What is beneficial for condos in Singapore, purchase or rent?


  • admin

    What is beneficial for condos in Singapore, purchase or rent?


  • admin

    The condominium or condo in Singapore is the smartest and inviting houses, which is a type of residential property whereby a part of the development, usually an apartment unit, is individually owned but owners. Still, they have to share the common areas and facilities. Now, if you are new in Singapore for any job or business-related purpose and need to stay a bit longer, then purchasing a condo is much more beneficial than going for rental options, as it is sheer satisfactory owning a self-customized house.

    While now a day, due to mass development in real estate, which makes condos for sale in Singapore vastly available, thus it presents you good enough options of choice, from those you can select your dream home as per the requirement of you and your family. Here we will focus on the different pros and cons regarding purchasing or renting a condo in Singapore.

    The duration of stay:

    We all are having a clear concept that is purchasing is always beneficial than subletting, at least from the aspect of future investment. But if you are planning to stay for very little time, say less than 5 years, than purchasing will be a much more cumbersome process for that short period. So in such a scenario, renting will be beneficial than purchasing a condo in Singapore.

    HOA fees:

    A homeowner’s association fee (HOA fee) is an amount of money that must be paid monthly by owners of condominium units, but the renters may not have the same obligation. Also, some more additional charges may be levied for the owners, which might not be applicable in the case of renters.

    The financial aspect:

    The financial issue is also another factor out of many for most people deciding on whether to buy or rent. For those who are looking to buy a property and sell it within the next 5 to 10 years, then you may find that the gain may not be as much as you wished for. So regarding that, you need first to decide accordingly.

    Cooling measures:

    The property cooling measures in the real estate sector in Singapore that are put in place since 2013 have helped to normalize property prices, which was much higher earlier due to the huge increase in property prices over the last decade. That makes the property price unaffordable and set the rent much higher. Now, after normalization of the property price, the rental price has also fallen at a much faster rate as compared to the prices of condos for sale in Singapore.

    Payments:

    The monthly payments for purchasing a condo will depend on a combination of your down payment, interest rates, and loan programs. However, these rates may initially be higher than the average rental cost. But if you consider this as an investment for future yields, then this might be profitable, as, against rent, you will not be gaining anything.

    Conclusion:

    Here we have mentioned some vital factors regarding condos for sale in Singapore, which you need to keep in mind at the time of purchase or rent a private property. Here purchasing will be beneficial for the long term also as an investment, but if you have a short term plan to stay, then subletting one will be profitable as per your planning. One of the biggest draws of condo ownership is freedom from maintenance, so form investment purpose purchasing a condo will be beneficial than renting one.