Ready-to-move-in properties are a less common option but let's take a look at some factors on why you should consider this third alternative.
For many, the options for buying a property are either a new project from a developer, or a completed unit from the sub-sale (secondary) market. Both have their own sets of pros and cons, but could buying a new property from a developer that's also ready to move in be an option that offers the best of both worlds?
Ready-to-move-in properties from developers are new units that are not yet sold upon the property project's completion. There are usually the few remaining units available, and as its name implies, are ready to move in when the ownership paperwork is completed. Compared to new projects or sub-sale units, ready-to-move-in properties are a less common option – but let's take a look at some factors on why you should consider this third alternative.
New launches have a completion time of around three years. In that period, many things can happen, the worst of which is if the project is delayed or even cancelled halfway. If you've already committed to the project, you will need to pay for the interest incurred from the home loan during the construction stage – even if there are delays on the project's completion. A ready-to-move-in property alleviates these risks, as the project is already completed.
On top of that, a ready-to-move-in property offers the opportunity for consumers to review the quality of the property – and even the entire completed project – in person before choosing to invest. This alleviates the risk of unforeseen defects cropping up, which can be quite common when buying a property which is still under construction.
The units around the property may also already be filled, so you could even take a look at your neighbours before deciding to get the property. It may sound trivial, but the quality of neighbours is an important factor that you can't control when buying a new property project.
Most properties require at least a 10% downpayment to be paid upfront, but developers usually offer attractive rebates for new properties that reduce the 10% figure by a significant chunk – it isn't uncommon to see rebates of up to 8% to offset the downpayment amount. In addition, partner banks for the project may also offer lower interest rates for the home loan.
But since subsale properties are dealt with individual owners, buyers will not enjoy such a scheme. That means you need to raise a healthy amount of money to be able to pay the downpayment. You could apply for a personal loan to pay for this, but that means you'll be servicing two loans that will surely leave a dent in your income.
Finally, developers may even waive legal fees for ready-to-move-in projects. This is easily a five-figure sum that subsale buyers cannot save on. For instance, M Group has a number of ready-to-move-in properties that offer attractive financing options, free legal and SPA fees, and even free moving services for some projects.