Singaporeans are always looking for good buys. so as property buyers in Singapore. So what factors arbitrate a good buy? Let’s study these factors.
The 4 “A” factors in choosing a good property whether it is for Residential, Commercial or Industrial, investment or own Stay are: Affordability.Accessibility.Amenities.Age.
Buy what you can afford, so you won’t be forced to sell at the wrong time when you can’t hold. If the total quantum is low, risk will also be comparatively lower. It is easier & faster for a property to appreciate from $500k to $1mil than from $5mil to $10mil. In a bear market, there is also a lot more room for a $5 mil property to drop whereas the $500k property downside is limited.
MRT? Bus? LRT? Expressways? For rental investment properties, accessibility is the top priority for tenants consideration. One can be assured that the property price will be strongly supported by the high rental income if it is strategically located near MRT stations, LRT stations, Bus interchanges or it is easy accessible to major expressways. One of them are Kovan Residences and Kovan Melody which are located just above Kovan MRT.
In recent years, mixed developments are highly sought after as it offers the All-In-One convenience. Eg. Centris in Jurong, Greenwich, Watertown @ Punggol, Kensington Square etc. With traffic getting increasingly congested, more & more people are looking to cut down on travelling time & look at properties that have plenty of amenities at their doorstep.
With the recent tightening measures on lower loan-to-value from banks & CPF housing withdrawal limit , it will become tougher for buyers to finance older properties with shorter leases. At the same time, human as emotional creatures will always be fascinated and excited by new launches, designs, concepts and technologies. The same can also be said of Cars , clothes, properties and every other products.
If the property fits into these 4 “A”s, probability of having a good capital appreciation & rental yield are comparatively higher too. (Eg. Kovan Residences was launched in 2008 at around $900psf & today transacting at around $1300psf & does not take much effort to rent out).
So dear readers, the next time you are looking to purchase a property, remember the 4 “A” factors.
Source – CPF.gov.sg , Far East, MAS