Buying Your First Private Property
Things To Consider
Many people purchase private property as an upgrade from their current homes or as an investment vehicle to collect rental income, and perhaps to sell it off for profit at a later date.
Here are a few things to consider before buying your first private property:
1) Your eligibility to buy private property
Singaporeans who already own a HDB flat, DBSS flat or Executive Condominium must first fulfil the Minimum Occupation Period (MOP) to be eligible to buy private property. The MOP is five years and you will be required to stay in the flat throughout the duration.
Meanwhile, permanent residents (PRs) will be required to sell their flat within six months of acquiring private property. Those who currently own private property or a Housing and Urban Development Company (HUDC) flat are not subject to such restrictions.
2) Your housing budget
Don’t look at property that costs way more than what you can afford. Instead, figure out your budget and work within it.
3) Your property’s location – central vs non-central homes
Properties located in the central or are in mature estates typically command higher prices as they tend to boast greater connectivity and a wider array of amenities like schools and shopping malls.
On the other hand, mass market condos or properties located in non-mature estates are usually more affordable. The trade-off is that they’ll likely be less accessible and you’ll have to fork out slightly more on cab fares if you don’t drive.
4) Amenities and connectivity
As well as the geographical location of the property, it is important to consider the type of amenities and public transport modes surrounding the area. What kind of amenities are a must-have for you?
5) Present and future infrastructural planning
It’s not just the present amenities that matter, but future ones as well. Government plans concerning schools, hospitals, recreational hubs and public infrastructure such as a new MRT station, can have a potential uplifting effect on home values.
So, when shopping for a home, it pays to study the infrastructural the long-term infrastructural planning in the area before making a commitment. Find out if any new public, commercial or residential developments are planned and consider how these additions might enhance the desirability of properties in the surrounding area.
BOOK A FREE APPRAISAL
We would love to help you get the most out of your property.
Should you be thinking of selling, or would simply like an update of where your property sits in today's market, book a non-obligatory discussion with one of our TemasekClass consultants.