Having met many buyers in my line of work, I am often asked some common questions such as “is it the right time to enter the market?” or “Where should I buy?”
Therefore I decided to write this blog post so that it will benefit even more readers.
Here are my 3 tips on what you need to know before buying a condo. This can be resale or new launch condo in Singapore.
Tip 1: Own Stay or Investment?
This may sound like common sense. But you will be surprised how many clients are actually confused over their buying motivation in their purchase of a property in Singapore.
Honestly, if you do not know why you are buying a condo, chances of you succeeding in getting that dream home will be light years away.
As experts say, clarity is power. And the clearer your buying motivation, the easier the search for that dream condo becomes.
Often times, buyers do not know the difference between buying for own stay or investment
“Jayden, I am buying for investment but the size must be of above 900sqft, balcony must be this big, room size must be regular, tenure must be FH cannot be too old, Location must be good and near MRT, no bay window or any waste space, price must be very cheap best is $7XXK-$8XXK”
Usually I would politely reply my clients that such condos do not exist in Singapore. Just like how there is no perfect human being in this world as we all have our strengths and weaknesses, similarly there are no perfect properties in Singapore whereby it can fit all our requirements.
For own stay, it is more of our personal feel and liking to the unit (for e.g. some people may prefer waterfront condo to a city living condo) according to the budget which we can afford. For investment, the considerations in term of priority are totally different.
Tip 2: Total Debt Servicing Ratio
Typically if it comes to investment, the crucial factors to consider are taking into consideration of our Government policy like loan restriction, Total Debt Servicing Ratio (TDSR).
The introduction of TDSR has completely changed the whole property landscape of Singapore. The emphasis from now on is to move away from the traditional Price-per-square foot (PSF) mindset to absolute quantum as the authorities are tightening bank loan policy.
Hence it is important to have the right entry price which will not limit our buyers’ pool in future. The last thing you would want to happen is limitation of buyers who can afford the investment you would like to sell; which may result in you facing the prospect having to slash price in order to sell it off.
Tip 3: Demand vs Supply
In a land scare city like Singapore, with strong economy and governance, our property prices have seen exponential growth over the decades.
The question is which property should you buy?
It makes more property investment sense when you buy into an area where the demand for housing outstrips the supply.
Please share if you find the above tips to be useful or contact me @ 9146 8138 for more tips to lookout for when it comes to property investment.