A Guide to New Homes vs Sub-Sale Homes

Buying a new home is an important life decision. Learn about the differences between buying new homes and sub-sale homes before buying your next home!

Looking for a property?

Fret not! Here’s a guide for you readers who are planning to buy a property, be it a new home or a sub-sale home.


A new home is where you are the first legal owner of the said property, while a sub-sale home is a property that is previously owned. Usually, a new home is purchased directly from a property developer or it’s agent while sub-sale homes are purchased from the existing property owner, be it an individual or a company.

So what are the pros and cons of buying a new home as compared to a sub-sale home?


The Pros:

1.Variety on Payment Terms

To attract potential home buyers, property developers tend to offer a reduction of the deposit sum that buyers are required to pay for the new home purchase. The standard deposit sum of 10% may be reduced to as low as 1%, thus reducing the total transaction fee.

2.Defect Liability Clause

If you are buying a new home, the Sales and Purchase Agreement (SPA) typically includes a defect liability clause for a period of 18 or 24 months (whichever is applicable). This allows the buyer a window period to get any defects on the property repaired at the developer’s cost.

3.Freedom of Expression

You have all the freedom to customize the new home according to your wants and needs. Of course, renovations should accord by the house rules set by the Management Corporation or Residents Association, if any.

4.Everything is New

Everything is brand new, from ceiling to floor! You will be less worried about overall home maintenance for a new home.

The Cons:

1.Delayed Delivery

New home buyers will have to bear the inherent risk of delayed delivery of the purchased property, especially if the property is still under construction upon purchase. In such instances, you as the new home buyer will be compensated according to the terms of the SPA.

2.Abandoned Projects

You probably have heard news and stories about how some developers go bust and the development (along with your new home) is infinitely delayed. If it happens you still have to service for the loan that you have obtained from a financial institution. This is an inherent risk that you will have to bear until the completion of your home.

3.Pricier Homes

As with anything new, new homes comes with a heftier price tag as compared to a sub-sale home. This may be contributed by factors such as rising land costs.


The Pros:

1.Better Room for Negotiation

Dealing directly with owner-sellers tend to give home buyers better room for negotiation in terms of the purchase price, home furnishings and repairs, as well as other contractual terms and obligations.

2.What You See is What You Get

You have ample chance to inspect and inquire about the sub-sale home on sale before making a purchase. This includes getting to know the existing neighbourhood, facilities, traffic conditions and etc, allowing you to make a more informed decision.

3.Quicker Transaction

Since the property is already built, the transaction period is usually shorter for sub-sale home purchases, especially when all the necessary legal paperwork and loan documentation is in place.

4.Old is Gold

Many sub-sale homes are located in more mature neighbourhoods within close vicinity to a variety of eateries, shops and offices. Connectivity is usually better too!

The Cons:

1.Higher Maintenance Cost

As with all older properties, there may be rusty pipes or bad wiring that require repairs and maintenance. Perhaps a new coat of paint too.

2.Higher Initial Cost

It will be unlikely to chance upon deposit rebates for sub-sale homes. Also, be prepared to fork out some moolah for the necessary legal document fees.

3.Less Facilities

Older homes tend to have less facilities within the common area or the residential area as compared to new homes. Well, life used to be much simpler back then!

4.Older Design

Depending on the age of the sub-sale home, the design of older properties can be out of date and may need some structural change and refurbishing.

There you go! Have fun with house hunting!!

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