Getting a new home is a great choice because there is no need to undertake expensive and messy renovation work or repair the existing plumbing and electrical wiring. As the place is ready for occupation, the key to the front door is given to you. All you have to worry about is where to place the furniture.
Greater flexibility
Buying a newly completed home is easy because it allows you the flexibility in decision-making. Home seekers who are not in a rush can buy during a launch or during construction; but of course for those who want to move in immediately, the completed project is ideal as there are usually some units left over. These units are sold directly by developers, which means you get a brand new unit and there are usually a gamut of choices on various floors as well.
Affordability
There are other benefits too, such as affordability. The selling price of some new projects can be lower than resale homes, which means that you are getting brand new facilities at a better price and you don’t have to spend more money renovating the place.
Property can be a worthy long-term investment. But like all investments, research should always be done. In the right circumstances, your investment can grow in value. Anecdotally, people have sold their units even before the apartments are completed. Others choose to use their property as rental units, and they could see returns almost immediately. So where can you buy a newly completed home? There are many such projects being sold all across Singapore as we speak. Many large developers have stocks of developments that are ready for occupation. So if you’re keen to purchase a new home and would like to move in as soon as possible, then you might want to act now.
BUYING A PROPERTY THROUGH AN AUCTION SALE
There are 3 major advantages to buying your property at a property auction. They include:
- Better investment opportunities. Interested bidders are given the opportunity to buy investment properties which could have been offered to a selected number of buyers through a private tender or private treaty.
- More organised. Legal documents pertaining to the sale of the property would be available before the day of purchase for the buyer’s inspection. Furthermore, the contracts of sale can be signed and can exchange hands on the day of the property auction.
- Hassle free. All offers on a property would be done publicly, allowing buyers to be aware of what others are offering. There is no need for the buyer to worry about any sudden surprises cropping up at the last minute, such as the seller backing out.
Buyers do not have a particular procedure to follow unlike sellers, but there are several things that buyers should keep in mind when entering into a property auction, such as:
- Buyers must ensure there is enough money to make a deposit if the buyer is successful in a bid. A deposit of 10% of the sale price is expected on the day of the property auction. The other 90% would need to be paid after the completion of sale, which is around 10 to 12 weeks. Payment can be made by cheque.
- Buyers must secure a loan before the property auction date. Take into consideration the time it takes for a loan to be approved, because backing out for not getting the loan in time could be costly!
- Looking at similar properties in the area and getting their price range prior to the property auction. This would give buyers a reasonable price estimate for the property, so buyers won’t feel like they overpaid.
- However, be careful before making a bid as it’s easy for buyers to get caught up in the bidding frenzy and overbid. Buyers must set a reasonable price, one that’s affordable and stick to it. And if there are many buyers vying for the same property, hold out until the bidding slows down. This way, the buyers won’t be constantly outbidding each other.
OTHER INVESTMENT TIPS TO LOOK OUT FOR :
1. Location
It’s important to reiterate how important this is. The location will determine a property’s price, risk and returns.
It’s important to reiterate how important this is. The location will determine a property’s price, risk and returns.
2. Developer’s philosophy and standards
Does the developer have a track record of producing quality products? If it’s a new project, do your homework and tour previous developments built by them. Don’t be overawed by a big name.
Does the developer have a track record of producing quality products? If it’s a new project, do your homework and tour previous developments built by them. Don’t be overawed by a big name.
3. Management
What level of oversight will be provided by the management of the development? If you’re staying in the property as an owner-occupier, this is less critical, but as a landlord, especially in absentia, it’s vital.
What level of oversight will be provided by the management of the development? If you’re staying in the property as an owner-occupier, this is less critical, but as a landlord, especially in absentia, it’s vital.
4. Future prospects
For property as an investment, the bottom line is how much income it can generate for you. Again, research the market, getting different opinions on what the capital appreciation and rental returns will be for this property.
For property as an investment, the bottom line is how much income it can generate for you. Again, research the market, getting different opinions on what the capital appreciation and rental returns will be for this property.
5. Practicality / Design / Layout / Usability / Desirability
Who is this property going to appeal to. While its location is fantastic and the lower floor flats had their own hot tubs, the extremely limited floor space would make it unsuitable for any but childless couples and singles. Always consider who would live here before you purchase?
Who is this property going to appeal to. While its location is fantastic and the lower floor flats had their own hot tubs, the extremely limited floor space would make it unsuitable for any but childless couples and singles. Always consider who would live here before you purchase?
6. Comparative prices for comparable product
If you can, try and see how similar properties in the area have done in the past in terms of price per square foot and capital appreciation in order to compare and work out whether the property is an attractive investment opportunity.
If you can, try and see how similar properties in the area have done in the past in terms of price per square foot and capital appreciation in order to compare and work out whether the property is an attractive investment opportunity.
7. Connectivity / Convenience – Transport links are often the biggest drivers of value. Research has shown that condos near MRT stations often gain the most capital appreciation in Singapore.
8. Security
Less of an issue in Singapore, where crime rates are amongst the lowest in the world, in Malaysia and Indonesia – while crime levels are perhaps overstated by the media – the range of a development’s security options – gated communities, 24-hour guards, first-response alarms, etc – are an important factor.
Less of an issue in Singapore, where crime rates are amongst the lowest in the world, in Malaysia and Indonesia – while crime levels are perhaps overstated by the media – the range of a development’s security options – gated communities, 24-hour guards, first-response alarms, etc – are an important factor.
9. Facilities
A property’s facilities do add value to a unit – a landed property with a pool, for example, can add around 8% to the value of the property – while many condo facilities now include gyms, spa facilities and games rooms.
A property’s facilities do add value to a unit – a landed property with a pool, for example, can add around 8% to the value of the property – while many condo facilities now include gyms, spa facilities and games rooms.
10. Rentability
A rented property can produce a greater passive income than simply investing it in a bank but you need to ensure that is attractive to renters.
A rented property can produce a greater passive income than simply investing it in a bank but you need to ensure that is attractive to renters.
