Nov 12, 19By Rizza Sta Ana

When it comes to real estate, it can be difficult for first-time investors or millennial homebuyers to decide on buying a brand-new condo or a pre-owned property. If they are faced with a condo for sale in a prime location priced at high market value versus a property for resale with a good juju and history, buyers are much more inclined on the affordable option.


We’ve come up with a helpful guide for investors who are considering investing in pre-owned properties.


Invest in Brand-New or Pre-Owned?


Factors

Brand-New

Pre-Owned

Design and Style

Wide range of options; can easily find the best that would suit lifestyle and preference 

Limited options; dependent on availability on the market

Condition

Never been used

Some properties may show small signs of wear or tear

Price

Dependent on market selling price with minimum seller discount, non-negotiable

Lower than market selling price may come with huge seller’s discount if needed to be disposed of right away

Amenities

Inclusive

Some properties don’t offer one but if they do, not included with the selling price

Location

Brand-new properties are often built in strategic or accessible locations

Buyer is limited to the number of available pre-owned properties

Need to Renovate

No need; pre-inspection may also lead to “free” improvements before turnover

While costly, any improvements are added property equity


1. Design and Style

Brand-new condos for sale are built in the latest design or architectural specifications. The specifications try to appeal to buyers who want to enrich their lives with purpose and meaning. Every space has its own function and can be maximized to the fullest potential. Some are even outfitted with features that can transform into new spaces like an extra bedroom space or a work area. 


Similar properties may be a dime a dozen with pre-owned properties. And if a millennial buyer has simple tastes, finding a modern-style home can still be quite challenge in a limited market.


2. Condition

Naturally, brand-new or pre-selling properties have never been used. There is always that buyer's satisfaction of being the first to live in a brand-new or pre-selling home. Moreover, should the buyer decide on purchasing a pre-selling property, he or she will have the opportunity to inspect the actual unit before turnover to make sure nothing is amiss and that the property is ready for move-in.


While most pre-owned properties show signs of being lived in, some previous owners will do cosmetic to maintenance fixtures to make them more presentable. Unless they are buying a property “as-in” or in its present condition, buyers may negotiate with previous owners to fix certain features of the property in order to agree with the initial selling price.


3. Price

When it comes to pricing, pre-owned properties are definitely more affordable. More so when the seller needs to divest the property off for urgent reasons. In some cases, the seller can be flexible with the payment scheme or offer a huge discount if they assess that the buyer is serious.


Prices for brand-new or pre-selling properties are leveraged on the land they are built upon. The higher in market value the land is, the most likely the brand-new or pre-selling property is expensive. On the other hand, some investors believe that the price may not be a factor if it means putting their money in a high-value asset they can capitalize later on.


4. Amenities

Nowadays, more homebuyers tend to give importance to experiences, and a property that supports a well-lived lifestyle is better than just any other property on the market today. Brand-new and pre-selling condos, for example, are nowadays designed and built to provide its future homebuyers more than just a home. A condo in a mixed-use project means having access to both leisure and business amenities and walkable to the workplace. Most pre-owned properties are standalone or do not come with privileges to amenities. If they are located within a community that does have amenities, the buyer may need to work out a separate agreement with a property association for a fee.


5. Location

Brand-new and pre-selling properties are built in locations that are carefully considered by developers to ensure that they are strategically located. Today’s condos for sale, for example, are built near or within mixed-use townships developed to make every urban point of interest accessible and walkable. 


Should a buyer decide on a pre-owned property, certain leniences should be made with regard to its location. While one might get lucky to find a house for sale that is a 10-minute drive to the office, the buyer might need to venture out for 30 minutes to go to a supermarket or grocery.


6. Need to Renovate

Buyers need not worry about additional renovation when buying a brand-new or pre-selling property. If they do find something out of specification during the pre-turnover period, they can request to have the developer fix them at no extra charge.


However, there is also an upside to renovating a pre-owned property. While the buyer may need to shell extra from their homebuying budget to make the improvements they want, all costs will definitely increase the property’s equity, and essentially its market value.



How to choose?

Buyers definitely have a lot to think about when choosing to buy a brand-new property or a pre-owned one. But the key to making the right decision is by taking into these all-important considerations to find out which factors are the most important to you and which factors are the ones they can make a compromise with. Either way, whatever direction they go with these considerations will lead them towards a buying decision that will not only enhance and enrich their future but also make their lives more meaningful today.


Visit https://www.signetproperties.ph/ for the latest brand-new condos for sale.