5 things to consider before buying your first private property

Investing in property is a common Singaporean dream. Many people purchase private property as an upgrade from their current homes or as an investment vehicle to collect rental income, and perhaps to sell it off for profit at a later date.
Here are a few things to consider before buying your first private property:
1) Your eligibility to buy private property
Singaporeans who already own a HDB flat, DBSS flat or Executive Condominium must first fulfil the Minimum Occupation Period (MOP) to be eligible to buy private property. The MOP is five years and you will be required to stay in the flat throughout the duration.
Meanwhile, permanent residents (PRs) will be required to sell their flat within six months of acquiring private property. Those who currently own private property or a Housing and Urban Development Company (HUDC) flat are not subject to such restrictions.
2) Your housing budget
Don’t look at property that costs way more than what you can afford. Instead, figure out your budget and work within it. As a guide, here’s how much new and resale private properties cost across different locations in Singapore. For simplicity’s sake, we only looked at transactions from 1H2018 to derive the average $psf price. We assumed that all units are 900 sq ft.
Market region
New Sale
Resale
Core Central Region
$2.54 mil ($2,820 psf)
$1.57 mil ($1,740 psf)
Rest of Central Region
$1.61 mil ($1,793 psf)
$1.27 mil ($1,413 psf)
Outside Central Region
$1.26 million ($1,399 psf)
$973,800 ($1,082 psf)
Source: URA, EdgeProp.sg
*Figures provided are mere estimates and should not be used for official purposes.
3) Your property’s location – central vs non-central homes
Properties located in the central or are in mature estates typically command higher prices as they tend to boast greater connectivity and a wider array of amenities like schools and shopping malls.
One example of such projects is the upcoming new condo, The Tre Ver. Located in the mature estate of Potong Pasir, the 99-year riverfront development will sit amidst...