It is a dream of everyone to own personal property. It can be for re-investment purposes or for making it a home. Property investments have proven to be beneficial. But you must consider essential factors before buying a property. Among various options, it is generally believed that New Launches in Singapore are always better to invest in than in an existing property. Being new does not guarantee the success rate for buyers. It is crucial to consider essential factors, so your money goes correctly. We have seen a rise in Singapore Property Launches in recent years. You can find both commercial and residential property options.
Here, we will discuss key factors to help you invest in a profitable new launch in Singapore.
Crucial Factors to Consider While Buying a New Launch Property
There are many advantages of buying a newly launched property. But not every new launch can give you the same benefits. Here are some expert suggestions to help you make the right investment decision.
- Study Property Market Cycle
Your buying time can significantly impact your budget. You must learn about the property market cycle to invest at the right time. A property market cycle is the price fluctuation during different property phases. Every stage has its duration, increase and decline rate. Learning about the cycle can help you make an informed decision that will be profitable in the long run. There are four stages in a property market cycle: boom, slump, stabilization, and upturn phase. The property marketing cycle can be affected by various factors, including inflation rate, population growth, unemployment rates, economic factors, house price index, and more.
All these terminologies can seem complex for a beginner. You should connect with a trusted property dealing agency that can further guide you on different phases and the perfect time to buy a new launch in Singapore.
- Analyze Locations and Future Developments
The vicinity of the intended investment place is significant. People fail to realize the importance of future projects and developments in the area. If you want to invest in renting out in the future, you must consider the amenities provided in the surrounding. A potential tenant will look for an area where he can find all basic facilities like healthcare, schools, grocery, business areas, and more. While going through the property, discuss the future developmental plans of the area. It can greatly increase the resale value and become more profitable in the coming times.
- Identify the Type of Future Tenets
The property type and vicinity will help you identify the type of future tenets. You will get a rough idea about renting and how you can generate a passive income stream. If the building is of high quality and has better facilities, you can price it higher and define the class of potential tenants. For example, if the building is near Singapore’s famous tourist places, your potential tenants can be tourists that can pay you a greater amount for their stay.
In contrast, your potential tenants will be locals if the property is in a residential area. You will have to price accordingly and perform competitive rental research.
- Construction Quality and Facilities
Your due diligence is important. Visit the building yourself and observe the quality of construction and facilities. Go through the lift and see the quality and smoothness of service. See the interior and designs of the houses. If they have separate amenities like a swimming pool or gym, visit them and observe the type of equipment installed there. Although, the new Singapore property launches are competitive and provide greater construction quality and facilities. But for the safe side, you should examine the property yourself.
- Resale Value
Property can bring a big amount in one shot upon resale. The significance of the area will determine its resale value. There are many new launches in Singapore but not all provide the same resale value. Factors like vicinity, construction quality, and future developmental projects can play an important role in increasing or decreasing the resale value. The area should not be overcrowded as you might already have competition in the area.
- Legal Documentations and Authenticity
You must determine and verify the legal documentation and authenticity of the property. Upon your visit, inquire about a valid license and ask about legal documentation to ensure that you are not being scammed. If you miss the point and realize later, your big investment can go to waste and get in legal trouble.
This is why you must invest in known and trusted property that will give you benefits and security of investment.
There are multiple benefits of investing in property. You must determine your payment methods or installment plan for ease of payment. The factors mentioned above will help you determine the right time and place for investing in new launches in Singapore. If you are doubtful, it is better to take professional consultancy rather than risk
your investment plan.