As the city-state continues to grow, so does the demand for housing. In order to accommodate this demand, developers continuously look for new ways to build more homes at a lower price. One way they’re doing this is by incorporating developments with condominiums.
Today, condos are one of the most popular types of housing in Singapore because they combine many of the best things about renting an apartment or house with all the benefits of buying a home.
If you’re planning on becoming part of this rising trend, then you’ll want to read on to learn more!
What Is A Condo?
A condo is a type of housing in which you don’t own the land your house sits on. Instead, you rent or buy a unit in an apartment building. It typically has an owner who keeps the building and its property separate from the units themselves.
The owner can regulate who lives where and make decisions about how to maintain the property, but they are not responsible for everyday maintenance such as power, water, and gas bills.
The benefits of buying a condo include that prices last longer than a traditional home because they’re less likely to be torn down by developers.
Condominiums also have lower building maintenance costs because they don’t need roofs replaced or walls repaired as often as homes do. Additionally, condos are more secure than houses because they’re built with steel frames that can support more weight than wood-framed homes could ever hold.
What’s the difference between a condo and an apartment?
While a condo may be the same size or even bigger than an apartment, they are still marketed differently. Condos are typically marketed as a permanent residence where you can call home and enjoy all the benefits of owning a home without having to worry about paying for upkeep or doing much work on it.
In contrast, apartments are only rented by occupants who often have to take care of their individual living environment before renting it out again.
Condos are also developed with more amenities that benefit residents like access to clubhouses, swimming pools, gyms, and other common areas for locals and visitors alike.
This is especially beneficial for those who love to enjoy leisure activities outdoors and in nature such as playing golf at one of the many golf courses in Singapore!
Why buy a condo in Singapore?
There are many benefits to buying a condo in Singapore, but the most important one is the lower price. Condominiums can be expensive, but they’re still cheaper than many other types of housing. For example, you can find a condo in the city for as little as $1 million.
If you buy a condo at this price point, it’ll save you so much money on property taxes and maintenance fees that it’ll end up being more affordable than renting a home.
Buying a condo also has plenty of advantages that aren’t related to just the price.
For example, there are plenty of amenities and services offered to residents such as:
– 24-hour concierge service
– Active lifestyle facilities
– Shopping malls with grocery stores
– Clubhouses with swimming pools and saunas
Rental yield for an HDB condo
Many people do not realize the difference between a condo and HDB flats. When you purchase an HDB flat in Singapore, it is usually your only option for buying property as the government controls the rental market. Condos on the other hand are privately owned and can be bought by anyone with enough cash to spare.
Pros of buying a condominium
There are many benefits to buying a condo. One of the main benefits is that condos have lower maintenance fees, so you’ll be able to save money by using your own funds instead of paying for expensive repairs and renovations. You don’t have to worry about finding new tenants if you want to sell because the market is steady and there are plenty of buyers out there.
When it comes time to move, you can just let your condo go on the market, since buyers will be more likely to purchase a condo than an apartment or house.
Condos are also more secure than apartments and houses. They’re built with reinforced walls and concrete which gives them superior structural integrity in case of natural disasters such as earthquakes or fires. Plus, they come with 24-hour security, which means you don’t have to worry about intruders getting into your home at night while you sleep!
Cons of buying a condominium
There are some disadvantages to buying a condo in Singapore, but they are not major.
One of the most important things to consider before buying a condominium is the price. Condos generally sell for more than public housing because of the extra costs associated with building and maintaining condos. In addition to this, you will be required to pay condo fees which can range from $0.2-2 per square foot. There is also the cost of stamp duty which varies depending on the property and district you live in. The stamp duty charge can range anywhere from $500-2000.
Another disadvantage is that condos are much smaller than houses or apartments. This means that you won’t have as much space as if you were renting an apartment or house: You might find that one single unit would function as your home office, study room and dining area for example, leaving little space for personal belongings like furniture and photos.
Finally, there is no guarantee that your condo will be in a good location; some areas may not have great public transport links or good schools nearby while others may be too crowded and noisy due to redevelopment projects going on around them.
Rental yield for an private condo
The rental yield is a crucial factor in determining whether you can afford to purchase a condo. It’s the percentage of the monthly rent that you would need to pay in order to buy your own unit.
A good rule of thumb is that your monthly rent should be at least 10% of your condo’s cost. If you’re looking for a low-cost apartment, then it’s important to ensure that the amount you would need to put down as a deposit is not too high.
The unit price will also be an important factor when calculating your rental yield because this determines the monthly rent. For example, if you purchase a unit with an asking price of SGD400,000 and have an annual rental yield of 2% (SGD4,000) then your monthly rent would be SGD4,600 which would equate to approximately US$324.
Pros of buying a private condo
There are many benefits of buying a private condo in Singapore. The first is that you can buy it without needing a huge down payment, as the developer will usually take care of this for you.
This means that you don’t need to worry about how much money you have saved up in order to purchase the property and start building equity. Another benefit is that your condo unit comes with 24-hour security which helps protect your home from intruders and theft. If your unit is still in development, then the developer will usually provide this service for a small fee each month.
Some other benefits of buying a private condo include lower maintenance fees and tax assessments compared to single family homes and apartments, and access to condos’ premium amenities such as infinity pools and gyms. You can also use condos’ amenities like pools, gyms, parking lots, study areas, playgrounds as part of your daily routine while saving on time by not having to deal with transportation or commuting.
Singapore is home to a diverse range of cultures, cuisines and lifestyles. It is also one of the most expensive cities in the world with real estate prices rivaling those of New York City, London and Hong Kong. To help combat this, developers are including more condos in their residential developments.