assessment helps potential homebuyers
to assess their loan amount eligibility
and set the budget for property hunting
process (and purchase).
• Homebuyers may also finance the
purchase of property or down payment
by withdrawing from their KWSP/ EFP
fund - Account 2. Many homebuyers
are not aware that they are allowed to
withdraw from their KWSP/ EPF fund or
do not know the withdrawal process.
• Vendor and purchaser may pre-agreed
on deferring the down payment and/
or the vacant possession date.
• Propose for longer completion period
with early vacant possession but subject
to nominal rental.
• Rent first with a commitment to buy
at a later date (with or without a preagreed
price)
What are the advantages of buying
properties at the secondary market?
What is your advice for people who are
looking to buy in the secondary market
now?
Advantages
• Unlike in the primary market where
properties are usually sold off-plan
through property show galleries or
virtual tours, potential buyers in the
secondary market property can inspect
the actual property product and have a
feel of the immediate neighbourhood and
surrounding environment. For stratified
properties such as condominiums and
serviced apartments, potential buyers
can visualise the quality of facilities
offered as well as the general level of
building maintenance and services.
• In the primary market, properties
are generally launched pre / during
construction stage and thus, buyers
are required to wait for construction
completion before delivery of vacant
possession. The construction period
can take up to 24 months for landed
properties and 36 months and above
for high-rise stratified units. As for the
secondary market, delivery of vacant
possession is much faster – within a
few months as it generally relates to
completed existing properties.
• For investors, these are ready
properties that can offer immediate
rental returns. Opportunities
• Post-MCO, there are opportunities for
potential buyers to obtain a good deal
as there may be more motivated sellers.
The RPGT exemption for disposal of
residential homes from 1st June 2020
to 31st December 2021 (limited to three
properties per individual) may see more
owners / investors looking to liquidate
their assets during this window period.
And with lower disposal cost, vendors
may also be more flexible in negotiating
sales terms and pricing, etc.
• The central bank’s revision of the
Overnight Policy Rate (OPR) by 25-basis
points to 2.00% on 7 May 2020, the
third revision this year amid challenges
in market conditions that are further
impacted by the Coronavirus (COVID-19)
outbreak, has led to banks and financial
institutions lowering their rates. Moving
forward, homebuyers may secure loans
at lower interest rates and this provides
savings in their monthly repayments.
• However, potential buyers should also
have clear objectives on their desired
properties: the purpose of purchase
(own occupation, rental income /
investment or capital appreciation,
etc.); location preference; property
type, etc. Buyers may obtain a preapproved
loan prior to property hunting
to help them in setting their budget.
With clear objectives, the property
hunting process will be more efficient
and effective.
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