The biggest perks of a landed versus condo home include more leeway to make additions and alterations, and more privacy (plus less noise) from neighbours. In contrast, condos typically offer complete recreational facilities, are situated in prime districts, and offer greater variety of options to choose from. They are also more affordable in terms of price quantum, andrelieve homeowners of undertaking the maintenance and repair of the property.
When you invest in Reits, you buy shares in a pool of income-generating assets, so one under-performer will not ruin your investment. You pay a smaller lump sum than
physical property requires, and save yourself the hassle of spending time hunting and checking physical property. You also receive a regular income since Reits listed on SGX invest in income-generating assets, and you must pay out at least 90 per cent of their income as dividends to minimise tax.
However, Reit managers may or may not always act in your best interest, and you enjoy little capital gain since Reits’ strategy is to keep assets for recurring income. With Reits, you are also not able to receive rental income from a tenant. Acquiring physical property also means the purchase can be financed by a bank mortgage at a relatively lower interest rate compared to security margin financing.
– Location and proximity to MRT stations, amenities, schools and so on. You may want to buy property in an area popular with the expatriate community, to tap the ready rental pool there
– Whether rental income is enough to cover mortgage, property tax, property maintenance costs and more
– Whether the physical condition of the property requires costly refurbishments
In short, the answer is yes, because real estate is an immovable asset. More homes being built near MRT stations means your property is at a disadvantage if it is far from one.
Borrowing to the total debt servicing ratio limit of 60 per cent of your income to service all your loans — car, credit cards, personal expenses and housing — will make you quite highly geared. To stay comfortable, cap your mortgage at about 25 to 30 per cent of your income — and sleep better at night.
Prices are increasing as there could bea looming shortage of new options for sale in the primary market from 2018 to 1H2020. When the price difference between mass market private condos and HDB flats widens, the demand for ECs will increase. Start pondering.
– Enjoy progressive payment plans and pay instalments according to the property’s construction stages, making it financially easier. Sometimes, enjoy freebies like shopping vouchers and lucky draws. Upon completion, of the option, pay the balance 15 per cent (in cash or CPF) of your downpayment and get your keys
– Enjoy the latest fixtures and fittings
– Typically more expensive on a $psf basis, prices are usually not negotiable
– Wait up to 3.5 years from the project launch to move into a newly-built property
– Envision your new home through a floor plan or showroom
– Pay remaining 4 per cent of the initial downpayment to exercise the Option to Purchase. And also pay the BSD and ABSD (where
applicable). Upon completion of the option, pay the balance 15 per cent (in cash or CPF) of your downpayment and get your keys
– Require renovations for a more modern appearance and replacement of aging fixtures and fittings
– Bargain with the seller and for a lower price
– Move in within weeks of sale completion
– Visit the property to see its condition and space
除了个人偏好外，选择有地房产的因素包括：更多自由为房屋进行设施增建和改 建、 生活空间与邻居隔离，更隐僻安静。公寓单位则提供更多休闲设施，地理位置一般优越，而且价格相对低，可减缓屋主的经济负担，让他们能够把资金花在维持设施及房屋装修。