Secondary market comes to rise in the past few years as there investors and lenders buy and sell subsisting mortgages or mortgage back securities. Between January and July, the secondary market transfer volume declined over 30 percent since the last year. On the other hand, the average value of the apartments increased by over 14 percent. For the additional mortgage lending, these markets provide a large number of funds. It is a resale market place of loans.
Buying an Apartment in Secondary Market
When you try to find the latest ready properties in Dubai secondary market, it is necessary that you should be satisfied with what you invest in. Sometimes, the condo is completed and often fully furnished too. You can see all of its advantages and disadvantages. Even the surrounding infrastructure is determined, and you can get to know about the living standard of the area in advance from neighbors.
Why should you buy an apartment in the Secondary Market?
Even considering all the odds with one another, Dubai’s property is for sure, throwing up all the numbers and trends over. The main advantage of buying apartments in the secondary market is that purchased flat is immediately available to you.
Apartments of the secondary market:
The individual sellers on the secondary market have finally come into their own after a year. It has all done where the developers reigned over the market with aggressive payment plans. All other incentives for off-plan properties were also given this year. As compared to 2017, the developers have exhausted all of their off-plan incentives and off-plan launches. This is being said to be scaled back. The end-users are now keener to buy a finished product, so they are purchasing secondary market-related properties a lot.
You can get premises in densely built-up, correctly communicated areas of the city. When buying an apartment, you have considerable freedom of choice. However, one of the facts that most of you are aware that the residences of the real estate market require renovation, which can cost you. There are some buildings with poor technical conditions, and inadequate infrastructure like sewerage, problems with heating and electricity. It requires a higher maintenance cost related to the presence of a renovation fund.
You need to be very observant when choosing secondary market apartments. Plus, keep in mind the tax on civil law transactions in the amount of 2% of the market value of premises. However, some buildings provide excellent quality apartments, too, which may also not require renovation.
Prices of apartments:
Price is one of the most significant factors to be determined when choosing a flat or an apartment. It is evident that apartments from the primary market are more expensive, but it is not that easy. Local factors also affect the price other than just the technical condition and the building.
There are some places where situations are reversed, the price of secondary market apartments are much higher instead of primary market apartments. For example, in 2018, a flat from the secondary market cost 1044 PLN, which was more than a first market apartment costing 1000 PLN.
For choosing the right secondary market apartment, you will need an experienced real estate agent who will help you in doing a detailed value valuation. It requires excellent knowledge of the market and local conditions that affect the price. Consultancy is especially essential when you are buying an apartment for investment. Even if you are planning to earn rental from the property you are going to buy, you will require a consultant who knows the demand and knows the area which is accessible for apartments.
The secondary market properties are highly preferable as their off-plan payment requires a minimum of 30 percent cash during the construction stage. And the down payment is only 25 percent if the end-user decides to buy the secondary market property with a mortgage. Most of the buyers of the secondary market are the ones who already have their properties, or they do that for investment purposes.