So today we are going to talk about the six buying criteria to actually look out for when going around viewing a private property or resale condo.
Convenience
So let’s start off with number one. Convenience. I know that on Google Maps you can actually find out how near your station is. You just punch in the address, but I like to make things a bit more detailed. So when I go down for my viewings, I also actually take the time to walk to where the MRT station is or where the bus interchange, the bus stop is, and find out exactly whether this is the true distance. Whether I’m going to be staying there on my own, with my family, or for renting out. I think it’s good to actually get the actual on the ground facts right. So since I’m making a trip down, I might as well do it.
Upkeep Of The Development
Number two. When you are going to a condo development, depending on how old or how new the development is, it’s good to also look at the upkeep of the building facade, the facilities, whether the plans are always withered and dead or are they blooming in all its glory. Because that will tell you how well the management or the MCST actually manages this condo. Because if you’re going for an older condominium, what are some of the repercussions if the management doesn’t manage the property well? The property will start to age quickly and look unkempt. Meaning to say that they will start looking older, even when it’s five years old, it might look like it’s 10 years already or the lifts might start breaking down and things of that nature.
In terms of monetary rise, how this affects you as an owner is that you’d probably see an increase in your sinking funds contribution portion, which actually is a portion of your monthly MCST fees. Meaning you have to pay more monthly fees as you go along as the years go back increasingly.
Distribution Of Units (How Many Units Per Level?)
All right, moving on to the third point, we’re going to talk about the distribution of units on a level. When you actually go up to a certain level, or even when you go to a block, how many units are actually sharing the lifts? So if, let’s say, you have two lifts in that block and there are 10 units that are sharing it, that’s a ratio of one is to five. But if you go to another block and you see that “Hey, there are two lifts, but there are only four units in this block”, that means that you are in a ratio of about one is to two. Which means that you probably don’t have to wait as long when you are trying to take the lift down or going up to your unit as well especially during the morning peak hours or when you get home during the evenings from work.
That also adds to the number of people that will probably be walking around in the corridor. So the less number of units you have per block increases the exclusivity and privacy of the unit. Which might be a plus point when we are trying to resell it. People who prefer more privacy, usually do not want many people walking along or past their main door or their corridor.
Size Of Development
The number four is the overall number of units in the development. We’re talking quite a bit about the units because this will bring up a few points. All right. Number one is that will there be enough parking lots? In certain condo developments that we have been to, let’s say there are 500 units there, but there are only 470 parking lots. So what does that mean? Chances are, these kind of developments are usually meant more for tenancy or for renting out, because they have really catered a lesser than enough number of lot as compared the number of units in this development.
The second thing is condo facilities. So today, most of the condos have more facilities. Let’s say you have 30 facilities, but the condo itself maybe has 600 units. So that’s quite a good spread as compared to, let’s say you have the same condo of 600 units, but you only have 10 facilities. That means probably when you actually choose to go swimming, there might be tons of people in the pool. So that’s one example. Hope it gives you a good analogy of what I mean by the total number of units actually makes a difference as well.
Occupancy Rate
Moving on to point number five is the occupancy rate of a building. So when you go to resale condominiums, that means they are already built and there are people living there. But when you’re walking the grounds and you see that actually a lot of units are empty, then it might be signs of the development being not as it should. There could be a few possible reasons. One is that maybe this place is not very easily tenanted because of the convenience of transportation or other various factors. Or there might be other factors, that it’s near a highway, maybe this block is always very noisy, people don’t like it, that’s why there’s lesser occupancy. These are some things that would affect the sale of the unit in future or the demand for this type of unit in this particular development.
MCST Fees
Now, the sixth item is actually the overall MCST fees. So usually, MCST fees, for most condominiums, would include the car park lot. However, if you look at smaller boutique developments, let’s say they are less than 40 or 30 units, sometimes, the developers or the MCST do not price in the car park lot into their quarterly MCST fees. So this kind of development, few things that happen is that: one, usually it’s for tenanting because there’s a high possibility that tenants usually do not drive. So by removing this, it’s good for you, if you are choosing to invest in such a unit. It means you don’t have to pay for a parking lot that’s never going to be used. However, it’s for your own stay, then you will think on the other side of the coin. Now, you have to pay extra just to park your car in this condominium. Similar to paying for season parking and if it makes sense for you at the end of the day.
So that sums up the six criterias that I would usually look out when I go viewing a property that I have a interest to invest or to buy for my own stay. I hope it was useful or helpful for you.
Shoot us a PM if you have got any queries.
I’ll see you again.
Marc Chan
Buyer Consultant, Listings Lead
PropertyLimBrothers
