Are you planning to buy a new property soon? If you live in a bustling city like Singapore, you may have a dilemma between buying a regular condo or a freehold condo. Both types of condos have their benefits and limitations.
Freehold condos for sale in Singapore differ from regular condos as owners also buy the plot of the unit built on. In a traditional condo, ownership rights are limited in the interior of the condominium. The owner does not hold any right to communal spaces and the land of the condo. Owners of freehold condo units may have more power over the property, but this luxury comes with a prize. Freehold condos are generally more expensive than regular units. Here are more reasons that you should consider while looking into several freehold condos in Singapore.
A higher cost of mortgage may mean cutting back on your cost of living
Everything in this world comes with a prize. As you choose to buy a freehold property, you may have to work harder, save more, or cut back on expenses. Some people may have to delay their retirement until they finally complete the mortgage to buy a freehold property. In general, a freehold condo for sale in Singapore costs 10-15% higher than leasehold properties. Are you willing to make sacrifices in your lifestyle to get freehold property in Singapore? Consider buying a freehold property only if you are very financially stable until your retirement.
Your freehold status is not forever
Buying a property in a city that promises infinite ownership is attractive, especially for residents who want to stay long-term in an area. However, certain conditions can change one’s freehold status. Government projects affecting one’s property are a prime example. One cannot protest against government projects, and authorities have the right to demolish or destroy properties in constructing a military base, an MRT line, or a government office. Yes, the government will shoulder the relocation and property costs. But be prepared for possible inconveniences like these.
Always prioritize the location of the property
Freehold condos for sale in Singapore are a luxury item. But have you considered if it is practical to buy it? Ask yourself if the freehold property is near schools, malls, the MRT, and other amenities. Consider thinking long-term. You may have been dying buying a private property today, but you might get sick of it a decade later and have to resell or rent it to others. Remember, properties that are in a convenient location may have a higher market value later on.
Consider future trends and general lifestyle changes
Decades ago, it was typical for Asians to keep close family ties, and children had to stay with their parents infinitely. However, this norm has changed recently in Singapore. When they get married or come to legal age, most people move out and find their place. If this is the case, it is impractical for parents to get a freehold property when their children move out in the future anyway. Instead of overspending, why not consider other contracts that may allow you to save money and give you a chance to save and look for better properties later in life!
Buying a freehold condo for sale in Singapore is a milestone that should come with careful thinking and consideration. The factors above should not deter you. Instead, it should empower you more and be more critical of your decision. Think carefully, ask for a second or third opinion or consult with your real estate agent for a couple of freehold property recommendations. Good luck!
Article Submitted By Community Writer