Buying and selling a property is, without a doubt, the biggest purchase most people will ever make and it is one that can be quite stressful. One of the main reasons people enter the property market with so much trepidation is the lack of a plan to purchase a property. Most people start their journey looking at available properties online and while this may be a good place to start, it can also result in even more confusion and unease.
Before you start looking at real estate in Singapore, talk to a qualified real estate agent. Jimmy Sum Real Estate Agents are fully qualified and have a wealth of local knowledge to help you navigate your way around the property market in this bustling city. You should also do your own research and part of that should include asking your real estate agent anything that may not be clear to you.
To help you get started, we’ve put together this series as a guide for local customers looking at purchasing real estate in Singapore.
Step 1: Understand Your Needs And Your Purpose
Purchasing real estate is not all that different to making any major purchase. The first step is understanding and determining your needs and your purpose. This is where you will answer your first question – Are you purchasing a property as an investment or as a home for you and your family? Once you get this question out of the way, you are ready to put together a list of your needs.
Are You Considering to Buy a Property for Own Stay?
Home is where the heart is and this makes purchasing a residential property for your family an enormous financial and emotional decision. There are a number of factors that need to be considered when purchasing a residential property in Singapore. If this is your first home purchase you may be asking yourself – Am I buying for own stay or investment? Should I buy an HDB or a Condo? Depending on your financial situation at the time you are ready to make a purchase, an HDB (Housing Development Board) is a great place to start with a limited budget and you are given some CPF grants if you are local Singaporean or Singapore Permanent Resident. However, buying a condo in Singapore is also a great investment. Even if you do plan on living in this condo yourself for a few years, you can always be certain that you will be able to re-sell your condo and upgrade in the future.
Should You Upgrade from An HDB To A Private Condo?
Perhaps you already live in an HDB and you’ve decided it is time to upgrade to a private condo. Most people will start off in a smaller home when they first enter the real estate market but will generally upgrade several times during their years of active employment. HDB housing is generally more affordable and these properties are usually closer to amenities such as public transport and some public schools.
Buying a condo in Singapore, on the other hand, is not just a home purchase. It is also a good investment option due to the potential for higher capital appreciation in comparison to HDB. Some people also prefer to live in a condo as a statement of achieving something worthwhile in terms of financial and social standing.
What Considerations Do You Need For Your Family’s Convenience?
One of the greatest factors for families looking at buying a residential property in Singapore is the property’s proximity to reputable schools. In particular, young families with primary school aged children prefer to live close to good schools. Education is a high priority for most Singaporean families so living as close as possible to a reputable school is essential. Finding a condo within 1 kilometer to good schools in a family friendly neighborhood is great for the families.
Children aren’t the only consideration for families looking at purchasing a residential property in Singapore. Many young couples have elderly parents that they feel responsible for and although the parents may not live with them, these couples still want to live near their parents to ensure the can keep an eye on them. It’s not just a matter of caring for them either. Most local Singaporeans have strong family connections and living close to parents and grandparents ensures the younger generations have enough contact with the older ones.
Is Purchasing An Investment Property A Good Idea?
Real estate is always a sound investment, especially in a booming economy like Singapore’s. No one understands this more than the real estate agents at Jimmy Sum Real Estate and our agents understand the needs of property investors.
The first consideration when buying an investment property is location. Depending on the type of tenants you are hoping to attract, the location of your investment property in Singapore will determine the class of tenants interested in your property. As an example, corporate tenants will want to be in the CBD or very close to it, young families will look at renting close to schools and young couples want to be where all the best restaurants, cafes and clubs are.
Which Part of Singapore Is Ideal For Property Investment?
When it comes to finding an investment property in Singapore, you can be sure that your money is well invested in locations that have the capability to yield higher potential future prices of the properties. Do you know what the great locations for property investment?
Some of the good investment properties in Singapore are the ones that are already available. These projects are located in prestige areas of Singapore and feature stunning architecture with equally beautifully views. Best of all these new condominiums are close to some of the best culinary and cultural aspects Singapore has to offer.
Ideally, for investment properties, you can go for those of smaller unit types like one or two bedrooms where their quantum is more affordable and their rentability is much better than the bigger-sized unit types.
How Much Time Do You Have?
Keep in mind that the process of purchasing a resale condo takes about 12 weeks from signing the contract to taking possession, while it could take a couple of years to take possession of a condo in a new project launch. How long you are willing to wait will depend on you and your family’s circumstances.
Once you’ve established the reasons and requirements you have for buying a property in Singapore, you’re ready for the next stage of the journey and that is assessing your financial capabilities.
