Worst Mistake When Buying Condo

Worst Mistake When Buying Condo

What is the worst mistake when buying a condo? Are you committing this costly mistake?

📌 Are you buying for your own-use or for investment?

Many commit the mistake of using their own personal preferences to decide when buying for investment. The truth is, your preferences matter less when you buy for investment. More important factors are:

  • Low entry point
  • Rentability
  • What you tenants may like

For investment, it is OK to get the cheapest units. Usually found on low floors with little or no views. Tenants are unlikely to be willing to pay significantly more rent for a higher floor unit with better views which would have cost much more to purchase.

worst mistake when buying cond

You should also avoid first-floor patio units, a penthouse with a high ceiling, or an open terrace. I call them lifestyle units. Resale demand is usually smaller for these units & may take a longer time to sell than a regular unit

Also, beware of our parents, “those were the days” factors. They are usually our consultants or will sponsor some funds for the purchase. Our parents are used to big-sized layouts and will complain about, “Here small, there small…”, even though you are not buying to stay.

worst mistake when buying condo small layout

To understand why our parents feel that way, let’s do a layout flashback to the 80s.

📌 Layout flashback

In the 80s & 90s, a helper’s room with windows, a yard, a backdoor in the kitchen are common. For example, let’s take a look at this 2 bedroom at the Bayshore which TOP in 1999. It is about 1100 sqft.

Worst Mistake When Buying Condo
It is common for unit layouts to have a helper’s room with windows, a yard, a backdoor in the kitchen

In the 2000s, big balconies and long bay windows are common. In 2010s, open kitchen concepts plus induction cookers are common.

Until recently, 2 bedrooms with 1 bath are popular, and 3 bedrooms come in a compact 900+sqft. The fact is, the per-square-foot price is increasing. Developers reduce the sizes of the units and provide more efficient layouts, to make the quantum affordable. Otherwise, the prices will be too high.

So avoid this worst mistake when buying condo for investment. It is important to consider what your tenants like more than what you like when buying for investment.

Like this Article or Video?

Check out more Condo Tips here

Posted in

Looking for new properties?

Talk to our experts from Homeseller to get more insights regarding the cash flow and capital gain of your property investments!

Dennis Lim

Dennis has more than a decade of experience investing in real estate. Like many fellow Singaporeans, he grew up in a HDB flat with dreams to live in a condominium. Through careful financial planning & hardwork, this became a reality when he was 30. He now owns 3 private properties in Singapore and has helped hundreds of Singaporeans to achieve their goal of upgrading their homes in land-scarce Singapore.

Insight Topics

Connect With Us

Investor Insights

Condo Buying Guide

Condo Buying Guide: How to Choose the Right Condo?

7 May 2023

Condo Buying Guide! We’ll discuss various scenarios and provide expert recommendations based on factors like Property Type, Ownership Duration, Quantum

Read More

Does it have to be Freehold?

27 February 2023

“Does it have to be freehold?” This is a common question buyers frequently ask. Find out the answer from Dennis & his team from Property Den.

Read More
when is leasehold 99 better Freeho

When is Leasehold 99 Better than Freehold?

2 February 2023

Freehold is always perceived to be better than Leasehold 99. So, when is leasehold 99 better than freehold? Find out more at Property Den.

Read More

How to Select the Best Condo Unit | Avoid Low Floor?

19 January 2023

Planning to buy a condo? how to select the best condo unit? Should you avoid low floor and units with no views? Is 1 bedroom or 2 bedroom better?

Read More

Decoupling Versus 99-1 | Differences & Similarity

16 January 2023

Decoupling versus 99-1 strategy. What is their differences? Save up to $100,000 from stamp duties when buying private properties. Find out more in this video.

Read More



"Dennis came with strong recommendations from a dear friend. He helped me with the purchase of my first property. He was very patient and never once tried to hard sell me to buy a property. Dennis is a trustworthy and knowledgeable professional who I highly recommend with confidence to everyone I know!"




"Dennis was very helpful and has guided us throughout on the process. He managed to get good number of clients for viewing of our unit. He is very responsive and always readily available when needed. He has excellent negotiation skills as well when required for the deal"