There are many housing schemes available in Malaysia, such as Skim Rumah Pertamaku and PPA1M Putrajaya Scheme. There are also many new launched properties for sale in Malaysia. Many people are torn between buying a new launched property or a sub sale property. This article will guide you in deciding which kind of property suits you best.
- Property that is still under construction
The table below will list down some of the pros and cons of buying property that is still under construction.
| Pros | Cons |
| 1.Value appreciation
As you will be buying the property first hand, that also means you will be buying it at a cheaper price. Once the property is done, the value will naturally appreciate. |
1.More risk
With cheaper price it will also come with a higher risk. That being said, the quality of the property is not guaranteed. |
| 2. Easy access to information
As it is still under construction, you can easily get the information of the property from the developer. Just go to their showroom or office and you can obtain as much information as you like. |
2.Financially restricted until completed
Buying a property that is still under construction will also mean you are getting your money locked as you will still need to wait for another 3 to 4 years until the property is completed. During the 3 to 4 years period, your money with your bank is locked therefore, buying another property will be challenging. |
| 3. Warranty
Properties that are still under construction usually come with a warranty, with a standard period of 18 months defect liability. This warranty allows the developer to repair any defects such as crasks or bathroom leakage.
|
3. Final product uncertainties
As the property is still under construction, you will not know how the property will turn out in the end. |
- Sub sale properties
| Pros | Cons |
| 1.You get what you see
Since the property is already completed, you will be getting what you see, ranging from the condition of the house, the view from your house, the facilities or even your neighbour. |
1. Difficulties looking for the right properties
The process of finding the right property can be tedious. |
| 2.Instant cash flow
You will be able to get instant cash flow if you buy a sub sale property as you ca n rent the property out as soon as possible and collect rental from it. |
2. Seller harzard
Some sellers may change their minds or increase the price of the property at the very last minute. You will then have to pay the extra with your own money. |
| 3.No construction delays
Since the property is no longer under construction, you will not have to deal with possible delay, developers missing or project abandonment. |
3.Buyer hazards
Be cautious when the seller is selling the property at a cheap price or being overly keen on getting rid of the property. |
In conclusion, regardless of which property you choose in the end, it is essential for you to do your research and plan your budget.
Different financing alternatives for your housing loan 