4 Things About Buying a Resale Condo in Singapore You May Not Know About

Purchasing a resale condominium in Singapore can be an attractive option for many homebuyers. Whether it’s the immediate availability, the potential for better value, or the appeal of established developments, resale condos come with their unique advantages. However, there are certain aspects of buying a resale condo that may not be immediately obvious. Here are four key points you should know:

1. Maintenance Fees Can Be Higher Than Expected

Resale condos often come with established facilities like swimming pools, gyms, and landscaped gardens. While these amenities add to the appeal, they also contribute to higher maintenance fees, especially in older developments. Over time, older condos may require more upkeep, which can lead to an increase in monthly fees to cover repair and maintenance costs. Before making a purchase, inquire about the current maintenance charges and any planned increases or major repair works.

2. Renovation Costs Could Be Significant

While many resale condos are move-in ready, others may require substantial renovation to suit your preferences or address wear and tear. Check the condition of the unit carefully during viewings. Look out for aging fixtures, flooring, or plumbing systems that might need updating. Renovation costs can add up quickly, so it’s crucial to budget for these expenses in addition to the purchase price.

3. Financing Rules Differ for Older Condos

The age of the condo can affect your financing options. For condos with shorter remaining leases, banks may offer lower loan-to-value (LTV) ratios, meaning you’ll need to fork out a larger down payment. Additionally, your ability to use CPF funds for the purchase may also be restricted based on the remaining lease. Understanding these rules in advance can help you plan your finances and avoid surprises during the buying process.

4. Potential for En Bloc Sales

One of the unique aspects of owning a condo in Singapore is the possibility of an en bloc sale. While this can be a windfall for owners, it’s not guaranteed and can take years to materialize. When considering a resale condo, research the development’s en bloc potential. Factors such as location, land size, and recent en bloc trends in the area can influence this possibility. Keep in mind, however, that buying a condo purely for its en bloc potential is speculative and may not align with your immediate housing needs.

Conclusion

Buying a resale condo in Singapore involves more than just finding a property you like. From understanding maintenance fees and renovation costs to navigating financing rules and assessing en bloc potential, being informed about these lesser-known aspects can help you make a sound decision. With proper planning and research, you’ll be better equipped to secure a condo that fits your needs and lifestyle while avoiding unexpected pitfalls.