what do condominiums provide for its tenants in Singapore

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Condominiums are a great investment opportunity for people who want to secure a stable long-term income stream and also reap the benefits of appreciation.

They provide tenants with many advantages as well as disadvantages. If you’re thinking about investing in a condominium, you should read this blog post so that you can get a better understanding of what they offer and which are the best ones to choose from.

In this blog, we will discuss some things that you need to know before buying a condo, how much value your unit would be likely to appreciate over time, and some important things to keep in mind before signing the contract with your property management company (PMC).

What do Condominiums Provide?

A condominium is a collection of units that share common facilities and services. In Singapore, they are mainly built in high-rise buildings and provide considerable level of security. Condominiums are usually divided into units of different sizes and layouts that have their own individual features.
Condominiums provide an asset to its tenants. This means that, with time, the value of your unit is likely to appreciate over time due to the increase in demand for the property’s unit type or location, which can lead to higher rent fees. They also provide a stable long-term income stream.

In Singapore, these properties are usually sold off at attractive prices soon after they are launched on the market as buyers want them to hold onto their investment for a long period of time with low maintenance costs involved; you don’t need to worry about how much your unit will appreciate over time.

Finally, condominiums provide safety for their tenants as well as protection from natural disasters such as flooding or earthquakes by providing insurance coverage for their inhabitants.


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How Much Value Will Your Condo appreciate in Over Time?

A condo is a form of investment that offers high returns. Condos are typically bought by people who want to make a significant financial commitment and expect their investments to appreciate over time. Condo investors generally own the property for at least five years after purchase and often continue investing in it for as long as they live in the unit.
In Singapore, the average price of condos has been increasing over the past few years. In 2018, prices were about 45 percent more than what they were five years ago, which means that your condo will likely be worth about 45 percent more when you sell it.

Important things to keep in mind before signing the contract with your PMC

Before signing the contract with your PMC, you need to be aware of the responsibilities that you will have to fulfill. A PMC is responsible for managing and maintaining the property, taking care of common areas, providing services such as parking, and resolving any disputes between tenants or management teams. They are also tasked with collecting rent and fees from tenants so that they can distribute it among its investors.
One important thing to note about a PMC is that they have no legal obligation to protect your rights if you aren’t their tenant.

For example, if an incident happens in your unit and it requires emergency intervention from the PMC because it’s not safe for anyone else living there, they do not have to provide this service for free.

This means that the consequences of living in a condominium could vary greatly depending on which company you decide to choose as your PMC. You should carefully consider whether or not you want to sign a contract with a private company rather than signing one with the government so that you can be sure your rights will be protected.

How to calculate the value of your condo at resale time

It is important to consider the resale value of your condo when you buy one. The general rule of thumb is that the resale value would be 50% of the purchase price. If you bought a unit for $300,000, then it would have a resale value of $150,000 at maximum.
However, there are many factors that can alter this calculation. Many factors such as location, building type and size, nearby amenities like parking lots and bus stops, and even the age of the building all affect how much your condo would be worth at reselling time.
Many people also consider other investments before purchasing a unit such as rental properties or stocks within their portfolio to estimate the future values of their units.

Pros of buying a condominium in Singapore

  • High rental yields – Condominiums provide economic stability, which is especially true for investors who use the units as an investment. The commercial properties are typically more expensive in Singapore with a lower yield. Condos also tend to offer higher yields than most other investments.
  • Rentals can be used for other purposes – The income from rentals can be used to fund other activities and investments, such as buying a property or starting a business.
  • Low maintenance costs – Condominiums generally require less upkeep than other types of properties because of the nature of the building and the unit’s design. This means that there is no need to paint and replace flooring, which saves you time and money.
  • Saving on estate taxes and legal fees – Estate taxes in Singapore are capped at $600,000 per person, so people who own condo units will not have to worry about paying any more tax on their gains after they sell their units than they would if they sold their property outright. In addition, condominiums usually come with an additional legal fee discount too.

Conclusion

A condo can be a great investment and also provide you with an opportunity to get your dream home. However, picking the right one can be a challenge. Besides reading about which ones have good rental histories, you should definitely know about what issues could arise if something goes wrong.

Keep in mind that not all condos are equal when it comes down to safety and repair work. Nowadays, most developments also have robust maintenance teams who maintain the buildings regularly to keep them safe for tenants.

When shopping around for a new condo, make sure that you ask lots of questions before investing your money in it!

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