Your search results

The High Price of Picking the Wrong Property in Singapore in 2025

Posted by Jayson Ang on January 9, 2025

| 0

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 …

Mandarin Top 5

Top 5 : Singapore’s Most Desirable Properties: A Look at the City’s Most Coveted Real Estate

Jayson Ang – October 5, 2024 –

Singapore, a bustling city-state known for its impressive skyline and thriving economy, is home to some of the most desirable...

All Opinion

Unseen Dangers of Putting Your Money in Upscale Freehold Properties in Singapore

Jayson Ang – February 17, 2024 –

TLDR Luxury freehold properties in Singapore may not always be the lucrative investment opportunities they appear to be. High-end properties...

Mandarin Top 5

Why Property Investing is the Key to Early Retirement in Singapore

Jayson Ang – April 28, 2024 –

Investing in property is a popular way to build wealth and achieve financial freedom in Singapore. With the right strategies...

Mandarin Top 5

Top 5 Bakeries in Singapore for Fresh Bread and Pastries

Jayson Ang – May 6, 2024 –

Singapore, a melting pot of cultures and flavors, is well-known for its diverse culinary scene. Among the many gastronomic delights...

Mandarin Top 5

Top 5 : How Does One Choose Good Property In Singapore?

Jayson Ang – January 28, 2025 –

Choosing a property in Singapore can be an exciting yet challenging endeavor. With the city-state's dynamic real estate market, it...

All Blog Posts Buying Tips

When Is The Best Time To Buy A New Launch?

Jayson Ang – January 13, 2023 –

TLDR When it comes to new property launches, timing is crucial. Early buyers often secure the best prices due to...

All Buying Tips Opinion

Unlock the Secrets of Property Investment and Transform Your Financial Future!

Jayson Ang – September 30, 2024 –

TLDR The Singapore property market has experienced fluctuations, impacting private home prices. Understanding your financial capacity is crucial when considering...

Mandarin Top 5

Top 5 Factors : Why Investing In A Property With A Good View Can Be A Profitable Move In Singapore

Jayson Ang – August 1, 2024 –

Investing in a property with a good view in Singapore can be a profitable move for several reasons. Here are...

Buying Tips Mandarin Top 5

Sentosa’s Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore’s Premier Island

Jayson Ang – June 20, 2023 –

Sentosa's Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore's Premier Island Here are the top 5 reasons...

Mandarin Top 5

5 Key Factors that Affect Singapore’s Property Prices

Jayson Ang – August 29, 2024 –

Singapore, a thriving city-state known for its impressive skyline and robust economy, has one of the most dynamic and competitive...

All Buying Tips Selling Tips

Could It Be Wise to Sell Your Property After Just 3 to 4 Years?

Jayson Ang – February 5, 2024 –

TLDR In this blog post, the writer delves into the Singapore property market, particularly focusing on the effectiveness of quick...

All Buying Tips Opinion

Are Early Bird Discounts At New Launches Genuine Or A Marketing Gimmick?

Jayson Ang – November 20, 2023 –

TLDR When considering investing in new property projects, understanding developers' pricing strategies is crucial. Early bird discounts are not just...