It is known that when choosing a property, real estate prices are influenced by a variety of factors. Locations play an important role, so is the upcoming government’s transformation plan that will determine how much you’re going to profit next.
Let’s take a quick look at the TOP 7 factors and how this is going to be a survival guide for homebuyers & investors! Before we proceed, here’s a fun fact. These 7 factors are taking the initials of this keyword: FASTEST. So if you’re going to make a million-dollar big ticket purchase, don’t forget this magic keyword here.
F Future Development (Masterplan)
URA Master Plan is a future roadmap for developments across Singapore. By understanding the plan, you can get an idea of what future developments may impact the quality of living, and the likely value of a property you are interested in.
A Active Sales Activity
Transaction volume is one of the criteria that is important when it comes to property investment. It determines how easy it is to sell the property in the future and it can affect the valuation of the property. In general, when there are more sales transacted and there will be a surge in prices.
S Size of Development
In a bigger size development, there are more units and in other words, more properties in the development will put up for sale. In thi aspect, the increase in transactions naturally pushes the price when there is competition among sellers. Constant transactions can be seen as advantageous as it could result in incremental gains as each unit is sold at a slight premium to the last.
T Transport Network (Mainly MRT – Existing or Future)
Properties with existing transport networks are launched at a higher premium, compared to launches that are expecting a future transformation. While in property analogy where buy-low-sell-high applies, it is understood that entering at the phase with potential future developments will fetch a higher gain compared to existing ones.
E Education Institution (Top primary school/Int’l School / Tertiary Inst)
Being near a good school can increase the value of your home. One survey found that 20 percent of homebuyers would pay more than their budget for a home near a good school. It is proven that when there are well-sought schools, resale properties will continue to enjoy great demand.
S Share of Local Ownership
If you are looking to invest in a property with an exit strategy to make a gain upon T.O.P (Temporary Occupation Permit), share of local & foreign ownership will affect your exit strategy. Take for example, if today you invested in development with higher foreign ownership, this development is unlikely to induce more transactions for sale during T.O.P, which made your exit strategy less likely to make a higher profit than expected. Higher share of foreigner ownership will be good for long term investment with the aspect of rental yield as compared to local ownership.
T Tenant’s Choice
Some regions are tenant choice, like near to business parks, CBD or holland, river valley. So if you are looking to invest in a long term, as a portfolio, leasing out should be what you’re looking for. That’s why one must invest in the tenant choice’s region.
If you wish to find out more in details of the aspects that will implicate your future investment, it is time to discover further before you make your purchase. My name is Jen Tan, drop me a private message or give me a call at +65-90662926 & we will get back to you soonest.
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