Pre-Sale Property (Unconstructed or Under Construction House)
- Lower Down Payment Burden: The initial payment is usually just 10% of the total price, with the remaining 10%-20% down payment to be paid in installments over 2-3 years based on construction progress. It’s suitable for buyers who have stable income but insufficient cash on hand.
- Flexible Layout: During the construction phase, you can request modifications such as moving partitions, relocating plumbing and electrical positions, or changing building materials, saving costs that would otherwise be incurred during future renovations.
Disadvantages & Risks
- Unpredictable Quality: Only imagination through sample houses and design drawings is available; the final product may not match the contract or have poor construction quality (e.g., water leakage).
- Construction Schedule & Financial Risk: If there are sudden changes in construction speed or personal financial issues, it might lead to being unable to make payments, causing project discontinuation.
New Built House (Completed but Uninhabited Property)
- More Sufficient Down Payment Required: At least 30% of the total price as a down payment is needed, and once the contract is signed, all procedures are usually completed within about a month before taking possession. Preparation time is extremely short.
- Layout Restrictions: The developer provides predetermined ceiling, floor, walls, kitchen fixtures, and bathrooms. If you don’t like the layout, significant costs will be incurred for modifications.
Advantages
- Clearer House Condition: Although it does not show long-term usage signs like used homes, at least the layout, lighting, and basic quality can be inspected, providing a sense of security in purchase.
Used Home (Old House with Previous Owners)
- Highest Down Payment Threshold: Besides needing to prepare over 30% as down payment, if the house age is too old or located in remote areas, the loan ratio from banks might be low, requiring more cash preparation.
Advantages
- Most Transparent Conditions: Issues like water leakage and wall cancer that have been revealed during actual residence can serve as negotiating points for price reduction. However, a certain amount of basic maintenance (e.g., pipeline replacement, dealing with wall cancer) is also necessary to prepare.
- Stable Living Functions & Environment: The surrounding living functions, neighbor quality, and community management status are already established, making it easier to investigate and observe.
Summary Table of Advantages & Disadvantages
| Comparison Item | Pre-Sale Property | New Built House | Used Home |
|---|---|---|---|
| Down Payment Burden | Pay in installments, least pressure | One-time payment, high pressure | One-time payment, highest pressure |
| Layout Adjustment | Can be customized, highly flexible | Requires rework, high cost | Need demolition and reconstruction, large project |
| Clarity of House Conditions | Worst, only with schematic drawings | Can see the house on-site, relatively accurate | Most clear, flaws easily visible |
Tips from Advisors:
If you are a first-time buyer with less cash available, pre-sale properties can be a good choice. However, carefully select reputable developers and ensure all commitments are in writing. If you value real-life functionality and wish to move in immediately, used homes are recommended. Remember to thoroughly inspect 'raw areas' (e.g., bathroom ceiling pipes) to prevent water leakage disputes.