WHEN DO YOU CHOOSE A SUB-SALE PROPERTY FOR OWN STAY

If you are looking to buy a property for own stay, one of the key questions to consider is the type of property as well as whether you want to by subsale property. Here is a look at definition of what is a subsale property, and the pro and cons of buying a subsale property.

Sub-sale

A sub-sale property is simply a property transaction occurring within the secondary market, where the house buyer purchases from the owner of the property, which is usually an individual. Unlike a purchase from the primary market, it is unlikely for the buyer to know much about the seller, so it is crucial to ensure that the seller is the legal owner of the property. All this information can be obtained through a search on the property at relevant land office.

Additionally, the buyer should also check if the property has any encumbrance attached to it and to be extra cautious, check if it has any connection with any negative news reports. The more thorough the investigation, the less risk exposure remains and the less regret and unexpected expenses incurred at later stages.

Below are the pros and cons of purchasing a sub-sale property.

Pros of Buying Sub-sale Property

– You get what you see. The property has already been completed and occupied, there is no need to imagine what the views are, how the unit is structured and designed. The property is the one you are looking at, even the neighbours are likely to be the same. Even the rental price and past transaction price of the area is laid bare, the only thing you need to do is to ensure the data is accurate and get as much as you can.

– Instant return. Whether you are purchasing for your own stay or investing in property, buying a sub-sale property means that you get immediate return. For investment, you can rent it out immediately; for your own stay, you would be able to move in immediately. This is a big difference from a new launch property where you have to wait several years before enjoying the return.

– No delays, no cancellation. A sub-sale unit would have been constructed ages ago, the possible delays would be largely due to renovation works or delays in administrative matters. There is no risk of developer delaying works or cancelling the project due to cash flow problems.

Cons of Buying Sub-sale Property

– Seller. As mentioned previously, because you are not purchasing from a developer, the owner could be anyone and you have no idea who and how the person is. Some sellers will camouflage the defects of the property in the hope of fetching a better price. Some sellers are extremely changeable and will cancel or increase the purchase price at the last minute, wasting time and effort.

– Everything comes with a price. As the saying goes, “if it’s too cheap, there’s probably something wrong with it”. There is the risk of buyers getting a property that has a past that affects the value of the property. For example murder or haunting cases. Therefore it is important for buyers to approach extremely cheap deals with caution, not avoid them completely because good bargains are still out there.

– Less option. The search for a good sub-sale deal is extremely difficult and it is likely you have to look in a wide range of places because supply is extremely limited. Apart from that, the negotiation involves many parties and it can be more tiring than when you purchase a newly launched unit. Of course, when done right, gems can be found.

Conclusion

Hence, if you have an immediate need to have a place to stay, and do not want to waste too much money on renting from others for another few years, buying a sub-sale unit can solve your immediate need. You can also choose the location of your property closes to your family or working place, hence it’s always convenient from that perspective.

Ultimately, it still depends on your preference and current financial situation before deciding on whether to buy  sub-sale or under construction project. However, for an easier start to buying property, you should definitely consider buying under construction properties. This is mainly due to lower upfront cash required due to rebates and freebies, as well as