QUOTE(annoymous1234 @ Sep 29 2021, 09:28 PM)
My point is most first time home buyer don't have enough cash to afford paying the downpayment. Why else do u think they go for project instead of subsale then. Of course everyone knows, u save the interests if u pay more downpayment, some even took only 50% loan. But u tell me how many mid or late 20s first time home buyer can afford that 10% nowadays? Out of 10, how many?
Btw, my question is still remains. Apple to Apple comparison, new project vs new project.
lol your question on downpayment is really a chicken and egg issue. Ask yourself first how come can buy without downpayment? Because developer markup right? So if a property is originally 500k, developer markup to 550k to cover 10%.
The issue now is most projects markup to 20-25%. So instead of getting a loan for 450k and saving up 50k for downpayment, the SNP price is now 625k (25% markup). So any new development will use the 625k as baseline which artificially drives up the property prices further. The next development will then sell at 625k and after markup is 780k. Each new cycle means new buyers have to fork out 20-25% more downpayment for new properties. And this markup cycle has happening since the 2009 DIBS era hence chicken and egg.
Of course for agents like yourself this doesn’t mean a thing since your only concern is closing a deal. But for people like myself who just want to buy a house without it being used as a tool for speculation, I guess I was born in the wrong time.
Btw I have pointed why your criteria is irrelevant, a property is a property regardless whether new or old lol.