Do you know that feeling when you’ve set your ideas to be one way, sailing smoothly and stress-free, only to find out it’s the other way around? Well, it could be the case for owning a real estate property.
Today, I want to talk to you about the ten annoying things you need to look out for when buying a real estate property.
We know the “recipe” for selecting the best property for sure: the location, facilities, and property potential. Yet there are more than a couple of things buyers often disregard whenever they invest in a property. Sure, it doesn’t seem as important initially, but it could bring a significant nuisance later on. Here are ten of them!
1. There are not enough lifts. You have never lived until you come to a high-rise building or condo, only to be met by a sign by the lift that says, “out of order.” Many of us braved climbing ten floors or have abandoned the idea altogether. As funny as it sounds, do check on your potential property’s number of lifts because they do break down. Things can sometimes get busy when there are renovations and building maintenance. There are also times when there’s just not enough of them to carry truckloads of people during holidays. If you have visited a friend or a relative over the new year, you probably know what I mean.
2. Disappointing furnishings. This is not always the case for resale properties. Still, there are instances where a property owner tries to attract buyers with furniture and fixtures that come for “free.” As a buyer looking to save, you might think that a unit with a free fridge, air conditioning unit, stove, and other cool gadgets is a steal. Remember, if it’s too good to be true, it probably isn’t. So, it’s advisable to make sure that these freebies are actually working. Some would throw in a couple of appliances that are not working at all, or else it won’t be too long before it dies out.
3. Customized spaces. Some cabinets and spaces for appliances are specifically made to fit a certain item for aesthetics. This can be a headache for you in the future when it’s time to replace or upgrade them. I know someone who had to re-organize their whole kitchen because their new fridge couldn’t fit anywhere. Unless you have the luxury of time and money to do an overall make-over, keep an eye out for this.
4. High maintenance fees. It shouldn’t surprise any homeowner to pay a monthly maintenance fee. But if it goes beyond your budget, that could be a sizeable load to carry.
5. Rising share values. Share value, in a nutshell, is your portion of the condo unit. It dictates the amount you would pay for maintenance, influence your voting rights on property concerns, and proceeds should there be an en bloc sale. The higher your property’s share values, the higher shall the costs be. The average cost per share value right now is $70 or more per square foot, depending on your property.
6. Blocked views. You might be promised stunning views of the city initially, but after a couple of years, you might find them obstructed by other high-rise developments. So, before you purchase that premium unit with spectacular views, request the master plan first. You will need to have a keen eye for Gross Plot Ratio (GPR) which states how many floors surrounding properties will be allowed to go up. A GPR 2.1 allows for 21 stories, while a GPR of 2.8 can be as high as 36 stories. Counter-check this with the unit you’re eyeing before signing a contract.
7. The cons of living nearby an MRT Station. There are pros and cons to living nearby an MRT station. For one, you get accessibility, but you’ll also have to deal with the noise every time a train passes by. Perhaps you wouldn’t mind having train tracks as your daily view, or you’ll say that your kids would love seeing them pass by. But do consider the rattling windows and some risks of this scenario.
8. Noise pollution. Some homeowners were shocked to find out how noisy and busy their condos were until they moved in. This might be so if they viewed their units during off-peak hours. Here’s a tip for you: visit your potential property during rush hour and on weekends. Have a feel of the lobby when everyone is off to work or is coming home. Walk around the neighborhood during the weekends and decide if the noise level is tolerable for you. While you are scouting, you might as well observe your future neighbors. See if they crowd the pool on weekends. Do they have home-based businesses that invite some foot traffic? It’s good to be proactive and realize that this is something out of your circle of influence, but you can decide for yourself if it’s something you can live peacefully with.
9. Road congestion. If you’re living a little far from your kids’ school or from work and have to drive there every day, the road congestion might be a deciding factor for you. Of course, the government has its ways of keeping it under control. Still, the daily traffic or commute might turn your lives around as you will need to adjust accordingly.
10. Parking space. Condos today will indeed have parking provisions for their homeowners but ask as well about how the management goes about multiple cars. You might not have one right now, but who knows? You might have more than two in the future wherein parking will be a great deal for you.
Property investment is a game of strategy, so it is wise to have these factors in check before you commit to buying one.
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Disclaimer: All information presented is based on personal opinions. Singapore Real Estate Insider is not liable for any losses and expenses whatsoever related to investment decisions made by the audience. The ideas presented are here for reference and educational purposes only.
