A Guide to Purchasing a New Launch Condo in Singapore in 2023
TLDR When buying a new launch condo in Singapore, start by planning your finances to determine loan and property limits....
Read More
TLDR
When deciding between a recently MOP-ed HDB property and an older resale HDB property in Singapore, various factors come into play. Consider your individual circumstances, future plans, renovation preferences, desired amenities, investment goals, and location preferences. Singles and married couples have different rules to follow, influencing their property choices. Assess how long you plan to live in the property, your space requirements, and whether you are willing to undertake renovations. The region of Singapore where you choose to buy property also impacts your decision. Ultimately, your choice between a recently MOP-ed or older resale HDB property depends on your personal preferences and long-term objectives.
For Singaporeans, the challenge of securing an affordable yet desirable place to purchase and call home is an ever-present one. With the intense competition for real estate, the government has put in place guidelines to make property ownership more accessible.
In this article, we’ll examine the options between buying a recently MOP-ed HDB or an older resale HDB, and explore how to reconcile both affordability and a healthy lease.
If you’re looking to buy in an HDB property, it’s important to consider the Minimum Occupation Period (MOP) – a 5 year term where the owners must reside in the property.
However, older resale properties usually have less than 65 years remaining on the initial 99 year lease.
It’s essential to evaluate your individual situation and goals before deciding which property is the right one for you, as the costs and potential returns vary significantly between the two.
It Depends On Your Circumstances
The question of which HDB property to purchase – a recently MOP-ed one or an older resale – can be highly dependent on individual life circumstances, such as marriage status and living arrangements.
Factor in the cost of potential renovations, investment objectives, unit size, and location in Singapore, and you’ll have a clearer picture when making your decision.
Let’s delve into the pros and cons of the two and see which HDB property fits your bill.
Single vs. Married
Singles in Singapore are required to wait until their 35th birthday before they can purchase property – a rule that, while it does guarantee anyone buying property as a single person has a good amount of savings for the down payment, does unfortunately mean that singles can’t capitalize on the potential wealth of property ownership for a significant period of time after their professional careers have already begun.
Married couples have the advantage of looking at newly MOP-ed HDB flats or resale HDB flats before singles can, when they reach the age of 35.
This gives young married couples the chance to buy their first home faster and possibly even upgrade to a larger HDB unit or a private property before singles can purchase their first HDB property.
How Long Will You Live There?
Take the time to consider how long you intend to stay in this home, as well as your future goals. If you plan to stay just long enough to meet the MOP and then upgrade to a pricier property, it’s recommended to go for a recently MOP-ed HDB property.
The length of the remaining lease on a property when you sell it is a major factor influencing its price, since a longer lease is likely to result in a higher price.
Consequently, although an older resale property may come with a lower purchase price, buying a newer property with a longer lease will ensure it retains its value better over time.
Longer Term Living Situation
For some Singaporeans, the prospect of upgrading to a newer property upon reaching its MOP may not be a priority; be it to remain near their workplace, look after parents, or just enjoy the convenience of their current location.
Buying an older HDB resale property may therefore be the more practical choice, allowing them to remain near the people and places that matter most.
If you’re a single who’s planning to stay in one place for the long haul, buying a HDB resale property may be the way to go – it’ll come with a lower price tag and its value will likely decrease over time.
How Many Rooms Do You Need?
When it comes to choosing between a recently MOP-ed HDB property or an older resale HDB property, size is an important factor to take into account.
If you’re planning to live alone, you won’t need too much space; however, if you’re looking to have a roommate or have your parents move in at some point in the future, then a larger flat is the way to go.
So, it’s wise to consider your future needs before making the purchase.
If you plan to live by yourself and don’t need a lot of space, a 2 or 3-room flat would be the best fit.
On the other hand, if you want your home to be attractive to potential buyers (and cost is not an issue), then you might consider a 4-5 room flat.
Statistics from the HDB Resale website show that the 4-room flat is the most popular among buyers compared to the 1-room flat, 2-room flat, 3-room flat, 5-room flat, and executive condos.
Which Region of Singapore Do You Want To Live In?
When considering whether to buy real estate in the Core Central Region (CCR), the Rest of Central Region (RCR), or Outside Central Region (OCR), be sure to take into account that some parts of Singapore have higher rates of growth in value, while others are well-stocked with HDB properties.
Put simply, CCR properties are among the most sought-after and pricey areas in the country – and it’s no wonder why they tend to boast the highest value.
If you are looking to buy property close to the Central Business District (CBD) of Singapore, then the Rest of Central Region may be the perfect choice for you. There is plenty of development away from the Core Central Region, making it a great option for those seeking newly MOP-ed HDB properties and older resale properties.
If you’re on the hunt for an HDB property that recently MOP-ed, you’ll have the best chance of success in the Outside Central Region – the region with the highest number of HDB flats in Singapore. So if your goal is to find a recently MOP-ed HDB property, this region is where you want to be!
Your financial means will be the key factor in deciding which part of Singapore you will choose to purchase property in.
As you step away from the centre of Singapore, you will find more and more HDB properties available for you to pick from.
Do Consider Property Renovations
When choosing between a recently MOP-ed HDB property and an older HDB resale property, the potential costs of renovations and other improvements can be a major factor to consider.
Although the HDB imposes strict rules on what type of renovations property owners are allowed to carry out, the possibility of renovations should not be taken lightly.
Give thought to your personality and willingness to make property improvements. There are countless property buyers eager to take on the challenge of revamping the flat, whether it be replacing appliances, sprucing up the furniture, or refurbishing fixtures.
Do-It-Yourself Property Renovation
If you are open to the idea of renovating an older HDB resale property that you can call home, then this could be an ideal choice for you.
If you’re considering buying an older property, be aware that you may have to fund renovations at some point during your ownership – set aside enough money to cover any potential repairs.
Moreover, you should be prepared to carry out the work yourself, or hire a contractor to do it, as these tasks will ultimately fall to you if you’re the owner for long enough.
Renovation?
If you are hesitant to take on the challenge of property renovation or prefer to focus your attention on other activities, then opting for a recently MOP-ed HDB property could be your best bet.
These properties have the advantage of being newer and as such, have fixtures that are built to last throughout your occupancy.
Fewer issues within the apartment will result in a more peaceful experience for the property owner.
Amenities
A recently MOP-ed HDB property is sure to be the most up-to-date, boasting the most contemporary options and features on the market – perfect for those property owners who are looking for the latest and greatest amenities for their residence!
No matter what you plan to use your property for, the amenities are likely to play a role in your decision-making process.
But, if you’re viewing your home as just a place to rest between work and personal commitments, then older amenities and aesthetics may become more of a priority in your property purchasing journey.
Is This Property One Of Your Primary Investments?
When it comes to property buying, it’s important to consider your approach and desired outcome. Remember, no one ever buys a house hoping that its value will immediately diminish!
Despite the fact that an older HDB resale property typically depreciates in value over time, some property owners tend to approach the purchase of such a property in a similar manner as they would rent an apartment.
To them, paying the mortgage is equivalent to rent; the reality is they might not get back more than what they put in, but they prefer the stability and control that renting may not offer, as a landlord can easily switch their mind about leasing their property.
If you’re looking to invest in real estate and build a strong portfolio, then you should strongly consider purchasing a newly MOP-ed HDB property. T
his way, you’ll benefit from its greater long-term value, in contrast to an older resale HDB property.
On the other hand, if you’re seeking more stability and control over your housing than those who rent from a landlord, then an older resale HDB property may be the perfect opportunity for you!
Whether A Recently MOP HDB Or Older Resale HDB Property Is Right For You
It all comes down to personal preference and future objectives: which would be the better buy, a recently MOP-ed HDB or an older resale HDB property?
Hopefully, this article has helped to shed some light on the question.
As you wrap up your house hunting journey, don’t forget to take into account:
- How long do you plan on living in this property?
- Are you looking to upgrade to a more expensive place in the future?
- How much space do you require in a property?
- What area of Singapore appeals to you the most?
- Are you up for renovating the place or would you prefer to keep it as it is?
- How important are quality amenities to you?
- Is this property going to be an investment for you?
Work With Experts
When it comes to buying property, it’s arguably one of the most important financial decisions you’ll ever make, so you want to be sure to make an informed decision.
That’s why I’m here to help you through the journey, to make sure you get the home of your dreams!
Reach out to me today and let’s get started!
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.
You May Also Like …
5 Qualities to Look for in an Agent to Ensure a Smooth Transaction
5 Qualities to Look for in an Agent to Ensure a Smooth Transaction Here are 5 qualities to look for...
Read More
Top 5 Mistakes to Avoid When Investing in Singapore Real Estate
Investing in Singapore's real estate market can be a lucrative venture, given the city-state's status as a global financial hub...
Read More
Top 5 Reasons : Why Ultra-Rich Families Racing To Park Wealth In Singapore
Singapore, a small island nation in Southeast Asia, has become a magnet for the world's ultra-rich families seeking to park...
Read More
Top 5 Factors : Buying Resale vs New Launch Property in Singapore: Which is Better?
The decision to invest in a property in Singapore can be both exciting and daunting, especially when faced with the...
Read More
Top 5 Live Music Venues in Singapore
Singapore, a vibrant and multicultural city-state, is well-known for its diverse food scene, stunning architecture, and bustling shopping districts. However,...
Read More
Beyond Buying: Innovative Strategies for Property Investment Success
TLDR The world of property investment and real estate trends offers vast opportunities. Stay informed with effective property investment strategies...
Read More
Dual-Key Condo: Analysing The Pros And Cons
TLDR for "Dual-Key Condo: Analysing The Pros And Cons" When considering dual-key condo units, it's important to weigh the advantages...
Read More
What is Your Next Step in the Property Market?
When you flip open the papers or turn on the news nowadays, the common buzzwords are "INFLATION", " INTEREST RATE...
Read More
Are You Ready to Take on the Singapore Property Market in 2023? 12 Reasons to Be Hopeful (Or Wary)!
2022 sure was a rollercoaster ride for the property market, and the world! From war in Europe to skyrocketing interest...
Read More
What Is Cash Over Valuation in HDB (COV)
TLDR Cash Over Valuation (COV) in HDB resale flats occurs when the purchase price exceeds HDB's valuation. COV cannot be...
Read More
Here Are 6 Interesting Facts About The Minimum Occupation Period (MOP) That Not Many People Know About In Singapore
TLDR When it comes to understanding the Minimum Occupation Period (MOP) set by the Housing Development Board (HDB) in Singapore,...
Read More
Top 5 Best Instagrammable Spots in Singapore
Singapore, a vibrant and modern city-state, is known for its stunning architecture, lush green spaces, and colorful streets. With its...
Read More
Beware! Spot These Warning Signs Before Making a Home Purchase!
TLDR When purchasing a property in Singapore, it is crucial to thoroughly assess various aspects of the home to avoid...
Read More
5 Dangerous Ideas Singapore Property Investors Have
Singapore's property market has always been a hot topic among investors, both local and international. With its strong economy, stable...
Read More
5 Unexpected Factors That Make Some New Launch Condos Sell Like Hotcakes
TLDR The Singapore property market for new condo launches in 2023 saw varying degrees of success. Factors like limited competition,...
Read More
5 Reasons Why It’s A Great Time To Buy Property In Singapore In 2024
Singapore's property market is known for its stability, high demand and strong returns. With a growing population, low unemployment rates,...
Read More
Navigating the Singapore Property Market as a Foreign Investor: What You Need to Know
Singapore, a thriving hub of business and commerce in Southeast Asia, boasts a highly developed economy and a robust real...
Read More
Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood
Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood When it comes to purchasing a property in Singapore, the...
Read More
Exploring the Resale Condo Market? Here’s What to Watch Out For!
TLDR The impact of COVID-19 on Singapore's real estate market has been significant, leading to a surge in demand for...
Read More
