Primary Vs Secondary Housing Market

Anything developed or introduced by human-being in this world has its own pro and contra in applying it. Similarly goes for buying houses; what are available in market for us to venture? YES!! Either new project by developers or sub-sale in secondary market would be the choices to choose when buying a house.

What would be the benefits and/or risks buying new house from developers? How about secondary market? Is there any benefits buying houses from secondary market? How we as a buyer can benefit from these two options? WHAT??!! Benefits from both market? YES! How about risks? Only for new projects? NO. Both have their own risks and obviously can be reduced or mitigate so that we are safe when do the transactions.

Generally for new projects there will be potentially two (2) risks where the completion of the project could be big doubt and the supply – demand curve is not really matured. These two (2) could be the nightmares for the purchaser and they are really hoping these will not happen. However, all the risks can be mitigate by applying some check on the developer background and survey on the supply – demand curve.

What would be the benefits for the new project or primary market? There are so many promotions are being offered by developers to attract more purchasers. There are discount or rebate being promoted where there is no requirement on down-payment and there is a case even getting cashback once the project is completed. Furthermore, there’ll will be waive for the legal fees with discount for maintenance fees (for apartment and condominium) for at least a year.

Secondary market or sub-sale houses are mainly very subjective because on how good the lawyer we hired to do the transaction. If the appointed lawyer is well-known on the transaction then we are safer side or else some nightmares will come soon. We will discuss further on this secondary in upcoming article on “Secondary Market”.