Avoid Low Floor & Units with No Views?
📌How to Select the Best Condo Unit After You have Decided on a Specific Project?
- Should you get a high-floor or low-floor unit?
- Which is better for investment – 1 or 2 bedroom?
- Are views important?
📌How to select the best condo unit – Low Floors Ok?
Inside showflats, I frequently encounter buyers who do not want units on the low floors. They also like units with nice views. Typically, when you are on a higher floor, you will likely have a nicer view. I will always ask my buyers this classic question: are you buying this property to stay or are you buying for investment?
If you and spouse are buying the unit to stay and that high floor views enhance your quality of life, I would say “Go-for-it” if affordability is a non issue
If you are an investor, it will always make sense to enter at a lower price point when buying. When the consideration is purely economic, I will be very open to low floor units with no views.
📌How to select the best condo unit – Rental Yield
From an investment point of view, you may not get better rent just because the unit is on a higher floor. Tenants will not be willing to pay more as most of them are price sensitive. When rent is more or less constant regardless of floor levels, you will likely end up with a lower rental yield because higher floor units will be more expensive
📌 Why buyers avoid low floor units: HDB Carry Over-Effect
About 80% of Singaporeans live in HDB and when they upgrade to a condo, they will likely have this low-floor-aversity carried over from “HDB Living”
HDB Low Floor Challenge #1 : Noise generating activities from HDB void deck area e.g. kids enjoying their game of soccer, funeral wake etc
HDB Low Floor Challenge #2: Hygiene factor. Low floor HDB units will generally face more “insects or foul smell” problems. This is a very valid concern.
However, in a condo, it is unlikely to run into such problems because there are no void decks and most modern condo projects will have installed pneumatic waste system with centralized bin centre. When HDB upgraders cross over to a condo, it is inevitable that some of them will bring this “instinctive mindset” and shun low floor units
📌 How to select the best condo unit: Views or No Views?
When you are buying for investment and have a tight budget, it is fine to go for units with no views. Generally, views are secondary to tenants. If you are buying to rent out your unit, go for units with no views because these will usually be the ‘starbuy’ units (i.e. promotional units with deep discounts) in any new projects. You will have the price advantage over your neighbours when selling your property.
As a rule of thumb, 3 out of 10 buyers prefer non swimming pool views because of the noise it brings, especially during weekends. These buyers may prefer units without views but are quiet and serene.
📌 How to select the best condo unit: 1 bed vs 2 bedroom
The 1 bedroom quantum is attractive to investors because of its relatively lower quantum. However, If budget allows, I will strongly recommend investing in a 2 bedroom unit because they appeal to both investors, who are looking to rent out their units and also small families buying for own use
📌 How to select the best condo unit: Geographical factor
For example, Farrer Road, which is very popular with European expatriates. This group of tenants favour bigger size condos (e.g. 3-4 bedrooms) in general. If you were to invest in a small unit in this area, hoping to look for a good tenant, you may be disappointed as these potential tenants tend to gravitate towards bigger units.
On the other hand, tenants in Rangoon Road & Farrer Park MRT area, who are mostly singles or couples with no kids, will prefer 1-2 bedrooms
When buying near international schools like Australian International School or Stamford American School, you can rest assured that bigger units (e.g. 4 or 5 bedrooms) are very popular and are easily rented out. This is the same for most areas near most international schools.
📌 How to select the best condo unit: 2 Bed 1 Bath or 2 Bed 2 Bath?
When we look at the 2 bedders, we must also differentiate between the 2 beds 1 bath Vs. 2 beds 2 baths. Which one should I buy?
📌 TEST QUESTION:
Are you buying for own use or for investment?
- When Buying to Stay: Go for 2 Bed – 2 Bath
How to select the best condo unit? If you are buying for your own use and have more than 2 people residing there, then go for 2 beds 2 baths as you do not want to be vying for the use of the bathroom in the morning when everyone is rushing to work or preparing for school.
- When Buying to Rent-Out: 2 Bed – 1 Bath is OK
When buying for investment, the 2 beds 1 bath would make more sense because you would save about $100k on the toilet. That would mean a lower entry price. However, if there are no budget constraints, then 2 beds 2 baths would be good as they may be easier to sell in future.
📌 Singapore Government is Aiming for a 6.5 to 6.9 million population by 2030.
With the population now at 5.5 million, what do you think would happen to the property prices if there is an increase to 6.5 million? Would the prices increase or decrease?
[Top 10 Condo Questions]
- Does it have to be Freehold?
- Old Aging Condo has No Value?
- New Condo Sizes are Shrinking! Secrets Revealed?
- Why New Condo when Resale PSF is cheaper?
- Should I avoid Low Floor & No Views Unit?
- 1 BR vs 2BR –Which is Better for Investment?
- Why “Near MRT” will Get Less Important?
- Buying for Primary School Enrolment?
- Does Developer reputation matter?
- Does District Matter? (CCR vs OCR)
Check out all top 10 condo questions here
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