5 things to check before purchasing old properties in Singapore

1. 5 things to check before purchasing old properties in Singapore Many people are searching for a house for sale in Singapore, now if you are having an economical budget then opting for an old property is a great idea, but there are certain checkpoints to follow before buying an old property in Singapore. The major points you need to check before opting for old or used properties in Singapore; 1. The remaining lease period of the property As stated by the LTV (Loan to Value) limit, the maximum amount a bank can lend you for a second property is 55 percent of the total valuation or purchase price, whichever is lower. Now if the remaining lease period is too short, i.e. less than 60 years, the maximum loan percentage of the purchase price can drop to 50 percent or less than that. So the remaining lease period is a vital measure in case of taking out a mortgage from the bank, as the amount of down payment varies with the remaining lease period, hence the shorter lease period will affect the LTV limit and that will increase your expenditure or as a higher down payment, apart from the stump duties required for purchasing a property. 2. Maintenance requirements –in case the management council isn’t responsible For an old or used property the renovation cost is higher, so in case the management council has given up the responsibilities regarding maintenance, then the buyer needs to compile more expenditure, to accommodate properly. Also, you need to check the maintenance fees for the maintenance of the pool, gym, clubhouse, and other amenities available in that apartment. 3. Check the condition of the interior For an old property, the interior renovation cost is a major factor, which includes the distorted or lead wall paints, fermented wooden floor, rotten wood at windows and door frames etc. To repair all these is a sheer cost-effective factor, so if the interior of the old house is in such a condition, then this will affect as a notable increment in your budget. 4. The status of internet connectivity Now a day’s internet availability is a vital concern for each and every individual, so in some old apartment, the cables of broadband might not be in a usable condition. So you need to set up the entire system, which will cost you as new. 5. Limited time available to recoup your investment For an older lead hold property, you have a limited time to recoup your investment in case of further rent out. So you need to look up the historical rental rates for the area and apply the difference of 30 percent, between the market value of an asset used as loan collateral and the value ascribed to that asset when used as collateral for that loan. In such scenarios, advice from a professional property agent will be of your help before investment.

2. Conclusion Many people migrating to Singapore for living purpose, the property agents of Singapore helps them to connect with the real estate owners and developers, who helps these individuals to find their ideal house for sale in Singapore, that can be HDB flat for sale in Singapore or condos for sale or any other commercial properties through their handy detail study on properties; i.e. by price, area, or property type. Also they can guide by checking the condition of the old property, which will help you to find old properties in Singapore.