough yet. Buying from a showflat allows them to save in the next 3-4 years before the house TOP. Buying a resale means you MUST have the means to buy TODAY.

    And both strategy can make money.

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