Before you plan to a real estate purchase, you will have to specify your reason for purchasing a property initially. There are only 2 types of purposes for having a residential property in Singapore: It’s either buying for own stay or investment. There is a difference between purchasing a condominium to stay in versus purchasing one for investment.
If you plan to live in it yourself, your main condition is size, budget, and location. For instance, if you’re an individual, it is logical to buy a small studio apartment. Considering when you’re a newlywed, you and your partner might consider for a modest sized apartment that you can purchase with your combined . If you decide to have more kids and are making enough income, you may desire a bigger flat with a more bedrooms.
If you’re having a apartment as an investment, your main feel is the rental yield that the property can achieve for you. You do not genuinely need to worry about whether you will be decent in your purchase; instead, you will need to get likely tenants or buyers that prepared to meet your price.
Today, it’s a Buyer’s Market
We expect mass market apartment – condo in the Outside Central region (OCR) to remain popular. This trend is fuelled by the continued availability of credit in a low interest rate environment, along with developer’s thoughtful pricing schemes.
“A buyers’ market is a period in a property trend where a purchaser is in an advantegeous situation to purchase a flat at a discount or at a fair market price”.
Developer’s cautious pricing strategy
With the possibility of slower sales as homebuyers are more amid the stricter loan prerequisites, property developers will be more guarded in their acquisition programmes, particularly in the private residential region. Developer’s pricing scheme has to be review in view of the cooling measures and the TDSR framework.
Interest rates are extraordinarily low in Singapore
The latest interest rate of below 2% is unique; peculiarly when you regard that just across the causeway; it is already at 4.5%. Due to the latest debt impasse in the US, we counter that the interest rate will retain to be modest for the near to mid term. For example, a buyer who requires a $600k loan at 1.8% interest intends that the interest constituent is only $900 per month – the reduction on interest can be solid over the years.