It is surprising to note that even before the economy could take a sigh of relief, the prices of condos are already on a hike. Amidst the speculations regarding another round of cooling measures, the buyers are losing no time and scurrying into the market like there’s no tomorrow. If you are one of such eager buyers, then please consider taking a pause and before you take an action, confirm that you are following the right path.
After a careful survey, our team of experts has curated a list of common mistakes that buyers do. Read on to make sure you don’t fall for them and instead, sail swiftly in this field of property dealing.
1. Being aware of future developments
Imagine a situation wherein you buy your desired condo and in another few months, you find it being overshadowed by a recently developed 35-story building. That would hurt a bit, if not much, eh?
Similarly, if your condo is challenged by, let’s say, a mega project of over 1000 units, it won’t be a very pleasant experience. It can either give rise to uninvited competition or may create issues whenever you plan to resell the property.
Thus, it is important to be informed well in advance about the residential developments that are planned in the vicinity. It will not only give you an idea about the density or the height of future developments but will also prepare you to avoid compromises that may be made to your condo’s view and value.
But this doesn’t imply that these early bird developments lack advantages for being a good bet. For eg., opening up a condominium at a location that doesn’t offer any other amenity isn’t as bad a deal as it may seem. Once other projects start pouring in, the whole area can witness a boom in valuation.
Therefore, it’s imperative that before finalizing a purchase deal, you may consider looking at the URA Master Plan that gives you a sneak peek into what is coming up next.
2. Falling for apparently high discounts
Never judge a book by its cover- said someone who knew exactly how the market works. You really can not trust that the discounts given to early birds are always the lowest ones. There are many phases through which the range of discounts travel. One can’t disagree that to lure eager buyers, most developers hike the price by 30% and then offer a 25% discount which is as futile as getting nothing at all. After all, not every project is as authentic and consumer-friendly as the Canninghill Square Liang Court Enbloc.
Therefore, it is suggested that you don’t fall for these traps and instead, wait wisely for the right price to be quoted. Or you can alternatively try and obtain information about the prices of the properties surrounding the area. This will help a great deal in making sure you are getting a genuine discount.
3. Not being attentive towards the distance between your preferred unit and the available facilities
While you select a location, it is wise to comprehend, how reachable are the various amenities to that place. This doesn’t only refer to utilizing the facilities quicker, but also to you a further understanding of what suits you the best, before zeroing in on one particular location. For eg. a unit closer to childcare facilities, parks and schools may sound like a jackpot to one couple but if you are looking for something that involves minimum noise, then this may not be the correct choice for you. Hence, it is advised that you make selections depending upon how far is the gym, school, park, shop, pool, etc from your preferential unit.
4. Ruling out the maintenance costs
This is a common mistake made unknowingly by people while deciding upon condo deals. Most people tend to think that smaller condos will incur low maintenance costs which are, actually, the opposite of what happens in the real world. As observed in the past, most developments demand a maintenance cost of around $500 per month, whereas, in luxurious condos, this figure can go up to more than $1k per month. The actual calculation depends largely on the kind of facilities provided by the unit, along with other factors like the share value, the nature, and size of the unit, etc.
5. Depositing before securing a loan
Technically speaking, AIP is an agreement concerning the amount of money that a particular bank is willing to provide for the home loan. The policy states that if you make the deposit first and but then the application for AIP gets rejected, you may get a refund of only 75% of the amount you deposited.
Additionally, AIP also gives you a better evaluation of which units fall into the category that you can well afford.
Therefore, getting Approval In Principle from a bank is quite a must-do thing before you jump onto buying a property.
6. Not paying heed to how far is your block from the nearest highway or the train tracks
There’s no denying the fact that the face value of your chosen block is the most valuable asset considered while making a purchase. But other factors also hold relevance when it comes to investing a huge sum of money. One such factor is the distance between your unit/ block from the nearest MRT track or a major highway.
This is vital to check because units that are located nearer to roads or MRT tracks generally involve a lot of traffic noise.
Thus, if you don’t wish to be awakened by harsh honking or vibrating window panes, you must do a quick review of your immediate surroundings.
7. Not taking into account if the amenities provided suit your demands or not
Amenities mean facilities initiated for the user’s convenience. But what if the facilities provided are of no real value to you? Would it be fair to pay for them anyway? NO.
For instance, residing near a school would be advantageous for a parent while it may sound like a bothersome alarm to singles who don’t wish to deal with noise and traffic.
It is, thus, proposed that one must make an alert tour of what all facilities are being offered and if they suit your demands as well.