Money Matters

5 Things You Should Do After Visiting A Showflat, Before You Sign The Purchase Agreement


After studying brochures and visiting the exquisite showflat, you think you have found your dream condominium. The agents marketing the development tell you that demand is high and if you are keen, you should decide quickly, perhaps on the day itself. Perhaps they will throw in some additional perks. You look around at the other prospective buyers and worry that they might beat you to it.

Before you take out your pen and chequebook for a purchase of something costing you over a million dollars, here are 5 things the savvy condominium buyer should do first.

Read Also: 4 Cheapest Condominium Launches In Singapore For First Half Of 2018

# 1 Take a walk at the actual condo site

Showflats these days can be quite far away from where the actual condominium will be built.

Every condominium project boasts their close proximity to MRT stations and other amenities. It would be wise to ascertain whether the 5 minutes to the MRT means a leisurely stroll, a brisk walk or a mad sprint. Try to take the route you will most likely take. Are there steep slopes or dark pathways between the condominium and the MRT station? This is particularly important if you have elderly parents who will be staying with you.

Another thing you would want to look out for during your ground recce is the surrounding neighbourhood. Artist impressions in brochures may portray the condominium towering over lush greenery, when in actual fact, your condominium is in the midst of an urban jungle of HDB flats or other drab structures.

One more thing you can do is to visit the site during different times, including the morning rush hour and after work. It will be helpful to see if the path leading to the expressway is always jammed, or whether you are comfortable with the noise from a nearby community centre, school or town square.

# 2 Check out prices of condos in the surrounding area

Most condo owners would like to think they are getting a great deal on their condo purchase, but is that really true?

Check how much other condos in the area have sold for recently. How does it compare to the price per square foot price of your condo?


Read Also: Live For “Free” In A Condo? Here’s What Your Property Agent Isn’t Telling You

# 3 Do the math for your home financing

No matter how great a bargain the condo is, if you are not in a stage in your life when it makes sound financial sense to purchase a condominium, then you should not jump in.

Find out what are all the costs and fees, and the timeline when they are due. After paying he option fee and downpayment, there are Buyer’s Stamp Duty and Additional Buyer’s Stamp Duty to contend with.

Get multiple quotes from various banks for your home loan and calculate how much your monthly repayment will be.  Ensure you are within Total Debt Servicing Ratio (TDSR) limits. A mortgage expert like RedBrick helps you with all that.

Also find out what are the recurring charges, such as monthly maintenance fees, homeowners’ association fees, service/admin charges, etc.

Read Also: Guide To Choosing The Most Suitable Home Loan In Singapore

# 4 Read the Fine Print

Read the fine print and if there is something that is not stated, be sure to ask sales representatives. Find out what is included in the final price – such as fittings, furniture, and choice of materials. Sometimes, materials or colours used in the showflat might not be representative of what you will be getting.

Find out what is the total gross floor area as well as the total usable floor area, after taking away pillars and partitions.

Read Also: Bought Your Dream Condominium? Here’s Why Your Next Step Should Be To Buy Home Contents Insurance

# 5 Confirm your unit choice

Mock-up models look nice, but they are more for sales purposes than to rely on for making purchase decisions. Look at actual development floor plans to know how far apart each tower block will be, how big the communal spaces are, and where facilities like the refuse collection point will be. You should also check out details like the width of corridor and where your windows will be facing.

Happy House Hunting!

When choosing a condo, take your time and don’t rush into it until you are satisfied that you are fully aware of the pros and cons of your purchase and have come to an informed decision. Don’t let the fear of missing out or ‘kiasu’ in you pressure you into committing. Happy house hunting!

Read Also: Guide To Choosing The Most Suitable Home Loan In Singapore is a website that aims to provide interesting, bite-sized financial articles which are relevant to the average Singaporean. Subscribe to our free e-newsletter to receive exclusive content not available on our website. Follow us as well on Instagram @DNSsingapore to get your daily dose of finance knowledge through photos.

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