So it is finally time for you to start an exciting journey in search of your dream home. Or even begin buying your dream home. This can be an exciting adventure, if not also a potentially nerve wrecking journey.
Exciting, because it is time to decide on where you want to call your ‘hood. So, what is it going to be – is it the Instagram-friendly Tiong Bahru, sea breeze-swept Marine Parade, quaint Joo Chiat, or maybe heartland towns like Ang Mo Kio and Yishun?
Now let’s say you have done the math and decided on your housing budget. What’s next? Here we have a handy checklist to help you work through your priorities and go about shortlisting and identifying your dream home.
And trust us when we say each of these factors are as important as the other. You will definitely want your dream home to hit as much of these factors as possible, if possible.
1. Location and proximity to MRT stations
By location and proximity, we mean its location to the nearest MRT stations and bus stations. Do not underestimate the importance of having an MRT station near your home – preferably within walkable distance from your humble abode.
Locations further from the MRT station may require a feeder bus ride, which could add 15 to 20 minutes to your daily commute. It may not seem excessive, but that extra time in the mornings can go some way for those who need to take their children to school or those who are simply sleep deprived.
Furthermore, your property will certainly be more appealing to resale buyers, fetching 5% to 10% more if you are located within a 5 to 8 minutes’ walk to an MRT station compared to those which are not. Because really, no property is that attractive to anyone if it doesn’t have a central enough location.
2. Surrounding key amenities
This is the next thing you will want to take note of. Say you are already living in your dream home, in the perfect location, you’d imagine that everything you need and want is around you within easy reach.
That said, it wouldn’t make sense to buy your dream home in an area where nearby amenities are lacking or not up to your families’ needs. Nearby amenities such as a mall, supermarkets and eateries not only value-add to convenience but also enhances the quality of life.
For families with children, you will want to consider nearby educational institutions as well and plan for the long run. No one would want to move around after a few years just because it’s time for the kids to move to higher levels of education. So save yourself the time and cost and research ahead.
3. Apartment size and family planning
Naturally, you would have thought of this. On a personal level, are you planning to have kids in the near-term or do you foresee your parents moving in with you in the future?
That 3-room flat at Queenstown may look appealing and affordable but will it be spacious enough to accommodate any changes to the family unit? Family planning is an important step which all young couples should not skip, especially for those purchasing HDB flats; since any upgrading to a bigger unit can only be done after the 5-year minimum occupation period.
So remember to plan ahead and ask yourself what you foresee yourself doing at your dream house in the next few years. If you have just started a family and foresee a growing number of family members, it is best to plan ahead.
4. Orientation and facing of the unit
The facing of the unit is another important aspect which should not be overlooked by homebuyers – not just for securing a good view of the city skyline or for Feng Shui purposes, but for a practical reason, namely the unit’s orientation to the sun.
As a rule of thumb, units with North-South facing are the best, while units with East-West facing are less ideal as they would bear the full brunt of the late afternoon sun. Owners of such units usually need to spend more on their electric bills to cool their unit and may face a discount in asking prices when they try to sell their homes.
So make sure you find out the orientation and facing of your dream unit. Especially if you are looking at a new launch project. These can help you achieve a dream lifestyle at your dream home when you do move in later.
5. Lease tenure and remaining lease balance
There are several types of lease tenures for Singapore property, among them are freehold, 999-year, or 99-year leasehold tenure. For most HDB flats, they are issued on 99-year leases, with a reversionary title to the state.
In other words, the flats will return to the state upon lease expiry, with owners receiving no compensation at the end of the lease. If you are interested in a leasehold property, particularly an HDB flat, it is important to check its balance lease. If the remaining lease is less than 70 or even 60 years, it may be harder to sell the unit later on as the prospective buyer in the future could face challenges in securing financing to buy your flat.
For properties with freehold titles, usually private residential properties, they would not have to be returned to the state since their titles are effective into perpetuity. Freehold properties are usually popular with home buyers since they tend to better retain their value and can be passed down to generations to come.
6. Future transformation plans for the area
Any transformative efforts and initiatives to rejuvenate or gentrify the area, such as a new MRT station or a new commercial centre or mall should be taken not. Typically, a new transport infrastructure or commercial development in the area could help to lift your property’s growth potential in the years to come.
This isn’t to say that you should specifically look out for homes in areas which are slated for redevelopment, since gentrification is a long process and owners must be prepared for dis-amenity such as construction noise and other such inconveniences related with building and construction activities.
But if you are hoping to see your home value appreciate or are looking forward to new things to explore in your neighbourhood in future, definitely pay attention to such plans.
A house is made with walls and beams; a home is built with love and dreams – Ralph Waldo Emerson
Now that we’ve walked you through the important factors to consider when buying a dream home, remember to differentiate between your preferences and priorities. And perhaps the most fundamental question buyers will need to ask themselves is – what is the end goal for the property? Will it be a forever home or will you be upgrading to another property in the future?
There is no right or wrong answer, but a property purchase is a big financial commitment which needs careful consideration. For many, a property is a means to preserve their wealth and grow their capital. For others, all they are looking for is a humble and lovely abode to call home. Whichever goal you are looking at, be sure to keep these tips in mind and lastly, happy home hunting!
And alas, if you find yourself stuck in a rut even after weighing all possible options, you may need a professional’s opinion. In this case, schedule a visit with us or book a free consultation with our trusted and renowned representatives.
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