7 Things Buyers Of New Launch Condo Should Avoid
Do you wish to buy new launch condo in Singapore very soon? Condo prices are always on the appreciation even when the economic downturn has yet to be over. Buyers are still penetrating the condo market in Singapore. Amidst the next stage of cooling measures and low interest rates, buying a condo can still be a very tricky business, especially if it is a new launch condo. So if you’re ready to take out a housing loan to get your next condo in the property market, do read the mistakes below to find out what you should do to avoid.
Discount prices at face value
Is what you are getting the real deal for your condo? Actually, there may be lots of early bird discounts. However, they may not be guaranteed to be the best prices. One instance of this case can be found at Jervois 38 which had steep fire sale discounts in June 2020 because of the due date of the Additional Buyers Stamp Duty (ABSD). There was a huge pressure when the condo nears the deadline. The ABSD fell in a range between 13 and 24% and after the 1st phase of launch, it would be higher. It is noteworthy that the developer can even raise the asking price by 30% and then discount it very heavily at 25%.
Neglecting maintenance costs
Many buyers of new condo launches fail to take the maintenance costs into consideration actually. It will be not wise to do so as maintenance costs are heavy factors in living in a condo. The cost of maintenance is not so small with a typical figure of $400 monthly for most condo developments. If you are getting a higher end condo in the prime area like Marina Bay or Orchard, expect your maintenance costs to exceed $1,000 monthly.
The maintenance costs of the new condo launch can depend on the facilities. It can also depend on the share value of your unit. Generally, small and boutique condo developments incur much higher costs as a smaller number of households share the maintenance costs.
Neglecting future developments
When you are researching on the condo new launch which you are buying into, make sure to know what future developments are around it. You can do this by checking the URA Master Plan to find out what projects are upcoming. Future residential developments in the region are key because it may mean competition to you as a landlord when it comes to your turn to resell, or even to rent out.
An illustration can be made in a very high tower that appears in front of your condo, will your view from the window be blocked? You might be able to view the lake from your window now but if a taller building is built at your front, how much frustration and regret are you going to get?
But fret not too much, amidst all the construction noise that you may have to bear for the next few years, you may enjoy a future rise in value. The current condo price has not even factored in the future amenities also.
Not considering distance between facilities and unit
Though this is not apparent in a showflat, it will be in the new condo development’s layout. Thus you must check how far is your interested unit from the swimming pool or gym, and other facilities.
It is not about getting to the facilities in quicker time. You will be more exposed to noise if you live in lower or ground floor units. However, if you live near the swimming pool, you will expect a more noisy environment during weekends and school holidays. If it is near the BBQ pits, you will expect it to be more noisy during night time, especially Friday or Saturday evenings.
If you have to choose between 2 wide units similar in space, you may consider the condo that is closer to a facility of your choice. But be mindful of what trade-offs you may have to face.
Not considering distance between MRT and unit
The condo may have many gates of entrances and exits, each with access card entry. Even visitors can be accompanied by residents to use the access card to enter the condo premises. Some blocks have better position than others. Units that are near elevated MRT tracks and face them may experience more noise disturbances when the trains roll past the condo on the track. Try to pick the unit with the block furthest from the MRT track.
Placing deposit before loan pre-approval
It is advisable to get a banker’s advice on how much loan you can take before you start shopping for your condo. This will determine how much you can borrow from the bank to finance your condo, of course taking into consideration your job monthly income.
Always remember to know that the deposit you place for Option To Purchase (OTP) is non refundable afterwards. Even if you are unable to secure the loan, after placing the deposit, the refund is only 75% of your initial deposit.
The bank’s Approval In Principle (AIP) will tell you which are the units you can afford so that you will know what floor plan and view you will get out of the suggestion.
Checking value of surrounding amenities
By checking what amenities are in the vicinity of your condo, you must know what you like to do outside home.
Do you only like hawker food? If so, getting a condo unit near Orchard shopping district may be a bad idea.
But even if you love shopping so much, if you need daily necessities, a condo next to the shopping mall even in Bedok is suffice. It will be convenient enough for you to get a unit in that condo to do your daily shopping there.
Most often, parents with young children like to stay near schools. But for singles, the proximity to schools may result in heavier noise from the school bus and children at play.
Considering all the above things when getting a new condo launch, some of you may have further questions to raise. Are you ready to buy new launch condo in Singapore, then contact us out for more info here