Buying a house, for some, is also buying a place to call home for several years. It involves a large amount of capital up front (25% down payment whoosh!), and ties you up financially for at least 3-5 years. To share with you why we bought a unit at The Florence Residences this past weekend, I thought it’s important you first know our background, so you can understand why we made the choice we did.
We’re a newly married couple (got married in September last year), and now we’ve also got a baby on the way (it’s a girl, we’re super excited). I’m Singaporean and my husband is a foreigner, based in Singapore on an EP. We’re both in our early thirties, and have been living in a rented apartment for the past 5 years.
Why we didn’t buy an apartment all those years ago was simply because we were not ready to settle down (in the traditional sense). Now that we’re moving onto the next phase of our lives together, it only makes sense that we invest in a property for our future and that of our expanding family.
Our characters are both logic-driven than emotional. When it comes to investing in the right property, we made sure to discuss thoroughly what our requirements and wants were/are (which will be revealed in this blog post). After making some calculations and considering the current market, buying a new launch development made more sense than a resale unit.
Being realistic, we know that we wouldn’t be able to find a place that fitted all of our requirements and wants 100%, especially since we had a limited budget (like with most home buyers). Therefore, we focused mainly on our “super-must-have-requirements” that cannot be compromised no matter what. Everything else, to us, would be a bonus.
Now that you’ve gotten a good idea of our profile, here are the top 10 reasons we invested in a unit at The Florence Residences.
1. Fits Our Budget for Our Desired Unit Size
We’re buying a unit for our own stay, which would include 2 adults and potential up to 2 children. We’d need a good enough space for everyone, so preferably a 3-bedroom unit, or at least a 2+study. If we end up having 2 kids, they could share the same room (or not, depending on their ages) and the 3rd bedroom would be used as a study/guest room/home office. The unit we found fits our budget as well.
2. The Florence Residence is a new launch development.
This year alone, there are at least 60 new launches. This means about 1.2 launches a week. Normally, for new launch projects, developers keep launch prices at a minimum to attract buyers. What’s more: this being a buyer’s market, they are under even more pressure to price projects competitively.
Here’s a realtor secret: Developers increase prices of the projects gradually with time up until TOP date. This means that buying a new launch before any price increase gives you a first mover’s advantage, where you buy in at the lowest possible price. This gives you the largest possible margin when you sell in the resale market with capital appreciation in future.
When we bought our apartment, the prices were still at launch pricing levels, and there were still a lot of units to pick from. If we had waited, we likely would not have been able to pick our choice unit in the end for the price that we got.
3. Reasonable PSF for Premium Stacks
The general PSF for units at The Florence Residences range from about $1,3xx-$14xx psf. The premium stacks are about $14xx-$15xx psf*. Comparing with The Affinity nearby, where general pricing ranges around $14xx psf onwards for a non-premium stack, it is slightly more affordable. While The Affinity wins location-wise (and is a great option for rental in future), buyers like us who don’t need our apartment being absolutely near an MRT station (see point no. 6 in Part 2 coming up) will benefit from the lower PSF pricing at The Florence.
We also took into account all the new launches slated to be launched (or were already launched) this year, and looked at their:
- land bid prices
- calculated potential launch psf pricing and quantum
- potential for growth
Going through all the data we collected and compiled, The Florence Residences checked most of our boxes.
4. Good Facing Unit Better for Selling
I believe that buying a property is an investment, and with all investments, you need to make money out of it at some point or it becomes a liability. Thus, when we selected a unit, we made sure to pick a unit that has a good selling point right from the get-go.
Our unit is in a premium stack, has an unblocked landed view and no direct west sun. We picked a good floor level so that the PSF was still priced at a good quantum, one that future potential buyers will find reasonable even with an eventual increase in value.
5. The timing was right.
Two factors indicated the right timing for us:
- new launch pricing during a buyer’s market (see point no. 2 above)
- We were financially ready.
When it comes to making an investment, you must enter at the right time. Once you have committed, it is then a waiting game – hold and wait to sell at the right time.
Although buyers are currently more skeptical, wary and afraid of committing due to the new cooling measures, I’m 100% with Warren Buffet on this one: “Be fearful when others are greedy and greedy when others are fearful.”
Part 2 of this blog post is now live. You can read it here.
Retirement & Legacy Planning with Property, Propnex Realty Pte Ltd
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Learn more: www.roxannechiarealty.com
Matthew Lam Division | Marcus Luah Division
🏆 PropNex Overall 2018 Champion Team
🏆 PropNex Singapore & PNG Champion District
As I am a CEA-registered real estate salesperson, I am licensed to market and sell property in Singapore. My clients come first in all my dealings and I look forward to establishing a long-term working relationship with you. If you’re in your thirties and still don’t own a property, do reach out to me. It will be my pleasure to help you in your retirement planning with property.
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*Any prices quoted are general figures at launch date, and are subject to changes.