Condominiums are arguably the most desired type of housing in Singapore because of the limited land area. It’s the high-end condos or the more affordable units, investing your hard-earned cash on these properties demands utmost knowledge to steer clear of costly blunders and dubious judgments.
Investing in a new condominium in Singapore can be an overwhelming experience. To start with, condos don’t come cheap. Based on the amenities, location, and type of property, these properties including Parc Esta Condo and Treasure at Tampines Condo Singapore can fetch top prices. Moreover, you must factor in the spot cash expenses you’ll have to settle including the Option to Purchase, Stamps, Sales and Purchase Agreement, Legal Fees, Taxes, Valuation Property and many more.
For the majority of Singaporeans, investing in a condo is an important decision that involves a loan they will spend many years paying off. Here are some important tips to take into account to make the right purchase.
Location is always important when looking at where to live or stay. Singapore is partitioned into five regions – North, South, West, East, Central and North East. Each of these neighbourhoods boasts of its personality and character. Depending on your tastes, whether you like a peaceful or bubbly neighbourhood, located within the city centre or outside the city, choose a condo in your desired neighbourhood. Accessibility to shopping malls, food centres, and supermarkets is also important. Similarly, check whether the neighbourhood has education institutions within short distance especially if you have school-going children.
Another aspect to look at when buying a condo in Singapore is to make sure it’s close to the public transport. Is it near MRT station, expressways and LRT stations? Is commuting through a public transport system more convenient compared to driving your vehicle? You’ll have to check the distance between the property and the nearest train station. For example, the Mayfair Gardens Condo in Singapore is close to the King Albert Park MRT which makes it a convenient home to have.
Remember, property brochures often claim that a train station is just a walking distance or ten minutes walk away. To a fit 30-year-old, a five-minute walk to a nearby train station may certainly be in walking distance. Nevertheless, the same may not be realistic to an elderly home buyer, or a person who expects to shop at the grocery store accompanied by a young child. Therefore, do the actual walk to the train station to have a sense of its actual accessibility.
Analyse the nearby property prices
It does not matter what the sales agent says about the condo going for a ‘good price’. It’s important that you check out nearby condo units and their prices. Using the URA (Urban Redevelopment Authority) transaction history, you can look up prices dating back a few years. Bear in mind that some supposed discounts bring the condominium down to the average price. For instance, a unit may be priced at S$2 million, but with a 15 per cent discount.
Regarding property financing, banks can loan you a maximum of 80% of the value or price of your condo. This is referred to as the Loan-to-Value ratio. You can pay the other 15 % through cash or your CPF Ordinary Account funds. The last 5% should be paid in cash.
Make sure you get exactly what you see
Just because you see quartz stovetops and glass splash-backs in the show condominium unit, do not assume the real property will have all these fittings. Check with the developer first about the actual fittings and materials to be used on your condo. The same applies to floor material. The type showcased in the show unit may be a lot more expensive than the version you’ll get.
For partially finished units, determine whether any provisions are allowing the developer to replace these furnishings. In some cases, the expensive kitchen cabinetry that is supposed to be included in the unit can be replaced with something cheaper and of less quality, with the purchasing agreement openly permitting such contingencies.
The process of buying a new condominium in Singapore is less overwhelming if you have the right information before you jump into one of the most blooming property markets. The above-mentioned tips should help you make the right decisions in investing in your future home.