There is no decision in life that should be taken in a moment. You should always give a good thought to a decision before plunging onto aside. The same goes with buying a high-rise luxury property Singapore. Whether you are purchasing the property for your personal use or you are buying it solely as a good investment.
So, if you are buying a high-rise condo to live in, it will not give you any income at present, but its value would definitely increase over time, resulting in a good investment.
However, if you are buying a new condo launch for renting out, it definitely is an investment, and a lot needs to be thought before going ahead with the decision.
Here are a few factors that help to determine whether a property is a good investment or not. Read on to find out whether the new launch high-rise condo you are planning to buy is a good investment or not….
Whether you buy a luxury property in Singapore or a studio apartment in Singapore, location is the key in determining its worth.
Well, high-rise condos and buildings are often at prime locations and easily accessible. Schools, public parks, hospitals, shopping centers, train stations, and bus stations are all in close proximity to the luxury property. Hence the property would be a hot cake for the buyers and renters.
However, if the location of the high-rise condo is not central, it would be difficult to rent out as no one would want to live in an isolated area where accessibility is a problem. So, if you fail to rent out the property, there is no reason to buy it for an investment purpose.
When you are buying a luxury property Singapore for investment purposes, the first that comes to your mind is whether this property is suitable for renting out or not. So, always check whether the property in the neighborhood is rented out, and there are many people around who would be interested in renting the condo.
Also, an investment would be of no use if it doesn’t earn you extra income. So, it is always better to check what other condos in the neighborhood are rented out for and what would be an estimated rent for your condo. After that, you need to do the math.
EXTRA INCOME = RENT – EXPENSES
Expenses can be HOA fees, mortgages, and other expenses. So if the result of the equation is positive, go for it. However, if the result is negative, look for another property.
What is an HOA?
Well, HOA is Home Owners Association, and HOA governs all high-end luxury condos.
So, what does HOA do?
The HOA is responsible for the maintenance and upkeep of all the shared areas like hallways, amenities, cleanliness, etc. Although HOA is responsible for the cleanliness, they definitely are not the ones who pay for the job.
So, you have to pay an HOA fee, which can be a hefty amount to pay, along with the mortgage. And paying a hefty amount every month along with the mortgage can be difficult for some.
Yes, you read it right!!
The good thing about HOA is you don’t have to worry about the cleaner not cleaning the entrance or mowing the lawn. HOA would take care of all this extra work and responsibility.
Moreover, you would also be saved from significant expenditures of repairing the roof or water tank. As the condo is a shared living experience, all these hefty and burdening expenditures are also shared, and you are not solely responsible for paying for the repair work, unlike you would do in a house.
You are only responsible for space and appliances within your condo. But different condo HOAs have different rules. So, always read the condo documents carefully before buying the property.
Buying a house or a townhouse in a posh area can be out of the box for some people. However, the cost of purchasing a luxury condo in these areas is relatively lesser than a house. Moreover, you would also have all the amenities like a swimming pool and gym, which would be difficult to afford if you opt for a house or townhouse.
The primary reason people buy or rent out a luxury condo is the quality of amenities they get with it. Elevators and un-house gyms are just standard amenities that you will get anywhere. Exceptional amenities are something that everyone looks out for.
High-rise luxury condos that offer great amenities in the shape of swimming pools, spa, special mall exits, and many others are something that will attract people, and chances are your property would rent out quickly and at good rates. However, the better the amenities, the higher the property rates would be.
All condos provide 24/7 security services. There are surveillance cameras everywhere, a security officer, and intercoms to let only known persons in. this is a great added feature that would help rent out your condo quickly and at a good premium.
Condos are like community living. There are some condo rules that everyone should follow, and violating them can be a big issue. Rules like no color changes to the exterior wall or door can make you feel uncomfortable, and you might start thinking that buying a luxury condo is not a good idea,
However, rules like no business activities from a home office or no changes to the condo’s interior or exterior can help maintain the property and save it from any unwanted activities. Ultimately these rules would be beneficial in the long run and would protect your property from depreciation.
With all the positive aspects of buying a luxury condo as an investment, additional charges are something that can deter you from buying it. Condo fees generally increase every year with inflation. You might be burdened with hefty one-time special assessments you will be needed to pay for special projects like roof repair or parking pavement renovation.
So, always check your financial position before buying a luxury property in a new condo launch. Because despite being a great investment opportunity, with condos, your expenses are always increasing.
We hope our guide would help you in finding the best luxury property Singapore for you. Luxury Home Singapore is a platform to showcase a selection of Singapore’s finest luxury real estate and high rise condos to the privileged few. Contact Us to find the best luxury condos and properties.