What To Consider As A First Time Home Buyer?

Created by condolaunchsg May 23, 2020

What To Consider As A First Time Home Buyer?

Location Matters
Researching on the location of your property is the very first step anybody should take when it comes to buying a home.
Although you might already be aware of this step, it is often overlooked by many buyers – especially first time home buyers.
As a rule of thumb, before you jump into a property transaction, first consider:

  • The desired area of your home
  • The type of property you wish to purchase
  • Neighbouring schools for your children

You are highly encouraged to recce the place of choice before making any further decisions.
Legwork does pay off when we’re talking about the most significant transaction for most Singaporeans in their lifetime.
Dig Deeper Into The Market History
If you’re already approaching property agents to look for your first property, you’ll realise that most of them are very gung-ho about the subject on property.
Some of them might even misrepresent the truth about the current situation of the property market just to entice you to buy.
It is not uncommon for them to tell you that there’s no bad timing in buying property – after all, the Singapore property market is one of the strongest in the world.
Unfortunately, it couldn’t be further from the truth. Timing plays a huge role in whether you get to enjoy capital appreciation when you decide to sell your home.
Remember the Penrose condo resale price index mentioned previously? If you had bought your resale flat in 2013, you’d most likely be making a loss if you sell it now.
In May 2019, a 2,336 sq ft three-bedroom unit in Sentosa cove was sold for SS$3.1 million, which is SS$3.2 million below its original purchase price of SS$6.27 million in 2010.
Although the example shown is a private property, it does show that even private properties in prime locations such as Sentosa Cove are greatly affected.
So how would you know when the property market is not doing well?
For home buyers, you can look out for the following:

  • When there are news reports of decreasing property prices as well as the number of transactions
  • When interest rates rise
  • When the cost of housing increases faster than income levels

Readmore: Cost Of The Different Housing Types In Singapore