Is there any difference when it comes to buying landed property in Singapore as compared to a condominium? As you may already know, transactions for landed properties are more complex. It involves more legal searches on the title of the land as compared to a condominium which comes under strata title, each subsidiary owner owns a share value of the land. If you Google the definition of strata title, your answer will come out something like “the registered ownership of layers of air space”.
What about landed properties? Surely it cannot be so complicated right? Before you buy your next landed property, let us run through some of the questions which many did not think about. This will give you an understanding if you know enough & are ready to commit to your next landed property.
which unfortunately is the opposite intent of every sellers’,
which is to sell as high as they can!
Do you need to know whether the land is affected by encroachment, road widening, land acquisition act or even drainage reserved? Is it easy to compare the prices of landed properties? Will the zoning of the estate, orientation of the property or the shape of the land affect the value? What about the house number? Any concerns for number 4, 14 or 44? Do people buy or shun landed properties that are located along a cul-de-sac road? Sure, everyone wants a property within one kilometre from reputable schools be it for their children school registration or the possibility of having a wider market when it comes to selling it in the future. But what if conveniences of being near to the children’s school also mean inconveniences when hundreds of other parents are picking & dropping their children near your doorstep every day? Can you live with that?
What about the surroundings & amenities? Does substation really create radiation? What about houses sitting at cross junctions? Do you see it as a selling point since the house is “unblocked”? Or do you see it as a nuisance when headlights shine into the house at night? Sure, everyone wants to sell to a foreigner who can afford to pay a better price but can they own a landed property in Singapore?
How does it work when buying a 999 years leasehold property as compared to one which is freehold? Is there a lesser demand for leasehold units? Will the valuation, financing or the use of your CPF be affected if it is leasehold? Are freehold titles really freehold, that it is “untouchable” by anyone else if you are not selling it? Have you ever thought about all these?
How do you calculate the real value of a landed property which is affected by road reserve? Can you still build a new house in this case? Is it better to buy nearer to the main road & amenities or is it better to buy further away? What about the construction of landed properties? Which are the governing departments that you need to clear the paperwork before you can start constructing? Can you get a construction loan? What about the do and don’ts when appointing an architect? Are you familiar with plot ratio, baseline, zoning or height control & how it will affect you? Many people are not even aware that there is a high control within landed estates & not all houses can build a basement or an inground pool. Do you check the Drainage Interpretation Plan (DIP) or Sewerage Interpretation Plan (SIP)? Do you know what other factors can boost or push down the value of landed properties? Why are people concerned about buying a house next to an electrical substation which is believed to have radiation issues? What about land wastage if the plot is elevated or sits on a slope? Have you come across cases whereby the buyer paid a deposit for the landed property but realise that the bank is not going to finance it because of some conditions that are attached to the title? I have even come across a row of houses whereby every unit is freehold except the one in the middle which has a 99 years leasehold tenure? How did that even happen? Everything I shared will never be a concern if one is buying a condominium but for landed, there are so many things that buyers should watch out for! You know, I can go on & on & on because the truth is; every house is unique.
I hope you have given a thought to all these before you go out and start your househunting. The last thing you want is making a wrong decision and losing your option money when you realise that this is not the right property or the property is not free from encumbrances. Trust me, you will not be a few thousand dollars, but tens or even hundreds of thousands of dollars.
Homebuyers, do not fret! It sounds complicated & it is. Since 1992, we have successfully brokered hundreds of landed houses & come across many complicated cases. Be it an outright sale, an estate sale or a sale with complications arising from an unexpected situation, no job is too difficult for us. And that is why we do not work alone but rather; we work closely with our business partners. Our partners include lawyers, bankers, architects & builders. They are here to support us in our mission to support you in making that right decision.
By the way, you do not even need to pay us even when we are representing you in your home search. Does this sound good or awesome?
Have a chat with us before you buy your next landed property. Our contact info is just below. We will show you not just where the pitfalls are but we can also share with you the market trends over the years & for sure, you can trust our negotiation skills in this niche sector. After all, everything comes from experience & we have been selling landed properties since 1992.