Should you a new or subsale property? 66% of people in Malaysia are looking for brand new property, 27%,looking for subsale and 7% are interested in auctioned properties.
Why buying new properties? These are some of the benefits of buying brand-new property compared to subsale.
Rebates
There are early bird rebates, special rebates, limited offer rebates and regardless of the name developer called it, it reduces the overall price of the property!
For eg a RM500,000 property with a 10% early bird rebate, saves you a whopping RM50,000!
With subsale property, you can’t get this type of rebates.
In addition to the rebates, some developer also provides additional cash for house furnishing and the amount can be up to RM10,000 – RM20,000.
No Down Payment
The rebates mentioned earlier given by the developer are usually covered the 10% down payment. Hence, when you buy a new property, you do not need to pay for the deposit.
Zero-Interest Payment
If you’re buying the 3rd property (and onwards) under mortgage, you will usually be entitled for 70% from the SPA price. Therefore, you will have to fork out 30% upfront.
30% is a huge amount, especially if you are young adult who are just enter workforce. Unless you have additional savings, or your parents are more than willing to help with the 30% payment, chances are it is a huge burden.
If your property cost RM500,000, that means you have to spare RM150,000 to pay for the 30%. (usually 10% come in the form of rebates, having said that, you still need to set aside RM100,000)
For new property, some developer will offer zero-interest payment for the 20%, and therefore that will save you a few thousand of Ringgits of the interest itself.
Defect Liability Period
Under HDA Malaysia, the DLP is 24 months (individual title) or 36 months (strata title) starting from the date you receive your keys. And within this period, the homeowner will need to check for any damage, defects, as well as poor or faulty workmanship.
For subsale property, the DLP is usually already expired. Therefore, any defect you will have to cover with your own out-of-pocket expenses.
New Fittings
With new property, you get brand new from A-Z. Everything is new from your toilet accessories, windows, doors, tiles, and yes everything smells new. For subsale property, you may need to do a major renovation if you want everything new including tiles, walls, accessories, and only do that if you have deep pocket.