List Of Top Singaporean Considerations For Buying A Condo As The First Home

It is quite surprising to know that 90.7% of Singaporeans own a house as of 2018! Undoubtedly this is the highest rate across the world. It is one of the most expensive countries for buying a property, but still, the public housing apartments that are known as HDBs has already hit S$1 million. 

Singaporeans aspire to become one of the homeowners thinking that ownership is a brilliant contribution to the retirement-saving system. Having said that, with the rage of the Tapestry Condo, Singaporeans are in a constant dilemma between buying a condo over the HDB flats. Even though they have the highest level of debt in Asia, Singaporeans overstretch themselves for buying one's own house property. 

A few considerations for buying a property for yourself are your lifestyle, eligibility, and the potential amount you can get after selling the property someday. If you narrow considerations, you may find that investing in condos is a costly affair. But here is the blog, that will make you reconsider your thoughts. 

You get a freehold property ownership:

Note: If your only motive behind purchasing a house is to get a good return on investment, you should not go and search for the freehold property. Freehold properties are less and a bit costly than the one on a 99-year lease. If you have strong reasons and want to go private, then go for the freehold properties. Strong reasons here means you have a desire to invest for your future generations, or, you have a good plan to stay in the condo for a considerable period of time.

You get to use the facilities:

Amenities are the major attraction of a condo, and an extensive range of facilities compel people to purchase a condo over HDB flats. But, if you are not going to use the gym, barbeque pits, and swimming pools, you should not think of investing in a condo. Your purchasing decision should be influenced by the idea of whether you are actually drawn towards the facilities and how willingly will you use them. If you do not intend to use them now, say, for example, you already have a gym membership and not going to use the Tapestry condo gym facility, you should rethink your decision. 

Please don’t assume that these facilities are free; you are paying them in the MCST fees. The swimming pool, table tennis court, gym facility will only save a bit of money, but it offers ultimate convenience. So ready to take a hot shower after heavy working hours? 

You get rid of the HDB’s restrictions:

HDB ownership approval is a tough nut to crack. No doubt, HDB flats are more cost-effective than the condo, but they are fraught with restrictions. Some of the restrictions are, an unmarried person under 35 should not expect the HDB flat ownership. Also, couples having earnings above $12000 for four rooms or bigger and $6000 to $12000 for three rooms and smaller. Moreover, if you crack the tough luck and own an HDB flat, you can not rent out rooms to people on Airbnb. 

Some other considerations are:

Legal and Financial eligibility:

Acquiring a property in Singapore requires buyers to meet certain eligibility criteria. For buying a HDB flat, you should have Singaporean nationality and family nucleus eligibility for purchase. But for buying condos, you do not face such restrictions. Foreigners can own a condo by paying additional stamp duty and a top-up of 15%.

There are also many other rules manifested with house loans for residents and foreigners. So, before finalizing the HDB flats or condos for yourself, work out wisely with the loan amount, your salary and repay the amount. 

We know you dream about your Condo and hope the above points have made it pretty clear that condos are the best investment and shall give good returns in the long run. However, if you still have confusion, you can speak to any financial advisor or visit the Tapestry showflat for further guidance.