Now that we have gone over some of the financials you would need to get in order prior to going on the hunt for a property, which brings us to our next point; how should you begin your property search?
One of the reasons we placed the “Assessment of your financial capabilities” before this chapter is because it is vital in determining what you can buy. You must begin your search based on your assessed loan amount.
Consider things like;
- How much can you loan based on a single name?
- Both names?
- Are there other options you haven’t explored yet?
It is critically important to first establish a concrete monetary sum you are willing to invest because if you don’t you might find the ‘house of your dreams’ sitting right outside of your budget. In that scenario – nobody wins.
Another important thing that needs to be mentioned is that by now you will have to determine whether this is for “own stay” or whether you’re buying as an investment. This will also dramatically change the parameters of what constitutes a ‘good investment’.
Throughout this chapter we will be talking about the different things you’ll want to be looking out for when deciding on the best property in Singapore.
Don’t go about it by yourself
While going “house shopping” might seem simple enough – there are so many things that homeowners or investors need to know in order to make their investment ‘profitable’. Do you know what the development plans are according to the Master Plan? This is just one parameter you need to consider before committing to any Real Estate Purchase in Singapore.
We recommend having a trustworthy Real Estate Agent in Singapore that knows the market and has experience. Jimmy-Sum is an award winning Singapore Real Estate Agent that has helped hundreds of customers find their perfect property – whether for investment purposes or to start a family.
Understanding the Difference between a “Resale Market” and a “New Project Launch”
There’s a reason Singapore Real Estate agents exist – the market changes constantly and unless you are passionate about real estate, you won’t know which way it’s going. For example, one of the important parameters you need to consider when making a large purchase comes down to whether you are thinking of re-selling the property at a later stage.
Suddenly, you have a host of other things you need to consider that apply to either preparing for a resale market and the difference between a new project launch.
Things to consider when preparing for a Resale Market
Ageing:
The first issue you’ll need to consider is that when you buy something – it doesn’t stay in its pristine condition. The wear and tear of tenants or your own familiar activities on the property will undoubtedly cause some damage. This will devaluate the overall price of the property. If you’re going to want to resell this will mean that you’ll need to fix it up.
Maintenance and Property Condition:
Considering that there is definitely going to be some wear and tear, it will be important to invest in fixing some of the major issues of the property to increase the value – however, there will be a cap within how much you could raise the value of a property. Newer properties will always have a “fresh appeal” compared to properties that have been on the market for a long time.
Capital Appreciation:
Next – if you are not the first owner of the property, you need to make sure how many other owners were there before you. Perhaps you are the 2nd or 3rd property owner. If this is the case – the amount of capital appreciation that your property is able to yield is significantly reduced.
Buying Resale to Rent:
Another strategy is to buy a “resale property” with the intention of turning it into a long-term rental. In this case, you will take roughly 12-weeks to take possession of the property. Once you have the property in suitable conditions to rent out, you could cover your monthly mortgage by 80%-90% through the collection of your monthly rent. For those looking to expand their investment portfolio in Singapore – this is an optimal option with relatively low risk.
Things to consider for a New Launch Project in Singapore
Warranties:
Compared to the resale market – New Launch Properties come with far less structural issues since everything is new. Additionally – these new launch properties come with a 1-year warranty from the days the keys are collected from the Developer. This means that if anything fails or breaks that is the responsibility of the developer – it will be covered by them until the warranty expires.
Higher Prices:
While there are a lot of advantages of investing in a new property launch in Singapore there is the disadvantage of price. Compared to “resale purchases” – these new launch properties in Singapore can be more expensive by 20% – 30%. Of course – this markup is typically because these new properties come included with many “bells and whistles” and convenient location to majorly transited areas.
Price Appreciation Advantages
Since you will be the first owner of the New Launch Property, you tend to benefit more on the price appreciation as compared to sub-sequent owners.
Do you have an EXIT PLAN?
Sometimes people buy to own for a long time – however, this isn’t always the case. Perhaps, you are planning to sell your property in the future, especially if you’re thinking about flipping a property.
In these cases, it is crucially important to have an exit strategy.
However, an exit strategy isn’t just useful when you are considering to “re-sell” the property – it can also act as the blue print for what to do next once you have found a long-term tenant for your property.
To do this, you’ll need to list your property on websites that will increase the odds of you finding either buyers or tenants.
Here’s a list of websites to consider:
These websites provide you with plenty of advantage either to shop for properties or to list your own – however, if you are not familiar with the real estate trends in Singapore – you might be faced with stiff competition.
It’s always best to get a professional to help you. Jimmy Sum is a reputable real estate agent in Singapore that knows the market inside and out. Let our team of experts help evaluate and establish the right strategy to buy your ideal property today.
Utilizing the Power of VR
Virtual Reality allowed realtors the ability to provide remote viewing to potential customers. This means, that instead of chasing all over the island – you can visit multiple locations without ever leaving the office. Utilizing Drone technology, we can show potential buyers the surrounding areas and utilizing virtual tours we give buyers the ability to experience a flat without ever setting foot in it.
This has become an even more important alternative especially during this viral pandemic we are all faced with. For more information, you can check out Jimmy Sum’s Virtual Tour options on the website.
What are important key factors when considering New Launch Projects?
Before we move onto the Procedures on buying a property in a resale market or a new launch property – we need to take a final gander at some key factors to consider when buying a new launch property.
- Reputable developer: One of the first things you’ll need to consider is the history of the developer. How long have they been in operation? What are some of the other projects they have been working on? Any complaints?
- Quality Finishes: When you view a property, it is important to check the quality of finish in each room to ensure the materials and workmanship are to the highest standard.
- How Smart is the Home: One of the key features these days is the “intelligence of a home”. The internet-of-things have become an integrated feature in real estate – most of the newest property launches contemplate these features.
Final Words:
In the next section, we’ll talk about Procedures involved in buying a new project and within a resale market. We hope that this previous chapter gave you enough information to think about when you’re considering to buy a new property. If you have any questions – be sure to reach out to Jimmy Sum and we’ll be more than happy to help you.
