Strategies for Overcoming ABSD and Acquiring Multiple Properties in 2023 (Revised)
TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, there are legal strategies available to...
Read More
The Steep Price Of Making A Mistake When Buying Property In Singapore
Are you yearning for a condo, but the financial strain is holding you back? Or perhaps, you’re simply uncertain about taking the plunge? In that case, it might be wise to exercise patience.
I know, I know. There are plenty of experts in the real estate industry who would shake their heads at this advice. After all, the prices of private properties only seem to be skyrocketing with each passing year, outpacing even the beloved HDB flats. I’m sure you’ve seen the infamous “HDB vs. Condo price gap” chart countless times by now. And I won’t deny that they have a valid point:
Yes, it’s true that delaying your purchase means shelling out more for a private property. But let me tell you, a little extra spending is a small price to pay compared to the risks of buying a condo before you’re ready.
Let me paint you a picture: eager, young buyers eagerly snatching up the first condo unit they can afford, even if it’s a cramped one-bedder. Some of them don’t even plan on living in it, just using it as a rental while they continue to reside with their parents, partners, or other arrangements.
And if it’s not the investment potential, there’s the allure of saying you own a condo in the prime districts of Bugis, Anson Road, or Holland V. Surprisingly, this dream can still be within reach in 2025, if you’re willing to settle for a one-bedder.
But what truly gives me pause is this thought that arose when I came across the most outrageous property flipping story the other day:
There’s no going back if you make the mistake of buying a condo before you’re truly ready.
Gone are the days where you could purchase a property and sell it off the next day if you have a change of heart, or stay for a brief period and realize the quiet life next to the woods isn’t for you. Sadly, that luxury no longer exists.
Firstly, there’s the dreaded Sellers Stamp Duty (SSD). Sell within the first three years of your purchase, and you’ll face a hefty tax of 12%, 8%, and 4% of the sale proceeds in the first, second, and third year respectively.
Secondly, don’t forget to factor in the possibility that the sale proceeds might not even cover the cost of renovations. Even if you splurged on a lavish $30,000 to $50,000 makeover for your shoebox unit, don’t count on recouping that amount when you sell. It doesn’t matter how new or modern the renovations are; I’ve seen homebuyers tear down newly renovated spaces because they prefer to create their own personalized sanctuary.
Lastly, unless you’re 55 years old and downsizing to a smaller flat, there’s a long wait of 15 months before you can purchase a resale flat. And if you’re not keen on a pricier, older, and more rundown flat, good luck holding out for the 30-month wait to apply for a BTO flat.
So just imagine the consequences if you succumbed to temptation and bought a one-bedder, only to meet the love of your life a short while later. You’re eager to move in together, start a family, and build a future, but a one-bedder just won’t cut it. And you can’t apply for a flat while still owning a private property. This forces you to sell the condo, potentially during a market downturn.
There’s a real danger that the financial blow will be so severe, you’ll regret not waiting a few more years.
Therefore, with regulations like the SSD and MOP in place, it becomes even more crucial to make the right decision.
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 …
Discover What Else You Can Focus On Beyond PSF – Here’s How!
TLDR When considering real estate investments, factors like property size, location, and PSF play crucial roles in determining affordability. Smaller...
Read More
Superstitions in the Real Estate Market : How Does it Impact Resale Value?
TLDR When navigating the Singapore property market, it's crucial to consider various superstitious beliefs that can impact your decisions. From...
Read More
Top 5 Thai Restaurants in Singapore
Singapore, a melting pot of cultures and cuisines, is a food lover's paradise. Among the myriad of dining options available,...
Read More
5 Tips : How To Buy A Property In Singapore As A Foreigner
Singapore's property market is a popular choice for both locals and foreigners looking to invest in real estate. However,...
Read More
HDB Market Outlook 2023
TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...
Read More
6 Essential Factors HDB Upgraders Should Be Aware Of Before Purchasing a Condo in 2023
TLDR When upgrading your property, consider factors like rental rates, Buyer's Stamp Duty adjustments, higher interest rates for bank loans,...
Read More
5 Exciting Trends Shaping Singapore’s Property Market for Future Buyers After 2024
TLDR When it comes to the evolving landscape of property development in Singapore, developers are facing new challenges and opportunities....
Read More
Top 5 Nature Walks in Singapore for Hikers
Singapore, a bustling city-state known for its impressive skyline and modern architecture, is also home to a plethora of natural...
Read More
6 Reasons to Think Twice Before Hiring a Friend or Family Member as Your Agent
TLDR In Singapore, hiring a friend or family member as your property agent can be risky. Disclosing sensitive financial details...
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
Top 5 : Best Architectural Marvels in Singapore
Singapore, a vibrant city-state known for its diverse culture and stunning skyline, is also home to some of the most...
Read More
Top 5 Reasons Why Singapore’s Property Market Is A Haven For High Net Worth Investors
Singapore's property market has long been a magnet for high net worth investors, both local and international. The city-state's strategic...
Read More
Top 5 Cafes in Singapore for Brunch
Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....
Read More
Could You Still End Up Losing Money When Buying Property in Singapore During a Market Slump?
TLDR When it comes to property investments, timing is crucial. Buying at the right moment is only half the battle;...
Read More
Calculating Your Property’s Annual Value in Singapore 2024: A Simple Guide!
TLDR Understanding your property's annual value is crucial for determining property taxes in Singapore. The annual value is based on...
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 Tips for Renting Property in Singapore
Renting property in Singapore can be a challenging task, especially for those who are new to the country. With Singapore's...
Read More
Exciting News: Affordable Housing in Singapore by 2024?
TLDR The real estate market in Singapore is experiencing shifts in housing supply and demand, influenced by factors like mortgage...
Read More
Should You Splash Your Cash on a Condo Despite the Sky-High PSF?
TLDR The blog post discusses various aspects of investing in condos in Singapore, covering topics such as leasehold versus freehold...
Read More
