In Singapore, the Executive Condominium (EC) homeowners can’t sell to any buyers before the span of five minimums five years’ period, Minimum Occupation Period (MOP) similar to other HBD flat regulation processes because Executive Condominiums (EC) is a hybrid of the private housing authority and public as well. After the MOP period, many Executive Condominium (EC) homeowners will ponder about if they should sell, hold on or reinvest somewhere in any other property choice.
1. Are your neighbours selling?
Like other property, be it Housing Development Board (HDB), or the recent MOP EC, numerous homeowners begin to cash out when qualified to sell. There are several reasons that the homeowners are selling the property. They may be eager to move to the prime location when they come in the position to bear the expenses. On the other hand, some may be cashing out to go for smaller homes compared to the ones or maybe deciding intending to downgrade to the HBD flat while depending on the profits of their current homes. Besides, some cash out with the motive to reinvest somewhere into other better properties or instruments choices. Supply and demand are the key things that play crucial roles in marketing. Many neighbours will sell out in the initial stage when the EC reaches the MOP.
It would be best to watch the supply and demand factors that affect your selling price. Let’s take the scenario of bundles of homeowners looking to sell out the properties. At this moment, there will be a lack of demand but a surplus of supply. This would lead to a downstream of the price of the property. As a result, the will be less chance to get a reasonable price for your property.
2. What is happening in the market during the intended selling period of the property?
In the real estate investment matters and while analyzing it, one of the ways to consider is to research the neighbourhood via the URA Master Plan; maybe some upcoming plans can result in enormous growth.
Generally, people know about the potential fluctuation or increase in the price when buying real estate. But, as a seller and property owner, you should wander around in your surroundings and research whether there will be any potential price hike for your property, and do sell accordingly. For instance, some mega developmental works will start in your area. If there is some significant development in your location’s infrastructure, there will undoubtedly be potential growth in the worth of your property. Therefore, you should sell out keeping in mind these facts and figures so that you meet good value for your property.
3. What is your future plans when you sell your property?
Profit and loss of either of the two is the ultimate consequence of investment. Mostly, the homeowners see the one side of the situation and count the profits margin alone without considering the other side. So be cautious about your plans and then make decisions if you find it comfortable to meet with your other aim with than cash-out.
Before buying or selling anything, do well research it and then move towards your final decision about your property. By doing the research, you will be making yourself safe from loss and finding the best options for you. Keep in mind that it is best to see for both domestic advantages and the investment or price aspects of your property. For example, you look for newer condominiums near areas with infrastructure or development plans with potential growth. Or may pounder on the case that your kids start to grow and you look for more prominent and convenient space and district.
4. How does the economy affect the value of your property?
If your property is struggling in the down market where property rates are correcting, we do not encourage you to sell out. However, if you are in some serious need or have any other resource from where you can make a much better profit, you should comply with your thinking.
The higher-priced properties get more affected in a down market as the price correction is more massive than the investors’ bailout. Although there may be a downmarket of your property if you hold, and once the market starts to blush again, you will be getting a better worth of your property, significantly higher than selling out in the down market trend. For instance, take the times of the COVID-19 pandemic. There was a downtrend in the market of numerous things during those days. Other than the economically down movement of the market, sometimes the Government introduce new policies which affect a lot as well.
5. Can you afford it?
In a nutshell, remember you should buy or invest after thorough research and keeping in mind your affordability rather than making decisions without understanding the market and focusing on your capability to bear in any unavoidable circumstances.