7 Factors To Consider Before Buying A New Launch Condo
Many exciting new condo launch 2020 projects are in the pipeline to serve residents and even investors. However, certain factors are imperative in selecting new condos. We look at the 7 most important factors we have to consider to make fruitful decisions.
Surrounding Property Value
The property valuation of the condo can be assessed in many certain ways. One way is to check with IRAS on the property valuation. But you can also check the value of the nearby condominiums and HDB flats and other buildings on their valuation as well.
URA future master plan
The URA has a very able masterplan for the region around the new condo launches. The most common infrastructure that must be considered is the MRT station being situated around the vicinity.
A condo located beside the MRT station usually costs approximately 5 times more expensive than those that are not that near. Besides the MRT, are there any good schools, including institutions, shopping malls, expressways, parks and other places of interests nearby?
That is why a good URA masterplan will help to reveal not just proposed developments in the pipeline but the timeline of it as well.
Amenities and facilities
Amenities and facilities are different, though they may have almost the same meaning. For amenities, they mean unit in-house available such as hair dryer, air conditioner, internet access, bath tub etc. For facilities, they mean swimming pools, gym, shops, sauna, playground etc. The more services the condo provides, the more expensive and valuable it is.
The market timing of the real estate is another important factor when considering to buy a condo. It is a wise decision to check the current situation of the real estate market – is it a peak market value when you are buying that condo? If it is, then you may be paying more than what it’s worth. So a better general rule of thumb is to buy when the volume of transactions gets higher while the price stays the same. Do look out for the news if HDB is releasing new ECs as this may signal the demand for the upmarket so that the prices will lift higher in no time.
Capital appreciation is separate from the market timing of the property. It is important that the condo must appreciate its price and it can only do so if there is a sustainable demand and a supply shortage. Acquiring condos in relatively undeveloped estates seems to be more beneficial in terms of pricing and appreciation potential. The population can grow at a much faster pace, leading to shortage of new developments of condo launches in those young estates. But when these young estates mature, the condos you have acquired will definitely increase in value.
Freedom of space
Landed residential properties, such as semi-detached, terrace houses and bungalows, are spacious and large. Condos, on the other hand, are like public HDB flats – they are limited in space in terms of floor area. Indeed, small spaces are also possible for raising a family.
Yet, there’s still freedom of space available for selection.But you have to select the correct unit type for your condo lifestyle.
Generally, it’s easier to buy a 4-bedroom unit than to get 2 separate suites of 2-bedroom. It’s also more cost-efficient to do so. Also, there are new developments that feature balconies that are designed like terrace houses type and you can use them to expand the floor area.
Building and unit maintenance
Maintaining the building and units is important and it is a factor to consider when buying properties. A monthly maintenance fee is chargeable to upkeep not just the facilities and amenities but the individual units as well. You need someone to clear the rubbish trash regularly or else unpleasant things happen for sure. Always check the monthly maintenance fee when buying the unit. The usual rate ranges about $200 to $300 monthly. Luxury condos can cost $1000 a month.
Many factors must be taken into consideration when getting a new launch condo unit for yourself. They bear a very important impact on your purchase. You not only wish for a more comfortable and conducive environment for your living needs, but also need a sustainable price appreciation in future so that your property does not lose its value – meaning that you do not lose your investment money after all. Think wisely before you make your decisions in getting a condo always.