Education
Hi guys, thank you again for your time. For today's segment, we will be talking about spotting undervalued property. In our daily life, we too look for discounts whether we shop. Hence, the same principle also apply when we buy property. So how do we spot for undervalued properties And there are my 4 ways to spot undervalued properties 1. Decide on the budget The first and most important aspect of any purchase you make, either small or big, is the budget. So how do you decide on the budget? You will need to assess how much cash and CPF you have. For bank loans, you will need to prepare at least 5% of the property value in cash and 20% in CPF. For HDB loan, you will need 10% CPF and the rest can be paid through a HDB loan. If u are paying price above valuation, the excess must be paid by cash 2. Decide on the area This further streamline the number of properties that you are looking for. I would recommend to get homes that are based on your needs such as being near your parents m, your workplace or your children’s school. At least if you buy a home that is based on your long term needs, you can justify it and not have buyers' remorse later on. For the more risk adverse, there are some areas in Singapore that are undergoing major transformations. You can visit URA masterplan to learn more. 3. The size/type of the house After you have decide on the budget and the location, then u will can decide on the size or the type of property. I personally feel that the budget and location is more important that the size or the type of the property. But it is one of the considerations that you have to make as well. You should not over extend yourself financially just so u can live in a bigger house in the area of your choice. Neither should you get a bigger house which is not in an ideal location for you. 4.Use property search engines PropertyGuru, SRX and 99.co are some of the property search engines I have personally used. They can help you spot undervalued properties They, too, do have tools to check for past transactions history. Hdb also provide the past 1 year resale HDB transactions. For private homes, URA provides the private property transaction for the last 3 years. There are my 4 ways to spot undervalued properties. If you haven't notice, my emphasis is putting your needs first and not the buying process. That is more important than buying things at a discount. How many times have we bought some things at a discount and regret just after. I hope you have learn something from this segment and I wish u all the best on your next property journey.