If you want to become a homeowner, the first question you need to ask yourself is the type of property you want to invest in. Is it a single-family home? A plex? Or do you prefer to buy a condo instead? there are many new condo upcoming in 2021, Canninghill Piers new launch condo is one of the choice when you consider buying a condo.
The latter is particularly appreciated in urban centres such as Singapore, because it is more affordable than a house. Despite this, buying a condo remains a major transaction that should not be taken lightly. This is a significant investment, which can bring many advantages, but also several disadvantages for unwise buyers.
To avoid turning your experience into a nightmare, experts have prepared a list of five mistakes not to make when buying a condo.
Mistakes to Avoid when Buying a Condo
1. Succumb to low condo fees
What could be more tempting than to find that the fees of the condo you want to buy are ridiculously low? Beware, however, of these attractive but underestimated fees. They usually cover only the minimum maintenance of the building and, when more maintenance is required, you will have to pay a surplus.
Indeed, when unforeseen events occur or additional repair work needs to be carried out (balcony replacement, roof repair, etc.), you may have to pay special contributions. These could surprise you by easily amounting to several thousand dollars, depending on the work required.
Before buying your condo, check the budget allocated by the condominium to the contingency fund, that is to say, to the money set aside for major works. A condo fee of 5% is generally insufficient to meet long-term maintenance needs and various unforeseen events that may arise. This may make it more advantageous to pay higher fees each month to avoid additional contributions.
2. Do not check the by-laws of the building and the declaration of co-ownership
Investing in a condo also means investing in a living environment. It is therefore essential that you take note of your neighbours, as well as the various cohabitation rules contained in the declaration of co-ownership.
Feel free to ask questions and visit the property several times to understand the atmosphere and habit of the other owners. Do they live in the condo or rent it? Are there more pensioners or families with young children? These are some factors that could confirm or reverse your purchase decision.
Also read the various cohabitation rules of the declaration of co-ownership, which aim to ensure the quality of the building, its use and its operation. You will know precisely your responsibilities as a co-owner and what it is allowed or not to do in the building. For example, some condominiums may prohibit barbecues on balconies, animals in apartments, etc.
By reading the regulations in force before signing, you will be able to determine whether the living environment is right for you or not.
3. Forget to put promises in writing when buying a condo on plan
Buying a condo on plan offers many advantages, such as the ability to choose from several models, make changes to customize its space, enjoy the best choices of location in the building, etc. However, be sure to put all the elements discussed with the sponsor in writing.
This is a protection against possible changes that the proponent may make. A written contract with all the elements discussed has much more weight than simple words exchanged and ensures that you have the condo of your dreams.
4. Neglect pre-purchase inspection
It is essential that you have your condo inspected before concluding the purchase, whether it is new or used. You would especially not want to invest in a home with many potential problems!
The pre-purchase inspection, carried out by a building inspector, will detect construction or maintenance failures and possible risks to your safety. Don’t limit yourself to your private home: also inspect common areas, windows, roof, etc. If renovations are required in either of the common components, costs may be added after the purchase. It is therefore better that you are aware before signing.
In the event that potential problems are discovered, you could negotiate the purchase price downwards, demand corrections or withdraw completely from the transaction.
5. Do not analyse market comparable
If you do business with a real estate broker, he knows the market of your region and your sector. He will therefore be able to advise you and tell you if the asking price for the condo you want is reasonable.
However, if you decide to take the purchase steps alone, take the time to compare the condos for sale in your area, through websites for example. Even if you do not have access to a directory as accurate as that of the real estate broker, you can still get a general idea of the market. You will then be able to more easily determine if the sale price of your condo is appropriate.
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