Category Archives: New Launch

The Main Benefits of Acquiring New Launch Projects

logo23New launch projects refer to developments which are undergoing construction. Developers of such properties sell units on them off the floor plan. At times, the developer builds a layout mock-up or show suites to aid prospective buyers in visualizing space as well as furniture-placement.

By comparison, resale units feature completed properties where buyers physically inspect them before making a purchasing decision. It may appear at first glance that a resale unit makes a prudent buying choice, especially because the buyer can gauge in person what to acquire. As well, the completed resale unit is available for immediate occupation or rental purposes. New launch projects in contrast could take a maximum of 5 years before undergoing construction, thereby resulting in lost rental income and opportunity of enjoying property.

 

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However, the above two benefits are the main ones with resale units. Projects launched anew deliver a larger number of advantages to property buyers.

dealsLow-Cost Instalments

Acquiring such property enables the buyer to enjoy making repayments at low instalments as property appreciates in value. Monthly repayment projects are especially quite low in this case, owing to the progressive schedule of payment employed. Property market price keeps increasing during construction phase, when the monthly instalment is fairly low. The outcome is a great ROI or Return on Investment.

Exclusion of Asset-Depreciation Costs

Project launches exclude asset depreciation prior to completion of property construction. All properties depreciate in value in general, but the land on which they are built offsets this effect as it constantly rises in value. However, new launch projects do not depreciate in value, since they are offered while undergoing development. Resale property by contrast would have significantly depreciated by when it is offered to potential buyers.

deals2Avoidance of SSD

Singapore employs Seller Stamp Duty, or SSD, which it levies on the seller, whenever they sell units within the initial four years of making purchase. A person buying resale property therefore has to find a quick tenant to avoid paying hefty monthly instalments that come with unoccupied units. Such an individual does not have many options since the SSD would be quite expensive and reselling the property might occasion huge losses due to the investment already done on this property.

 

 

Buyers of new launch projects do not face these challenges as the construction period gets counted towards the four-year time interval. The SSD does not apply once property is ready for occupation, with the buyer having both the options of renting out or selling away the unit. Both of these options offer you great gains on the investment made.

deal45Novelty Factor

As well, acquiring a new launch project comes with some novelty factor for buyer or tenant, due to its virgin status in terms of occupation for tenant or buyer.

Incentives

When promoting or marketing such a project, the developer at time might offer huge discounts, vouchers or subsidies to investors in order to induce sales. It is thus possible negotiating better deals with developers compared to individual sellers.

By comparison, hidden costs might come with purchases of resale property, including costs of repair or pest termination. This commonly
happens if buyer is not careful to check a unit before occupying it.

If you’re looking for the best in the business then look no further than http://www.showflat.com.sg/ . You can also check out all their deal46locations here or why not read about the team here.

 

 

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