5 Reasons Why You Should Consider Investing In Singapore Real Estate
5 Reasons Why You Should Consider Investing In Singapore Real Estate Are you looking to invest in property but not...
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Amidst the highly competitive property market where prices seem to rise every other day, how can you be certain you’re securing a fair deal on your desired property?
Owning a property in Singapore can be expensive, and the last thing you’d want is to pay an excessive price – leaving you with no choice but to make tough sacrifices, such as forking out an outrageous Cash over Valuation (COV) or facing the prospect of having to offload the property for a less-than-desirable price in the future. Sure, you could get your dream property, but is it worth all the trade-offs?
Ready to start searching for the perfect property?
Learn the 5 essential factors you can use to make sure you get the best price for your purchase.
#1 Current Asking Prices of Similar Units
Getting an understanding of the typical asking prices of similar units in a development can give you a good idea of the expected price range. This will help you determine if someone is trying to sell their property at an unusually high price compared to what is typical.
Take note though – it’s not unheard of for certain units in the same building to be priced differently or at a premium compared to the rest. This doesn’t necessarily mean the property is incorrectly priced; instead, it could be attributed to specific features that make those units worth more. Such features might include an exquisite interior, a higher floor level, or stunning views and orientations.
To ensure that the price of the property is justifiable, why not take a look at photos and videos to get a better understanding of its features?
Alternatively, it would be even better to take a physical viewing to truly appreciate its attributes. Additionally, you can use online property research tools to gather data on asking prices and narrow down the results with additional search filters such as number of bedrooms, floor size, and floor level.
#2 Recently Transacted Prices
Despite asking prices which generally reflect a seller’s desires, transacted prices provide a more realistic indication of what the wider market deems a property is worth. Being aware of the recently transacted prices in a development can help you establish a reasonable sum to pay for a property.
To keep up with market trends and developments, especially in a rapidly evolving market such as the one we’re in right now, it’s advisable to examine transactions up to the past 6-12 months – any older than that could potentially be obsolete and not reflect the current market trends.
Check out these helpful online tools for your research:
- The URA’s Private Residential Property Transactions e-service is a must-have tool for anyone looking to delve into the real estate world! With it, you can uncover private property transactions up to the past 5 years, filtering your search by ‘Project’ or ‘Property Type and Postal District’.
- Looking to buy a public resale flat? Our HDB Resale Flat Prices e-service is just the tool for you! Get access to transactions from the past 12 months, searchable by ‘Flat Type’, ‘HDB Town’ and even ‘Block No.’ – so you can find the perfect fit for you!
When considering a property’s value, it’s important to keep in mind that recently transacted prices may have a bearing on your loan financing journey down the road.
Many banks will look into property valuation to decide how much to loan, and often times the unit’s purchase price will need to be in line with the recent transactions in order to be approved.
If the price deviates too much, the bank may not be willing to match it with the valuation, which can lead to a decrease in the amount of loan available.
#3 Recent Highest Transacted Price
If you have been keeping track of transacted prices, it’s definitely worth taking a look at the highest transacted price for the development. After all, if you’re planning to buy the property with the goal of selling it in 3 to 5 years and making a profit, this is definitely something to pay attention to.
When it comes to investing in property, it is important to take into consideration the highest transacted price, which could act as a ceiling for pricing you can expect to get in the future. With your investment goals and projected returns in mind, and keeping this upper limit in mind, you can then decide if the asking price is suitable for you.
Gaining valuable insights into the pricing trends of a development has never been easier – thanks to online property portals! Not only can you have a quick look at the highest transacted price, but you can also filter based on unit size (e.g. number of bedrooms) for a deeper understanding.
#4 Peak Price of the Development
Despite being similar to the earlier point, we consider the difference between the two concepts considerable enough to warrant this to be a separate point on its own.
The peak price is not quite the same as the recently-set highest transacted price, as this is based more on the all-time peak price during the property’s lifespan, rather than the freshness of the transaction.
If you buy a property near the highest price the development has ever achieved, making a profit off of it will be challenging. Setting a new record price will be hard to do since potential buyers are likely to be anchored to the peak price, meaning they won’t be willing to pay more.
#5 Valuation Price
Gain insight into a property’s value and you can be sure you’re paying the right price – and who knows, you might just get lucky and stumble upon a great bargain on an undervalued asset!
D.I.Y with Online Evaluation Tools
Technology has made it incredibly easy to access free online evaluation tools for assessing the value of a property – unless you’re an agent, of course.
With just a few details keyed in, these tools can provide an estimated value. But to make sure you’re getting the best price possible, consider pairing the online tools with websites that showcase past property transactions.
This way, you’ll be able to calculate a more accurate valuation of the property and compare it to the asking price.
Professional Help
Rather than conducting an in-depth valuation and analysis yourself, why not let the professionals take care of it? Here are three fantastic options to consider :
- Valuation Firm : If you want a more in-depth assessment, you can employ the services of a valuation firm. These companies possess the relevant information and formulas required to consider elements like renovation and upkeep – aspects that may be overlooked by online programs.
- Bank Indicative Valuations : For an indicative valuation of your property, reach out to your bank as they often have a list of valuation companies that can help. This valuation will be a key factor in determining your Loan-to-Value (LTV) ratio when you apply for a mortgage loan.
- Property Agents: If you’re looking for an accurate estimation of the property’s value, you can get help from trusted professionals. Not only will they assist you in obtaining the best deal, but they’ll make the entire process a piece of cake! For guidance in this regard, you can always reach out to me. With years of experience in helping others with their property investments, I’m more than delighted to be part of your journey.
Conclusion
As an investor, it is absolutely essential to understand the valuation of a property and the right cost to pay in order to maximize your chances of success on your property investment mission.
Leave emotions out of it and, if the price doesn’t add up, don’t be afraid to turn away from the deal. The real estate market is never-ending and there will always be another property that fits both your budget and expectations.
Gaining clarity on the right buying price for your property doesn’t have to be complicated – I’m here to help! I’m always available to provide further guidance and professional advice.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
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