You want to buy a home that you can sell at a profit years from now, or pass on to your kids as an asset. Here's how to pick a winner.
Suss Out The Neighbourhood
If you've got your eye on an area, research what developments will be taking place over the next 30 years. Does the government plan to build a new MRT line nearby? Will there be new malls and schools coming up? These things could add value to the property.
If you'll only be able to invest in a few years' time, investigate up-and-coming districts.
For instance, with the government planning to decentralise the CBD, we'll see more offices and industrial hubs shift to places like Jurong East, Woodlands and Seletar Aerospace Park.
This could make these areas more popular among homeowners. Get more information from the Draft Master Plan 2013 and the Land Transport Master Plan 2013 - these can be found on the Urban Redevelopment Authority (URA) and the Land Transport Authority websites respectively.
Spot the trends
If you must hedge your bets, go for smaller properties - think a two- or three-room HDB flat, or a private property under 500 sq ft.
These might be easier to sell or rent out in the future. That's because experts predict that, in the next 20 to 30 years, buying trends will lean towards smaller, more affordable homes.
The per-square-foot price of properties has surged over the last three years and is predicted to increase even more, making affordability an even bigger concern in the future.
Compare prices in the area
Before buying your home, find out the transacted prices of nearby properties. You can ask a real estate agent, or look up the information on the URA and the Housing & Development Board websites (under their E-services section).
If the value of these properties has been going up, it means the value of yours may likely rise in the near future.
Her World
Saturday, Sep 13, 2014
Source: AsiaOne (13 Sep 2014)