It can be tough trying to decide on properties when the real estate sector is less than hot in Singapore. In fact, at this point, it’s cooler than ever, but that doesn’t necessarily mean you need to be afraid to move forward. The market is ripe for deals, particularly if you’re a fledgling homeowner. Given that many developers are looking to liquidate properties, you’re actually in a superior position since supply is up and demand is down. Here are a few things to consider as you embark upon a search for a new home in the current economic climate.
- How to Choose the Right Real Estate
There are many things to consider when you’re trying to decide what type of property to buy, where, and how. If you search PropertyGuru Singapore for a house for sale, you’ll see there are a lot of options right now since the market isn’t as hot as it was a few years ago. Be careful if you’re an investor, though, because if you’re seeking to purchase real estate to make a good return, now isn’t the best climate. On the other hand, if you’re a new homeowner or you’re ready to move into a new home to accommodate your lifestyle and family’s needs, you shouldn’t hesitate. It’s not a bad time to buy, especially for individuals who are looking for the best prices. Experts say that the real estate sector is slowly evening out from the sky high prices seen in the last few years to now, since the governmental cooling measures were put into place. At this juncture, the wisest thing you can do in your search for a house is to base your expectations more on what will suit your needs, rather than buying at the absolutely perfect time based on market trends.
- Renting Versus Buying
Deciding whether you want to rent or buy should be based primarily on what type of buyer you are. In other words, if you’re an expat versus a permanent resident, your options are very different. If you’re an expat, you may want to wait to buy, since TheStreet.com reports that the cooling measures put into place by the Singaporean government have resulted in a 15 percent extra tax on any non-nationals purchasing real estate. This is on top of any standard restrictions that were already in place. However, as the market continues to settle, which was the point of the cooling measures in the first place, now is the time to be on the lookout for future purchases. On the other hand, if you’re a permanent resident, then renting may not make sense financially. Since the market is cooled, prices are one your side, so you may want to take advantage before the rates start to rise once again.
- How Singapore Stacks Up Internationally
After the skyrocketing rates in the last few years found in the real estate sector and the subsequent cooling measures, developers and buyers alike are eager to see it finally balance out and stabilize. The good news is that, according to Bloomberg.com, the market in Singapore is closer to evening out than its comparable neighbor Hong Kong in terms of home prices. Therefore, good news is on the horizon, signaling that although caution is certainly warranted, you needn’t be too worried about the market going haywire. Singapore is ahead of its neighbors and well on the way to a stable real estate sector.
- Narrowing Down Options
When you start your search online, you might feel overwhelmed by the sheer number of choices, even after you start with a specific price point. Given that the market is currently flooded with properties since developers are eager to unload stock, you have your pick. If you’re looking for a house, though, there are a few key things to keep in mind. For one, the difference between a house and a condo or HDB flat is that it’s a landed property. If you’re an expat, then this isn’t an option for you except in very specific circumstances and with the right permissions. If you’re a permanent resident, though, there are currently some very reasonably priced houses on the market that are comparable in price to a flat. However, don’t be blinded by the beauty of an interior. Before you get swept up in the fantasy of living in a huge landed house, make sure that the location is also reasonable. Is it near major highways and transit hubs? Are supermarkets and entertainment accessible? These are the types of questions you need to keep in mind, since you’ll find once you start asking, the answers are reflected in the price of the property. Nonetheless, you might be more than willing to settle for an out of the way location in the interest of more space. It’s all dependent on your personal needs.
The government in Singapore has decided that the best way to stabilize the real estate market is to implement cooling measures. Whether you agree or not, it’s the reality, and you’ll need to work with the current state of affairs even if they’re not ideal. There are definitely pros and cons, depending on who you are and what you want to get out of acquiring real estate. For example, if you’re interested in a particular neighborhood, then purchasing now despite what the market is doing isn’t a bad idea if you find a property you like. While watching what the market is doing is certainly prudent, it definitely shouldn’t be the primary factor in your decision-making process when you’re ready to purchase a home.