Pre-sale homes are a relatively friendly option for buyers who are just starting to invest or plan their funds.
It is only necessary to pay a deposit of about 10% first, and the rest of the money is paid before the house is completed and the house is delivered, so the money pressure is relatively small.
In addition, the presale house belongs to a brand new object with a modern design, low maintenance cost, and high rental appeal.
If the house price rises during construction, you can even directly benefit from value-added income when you move houses.
But the risks of pre-selling a home cannot be ignored either.
Construction periods of up to two to three years may result in low loan valuations and need to compensate for gaps in the market;
Build quality, completion delays, and even the risk of failure are all potential variables.
In addition, policy or interest rate changes at the time of delivery may affect loan approval.
In comparison, the biggest advantage of real estate is “seen as income”.
Buyers can check the quality, layout and lighting of the house directly, and there is no problem with sample house defects.
The house can be rented immediately after delivery, generating cash flow immediately, and loan approval is more certain, since the bank credits the loan according to the existing valuation.
However, the entry threshold for the current house is higher.
Overseas buyers are subject to FIRB restrictions and in most cases cannot purchase second-hand homes and can only opt for new ones left by the developer.
In addition, current housing requires a higher amount of money at one time, and new homes in good locations are often coveted by local buyers.
If you're planning for the long term, want to lower your entry threshold, or want to lock in your “new home” with future value-added potential, a pre-sale home is a better option.
But if you value cash flow, want to rent immediately, and have enough money, an existing home can bring more stable income and certainty.
Simply put:
In Australia, more than half of overseas buyers opt for pre-sale homes due to friendly policies and high payment flexibility;
But the “immediate income” of an existing home is just as attractive as a stable cash flow.
The focus is on:
Do you have enough money? How much market changes can it withstand? Is your investment goal short-term rental or long-term value-added?
