New Launch Vs Resale

Is New Launch always the best? 

What are the benefits of New Launch and Resale?

A New Launch condo is a condo development that hasn't been built at the point of sale. It takes about 3-5 years to construct and is usually sold by developers. Resale condos are completed condo developments and resold by the owner to the market. While the resale option opens up a lot more options, here are the reasons why you need to consider both options. Feel free to fill in the form and speak to any of the Endowhome professionals for advice.

1. Affordability and Price Appreciation

Yes, Resale prices are generally lower. However, cheap may not mean it is good. Often, people purchase their residential property with hopes of price appreciation when it is sold. Resale prices will require more analysis and buying at the right price. Often it is the first-owners that make the most profit. How important is price appreciation in your scenario?

2. Timeline and Urgency

Resale condos allow you to move in ASAP, while you need to wait for New Launches to receive Temporary Occupancy Permit (TOP) and it may take years. If you have a shorter timeline, you may also consider unsold New Launch units where you can still benefit from owning a new condo without waiting. However, there is a TOP effect where these units tend to cost more nearer to TOP.

3. Payment Scheme and Cash Flow

In Resale, it usually uses a normal payment scheme (25% cash and 75% loan). However, New Launches have progressive payment scheme where the Bank disburses the loan amount in stages and your monthly repayments rise gradually. This means better cash flow and possibly higher returns from leveraging.

4. Availability Discounts and Transparency

For Resale discount the only discount is what you can bargain from the seller (and often there is a mismatch between the seller’s asking and actual valuation!). New Launch prices are very transparent. Often the early phrases, developers will give early bird discounts too!

5. Rental Income and Price Appreciation

Resale allows immediate rental income and are more predictable (based on past transactions). In New Launches, you will need to wait for TOP before receiving your passive income from the investment. However, do you prioritize price appreciation or rental income more? If you can make at least 100K-200K each New launch purchase, will it be more attractive than the rental income for investment?

6. Hidden Cost: Time and Renovation Cost

There may be hidden costs in Resale that many buyers missed out! Often, resale sellers ask for time extension and free rental stay while waiting for their next place. Most importantly, renovation cost has been increasing (ranging $30,000 to $150,000). What’s your potential renovation cost? Are Resale really cheaper than New Launches?

7. Other Costs

Besides the reasons discussed above, there are also many other important considerations such as: Unit layouts and Unit Efficiency, Direction of the Units, Design of the apartment Complex, Maintenance Costs, Condo facilities.

Is now the best time to buy or sell? Or should you just wait and see? What is the time horizon and purpose for this property investment? Whether you choose to invest in a resale or New Launch condo, you have to consider the circumstances that you are in. Hopefully these questions and articles allow you to have a better understanding.

Which New Launch or Resale is worth considering and is priced right now? This is quite specific to each property development. We can help you by providing data, understanding your unique situation, and advice strategically.

Endowhomes will be glad to provide a free analysis for you as everyone’s situation is different! Kindly fill up the enquiry form and our team will get in touch with you very soon!

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Should you buy, sell or wait? What’s the best step for you? Feel free to get in touch with us! 

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