Is Buying A Condo A Good Investment
Investment In Property: Buying A Condo For Investment
Making investments in real estate are made in many different areas- commercial or residential usually. Even among residential, there are private residential investment types of different kinds. The most common kind is the condo investment.
From the very first condo, Beverly Mai, built in Tomlinson Road in 1974, Singapore went on to have more than 200,000 condo units by the year 2020. The condo market takes the housing market by storm as it makes property developers successful.
Is buying a condo a good investment for you? Well, it can or cannot be, depending on a whole range of factors – interest rates, market timing, your own personal needs for living in a condo. There are more to it like housing loan and your personal budget for the investment.
We decipher the reasons and myths about the suitability of the condo investment for you below.
What House Buyers Should Look For
The housing loan and budget are 1 main factors to look out for when considering your next property investment, especially when it comes to condo units.
Freehold or Leasehold?
The choice is dependent on your personal budget and the estimated length of stay. For freehold properties, you can stay indefinitely, and this makes it easier for financing though you have to pay more for it, compared with leasehold.
Investing in condos
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.