Condo Buying Guide: How to Choose the Right Condo?
When it comes to real estate investments, purchasing a condo can be a significant decision. Whether you’re a first-time buyer or a seasoned investor, understanding how to choose the right condo is crucial. In this video blog post, we will explore three essential questions in our condo buying guide, which you need to ask yourself before buying a condo. We’ll also discuss various scenarios and provide expert recommendations based on factors like property type, ownership duration, quantum, and more. Let’s dive in!
Question 1: Primary Residence or Investment?
The first question in our ultimate condo buying guide is whether you are buying the property as a primary residence or as an investment. Clarifying your objective will help you make better decisions throughout the process. If you’re buying for investment purposes with a three to four-year timeline and seeking high capital appreciation, a 99-year new launch property could be a suitable choice. New launches often offer higher capital appreciation due to their newness and market demand.
Question 2: Freehold or 99 Years?
The choice between freehold and 99-year leasehold properties can be daunting. For buyers looking for a long-term residence, both options are viable. However, if you’re considering an investment with a focus on entry price and quantum, it’s recommended to explore the resale condo market. Resale condos offer more options and flexibility in terms of pricing. Additionally, both freehold and 99-year leasehold properties have their own advantages and should be considered based on individual preferences and long-term plans.
Question 3: Rank the Criteria That Matter Most to You
To prioritize your condo buying criteria, it’s important to rank the factors that matter most to you in terms of their importance or value. Here are three common criteria to consider:
A. Low Entry Price: If affordability is your primary concern, prioritizing a low entry price can help you find properties that fit within your budget.
B. Good Rental Yield: If you’re looking for an investment property with a steady income stream, focusing on good rental yield can be beneficial. This is especially important if you plan to rent out the property.
C. High Capital Appreciation: If your main objective is long-term wealth accumulation, prioritizing high capital appreciation potential can guide you towards properties that have historically shown strong appreciation rates.
[Scenarios and Expert Recommendations:]
Scenario 1: Short Term Investment (3-4 years) with High Capital Appreciation
For short-term investments, new 99-year leasehold launches are recommended due to their potential for higher capital appreciation. However, caution should be exercised to ensure adequate financial safety net in case of unexpected market downturns and you need to hold the property for a longer period
Scenario 2: Buy to Stay Long Term + Low Entry Price
If you are buying a home to stay for a longer period and your primary concern is low entry price, consider exploring resale condos with a focus on quantum.
Both freehold and 99-year leasehold options are suitable, depending on your preferences and long-term plans.
Scenario 3: Dual Objectives (Own Stay and Investment), with High Capital Appreciation
If you want to strike a balance between own stay and investment potential, consider 99-year leasehold properties with competitive pricing and good capital appreciation. Younger condos (up to 15 years) often offer better potential in this regard.
Choosing the right condo involves careful consideration of various factors. By asking yourself these three essential questions and understanding your objectives, you can make an informed decision. Remember to balance quantum and PSF, consider the leasehold duration, and evaluate the potential for capital appreciation. If you require further assistance in understanding your options, it is advisable to seek advice from real estate professionals who can guide you based on your specific situation.
Contact us today @ 98285808 for a personalized discussion and market insights to help you find the perfect condo for your needs. Happy condo hunting!
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