HOT TOPIC � by Rebecca Michelle
Primary or secondary property : Which is worth buying ?
So , which type of property stretches your Ringgit the most ?
When it comes to purchasing a residential property , the common question that comes to mind is , do I buy a new property or search for secondary property in a specific location ?
Generally , people buy a residential home for property investments before buying it to live in . So , as someone who is looking to buy a residential home to live in , what are the options out there ?
The property market is usually divided into two categories : primary market and secondary market . The primary market consists of new properties , which include new launches and ongoing projects from the developer .
The secondary market is made up of secondary or sub-sale properties , previously owned houses in matured locations and established residential areas . To further elaborate , secondary properties are properties that have been introduced into the market for rental or sub-sale which will either be rented or owner-occupied by subsequent owners .
It is normal for industry outsiders to think that the primary market , or new properties , contribute to the most number of sales , due to the alluring advertising and marketing of new developments . However , contrary to popular belief , the secondary property market takes up the bulk of the volume of residential property transactions , as opposed to the primary property market . This is mainly because the secondary property market offers more choices in already established locations .
Oh , so shiny ! For starters , primary market properties are brand new , and therefore less money is required to be spent on renovation and refurbishment ; some , if not all , units even come with basic furnishings such as kitchen cabinets and builtin wardrobes .
Primary property prices are usually set cheaper or at market value by developers , and in a soft property market , purchasers buying primary properties are most likely to enjoy good capital appreciation on the property , sometimes even before its completion .
Capital appreciation is what most real estate speculators look for , thus it comes as no surprise that they too , are among those who prefer primary market properties . Buying primary market properties straight from the developers at a low price and later selling it at an appreciated value in the secondary market drives them to make purchases .
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