Watching the property market, especially for new private home sales this year? Before we take a glance at 2022, allow us to refresh your memory on December 2021’s stats:
In the wake of new cooling measures and the regular year-end slump, new private property sales in Singapore plunged 58% in December 2021 compared to November that same year. Overall sales, nonetheless, recorded an eight-year high in 2021. Experts believed that purchasers who were not subjected to the Additional Buyer’s Stamp Duty (ABSD) scheme will boost demand this year. These are first-time purchasers or people who have sold or plan to sell their current residential property to purchase another.
Fast forward to 2022, here’s a glance at Singapore’s new private home sales for Q1 2022.
January: Rose by 3.5%
In January, new private house sales in Singapore increased by 3.5%, following a significant drop in December 2021. Ikigai and Belgravia Ace were the only two launches in January, and the latter strata-landed development sold 77 apartments at an average caveated amount of S$4.4 million.
The majority of the customers, according to a Huttons Asia official, were first-time buyers who were unfazed by the cooling measures. He went on to say that the purchasers’ capacity to spend more than a million for the downpayment and stamp duties indicated either adequate cash flow or a hereditary transfer of wealth.
February: Fell by 22.5%
Image Credits: royalhallmark.com
Sales of new private residences decreased 22.5% in February, owing to a combination of cooling measures and global uncertainty related to the Russia-Ukraine crisis. Other barriers might include increased loan rates, property tax increases in 2023, and fewer housing alternatives as a result of this year’s lower lineup of project debuts.
The single February launch, Royal Hallmark, fared quite well though, selling about one-third of its units despite cooling measures and some uncertainty brought on by the Ukraine conflict. The percentage of transactions worth more than S$2 million also remained unchanged. In other words, affordability remained steady, owing to the market’s substantial liquidity.
March: Rebounded by 20.7%
According to recent reports, new private house sales increased by 20.7% in March, following a significant drop in February. Last month, the private housing markets showed signs of improvement, with developers selling more properties. This might be a response to the relaxation of safe management requirements, allowing more people to view show flats. As a consequence of the greater visitor traffic, the number of deals closed increased.
According to an OrangeTee & Tie spokesperson, there were no big project launches above 200 units in March, and existing projects continued to reduce their unsold inventory as buyers returned to the market. The US interest rate rises, on the other hand, may raise mortgage rates and encourage more purchasers to re-enter the market. Some on-the-fence purchasers are likely to lock in house loans before interest rates rise too much since a sharp increase in the cost of borrowing might push some upgraders out of the sector.
For many Filipinos, finding their own home has always topped their priorities in life. Many seek for safe havens where they can live comfortably without breaking the bank. These days, however, a comfortable life costs too much that not every hardworking Filipino can afford. This is why Camella has built quality and secure communities all over the country to provide a decent life for hardworking individuals and their families.
The deep sense of a Filipino neighborhood culture sums up the down-to-earth nature of Camella communities. Borne out of its vision of building every Filipino’s dream wherever they choose to live, Camella has constructed over 500,000 homes in key cities and provinces nationwide for 45 years. This vision has resulted in ideal homes finely built and designed, self-contained and secure properties, and a network of systems, facilities and organizations that make for a stronger foundation of every home.
Camella offers a wide range of payment options that allow homebuyers to purchase their dream homes. Customized financing schemes also help them realize their first home investment in a safe and beautiful community.
Camella provides convenient locations where families can have access to schools, medical centers, places of worship, marketplaces, shopping malls, transportation hubs, and places of work. There are Camella communities with schools, churches and commercial centers right within the property —allowing them to be nearly self-contained.
Camella features amenities for families to spend quality time together : swimming pools, basketball courts, playgrounds, landscaped parks, and tree-lined avenues that often revolve around a Clubhouse. To make it a safer place to live in, the communities are well-secured with guarded gates, roving guards and perimeter walls.
Landscaped communities
Camella boasts of green surroundings by collaborating with a team of horticulturists — to create living communities that grow into habitats ideal for families. The group designs the landscaping and open spaces that allow residents to come home to an oasis of lush greenery.
Good business practice
Camella has tied up with top companies that help guarantee its communities are well taken care of. To ensure the group’s competence in project management and safety-conscience building practices, Camella works hand-in-hand with MGS Corporation, which provides construction expertise to customers throughout the country.
Camella likewise works with Global Land Property Management, Inc., a group with extensive experience in managing subdivisions and condominiums. They ensure that necessary preventive and corrective maintenance programs are implemented.
Quality systems and processes
Camella has instituted a number of systems designed to streamline operations and communications within the company and for its residents. Camella uses the German-devised software SAP (Systems, Applications and Products), which serves as an end-to-end application system addressing the ERP (Enterprise Resource Planning) system requirements of key departments including Sales, Administrative, Production, Customer Care, Technical Services, Purchasing, Accounting, and Finance.
“Buy them pre-built or customize the floorplan?” That question is one of the most compelling aspects of a new home purchase for many people in Canada. It’s a choice that comes with complications including cost and terms associated with building your own home.
To determine which option is most advantageous for most, this guide delves into various facets of pre-constructed home purchases processes and their influence on buyers in Canada, most especially Ontario.
Taking Advantage of the Pre-Construction Process
One distinct feature of pre-constructed homes is the opportunity for buyers to deposit smalldown paymentsin early project phases and watch them appreciate over time. Individuals who purchased such buildings back then have seen these structures risen in value.
Intending buyers are encouraged to invest futuristically by purchasing newly pre-constructed homes that will appreciate some years from now, provided that the Canadian real estate market continues to expand.
Most of these residential homes are developed in the Canadian suburbs where competition is low. Is this a significant factor? Of course. These homes are more likely to be situated on larger lots and have increased living space, compared to earlier residential structures. But there is more.
Buyers don’t have to compete aggressively in bidding wars as seen in urban housing markets in locations like Montreal, Greater Toronto Area, Greater Vancouver Area, and Calgary. But before venturing on a hunt for pre-construction homes, take some precautionary measures to prevent unforeseen issues.
Understand Legal Requirements and Purchase Agreements
As with other building types, pre-construction homes come with legally binding agreements, which both parties must honour. On the surface, these agreements appear harmless and mouth-watering. However, upon closer study, some unfavourable provisions may be lurking in the fine print.
Signing such contracts on the spur of the moment without reading the fine print may lock the buyer in a never-ending cycle of disparaging commitments, most of which would be financial. In Ontario, buyers can wait within a stipulated timeframe to ascertain their decision to sign the contract.
This duration is commonly referred to as the “cooling-off” period, which is a legal obligation. The province also mandates warranty coverage on pre-construction homes, which buyers can leverage to ensure that they are not receiving a terrible bargain.
A buyer would also need to sign a purchase agreement with the builder. This legal document is a prerequisite to claiming full ownership of the pre-construction home and it comes with the Tarion Addendum, which comprises:
The Addendum — Documentation showing the critical dates
The Purchase Agreement — Purchase and sale agreement forms
Before signing the agreement, the buyer should seek legal advice from a lawyer to ensure that the transaction is fair and that the buyer is protected legally against potential difficulties.
Know More About the Pre-Construction Builder
Finding out more about a home builder is one method to guarantee that a pre-construction property does not come with any unlawful baggage. One way to do that is to use the Ontario Builder Directory (OBD).
OBD is an online database that provides detailed information about home builders in Ontario, including probable convictions for unlawful construction projects. Potential buyers can use this resource to figure which builder to consult.
Reputable builders in Ontario are licensed to construct new residential structures. They also have a track record of previous homes they’ve built, as well as genuine testimonials to back up their work.
Explore the Warranty Coverage
As previously noted, Ontario legislation provides for warranties on new houses. This coverage is available in a variety of warranties (one, two, and seven years) and caters to:
Materials
Workmanship
Defects
Ontario Building Code violations
Water penetration, and many more
Keep an eye on hidden costs
Charges may appear out of nowhere, leaving the homeowner perplexed. Purchasers may be unaware of them until a few days before closing. In certain circumstances, the fees might be as much as 6% of the initial purchase price.
To be cautious, purchasers should enquire about additional fees and create a budget to avoid unexpected expenditures such as development fees, utility installation fees, and the rest. The maximum charge should ideally be 2% of the purchase price.
Anticipate Pre-Delivery Inspection (PDI)
During the construction process, the builder will invite the buyer over to inspect the home. This is to ensure that the building meets the client’s requirements and satisfaction.In case of an unusually large project, or as a part of the pre-delivery inspection and acceptance, some aspects of the building may be examined.
The builder may furnish the buyer with detailed data in respect of the plumbers, electricians, plasterers, tiler, drainage consultant, roofing company, and other professionals, as part of the pre-delivery inspection and acceptance process. As a tip, buyers can review the PDI checklist available online to know what to examine when on a PDI.
A month before the warranty expiration highlighted in the Addendum, the buyer can conduct a second inspection. Why is this necessary? It is advisable to give the pre-construction building time to settle over the course of varying seasons.
As a result, the customer will be able to assess the structure’s performance under various situations. During this time, possible flaws in the construction may begin to show up. After the second inspection, the buyer can decide whether or not to proceed with the deal.
If Unsatisfied, Get a Real Estate Broker
Working with a real estate broker or agent, particularly one who is familiar with pre-construction properties, expedites the transaction process and guarantees a decent bargain. In most cases, house buyers are only shown model homes to get a sense of what the finished construction will look like.
Real estate brokers, on the other hand, are familiar with the ins and outs of pre-construction developments as a result of their relationships with developers and builders. What exactly does this imply? Builders and developers frequently hire real estate agents to represent them. They are, in other words, the sellers’ agents.
As a result, these professionals work in the best interests of their clients, not the buyer. They guarantee that the builders receive the best deal possible by offering pre-constructed homes at premium prices. It is then in the best interests of house purchasers to choose real estate agents who will represent their interests.
In Conclusion
Most Canadians spend a lot of money on a new house and then find out that’s not the one for them. Before buying a pre-construction house have an experienced broker or agent with a large network to strike a good bargain. A lawyer will come in handy as well. Finding the ideal agent and lawyer may necessitate an extensive search, but the outcomes are rewarding.
Real estate consists of lands and any buildings it has, along with all its natural resources which include crops, water, or minerals. More generally, real estate deals with housing or building in general. Such include flatshare in Singapore. As an investment, real estate is one of the surest ways one can use to attract wealth. It is due to the rising prices of land and demand for more and more of it.
It is also a way of storing value, especially by wealthy foreigners, without any particular attempt to rent it out. One can spot an excellent opportunity to enter the real estate business when they have adequate land in places where housing is a significant problem. The following are some of the tips one can use to choose a real estate company.
The experience the company has
By being in the real estate industry for a long time, a company gets the required experience to handle different branches of real estate. Experience also helps a company follow the steps necessary to unlock the value of a building, be it commercial or residential. For instance, repairing a space is one of the surest ways to make a building increase in value.
One can also get the best guidance on the best steps to follow when investing in real estate. On the other hand, one is cautioned against getting a newbie company because of their little experience since they have been in the industry for a short period.
Reputation
It is essential to find out how different people say about a real estate company. Reputation helps one to make quick decisions on whether to invest in a project or not. Information on reputation can be fetched from previous clients or reviews from social media platforms.
To keep clients and still attract new ones, an excellent real estate company offers the best services. One should only work with companies that clients are happy with.
Licensing
Checking whether a real estate company is licensed is essential because it shows that you are working with a legitimate organization. One is also capable of keeping fraudsters who are after your money by asking to see the license.
However, keenness should always be applied since some real estate companies work with counterfeited documents. When one is in doubt, they are supposed to check the listing of all real estate companies and find out whether it appears.
Customer Services
Whether you are looking forward to investing with a real estate company or having other services, you should always find out how the staff handles their clients. Poor handling of clients is one of the red flags that should make a person reject the services of a real estate firm. The staff should be professional and show confidence in their undertaking to win the trust of clients.
Having the required facts when going into the real estate business helps one salvage their money from greedy companies. Therefore, thorough research should always be done before one makes their decisions. In other circumstances, one should have their lawyer with them for guidance.
Monopoly is a board game that has been causing family feuds since 1935. Monopoly was first marketed in 1935 during the Great Depression. It was an instant success and became a best-selling game in United States. Since then, over 275 million game sets were sold worldwide.
What is amazing about Monopoly is its ability to mimic financial scenarios in real life. On that note, here are four valuable real-estate and finance lessons that you can reap from the game.
#1: ALWAYS HAVE CASH ON HAND
In Monopoly, having cash enables you to purchase properties and pay fees for unlucky turns. You may need to shell out some cash to pay an opponent or to pay for a “Chance” card. It is important to always have cash on hand whenever you play. Do not spend all your money in one go!
In a similar way, you must spare some cash for unforeseen situations. The game teachers us about the importance of budgeting and saving money. You need to save enough money to cushion the blow of rough times, such as during this pandemic. Establish your emergency fund by identifying your current financial standing. It is best to build a fund that can cover about six months’ worth of your living expenses.
#2: DIVERSIFICATION IS IMPORTANT
Let us go back to the game itself. If someone lands on your property, you will earn money. Players usually buy multiple spaces or properties around the board to increase their chances of earning money. Chances of earning are slimmer if you only have a few properties on the board. The same can be applied in real life.
You need to diversify your portfolio and scatter it throughout the different possibilities in order for you to maximize your earnings. Instead of putting everything in a single basket, make sure to diversify your portfolio with bonds, stocks, and so on.
#3: PLAY THE LONG GAME
Being patient is essential whenever you play Monopoly. You see, the game continues until there is a last man standing (i.e., the other players have gone bankrupt). Much like the game, you are playing for the long haul. Meeting your financial goals is a journey and not a sprint.
Whether you are saving up for your 2021 vacation or your upcoming retirement, you need to be patient. There will a be a few bumps and celebrations along the way. For instance, you may pay off your student loans first before purchasing a car. Setting up a new business venture will also take time and involve a lot of ups and downs. Ultimately, your hard work will help you achieve your goals.
#4: EXPENSIVE IS NOT ENTIRELY THE BEST
The most expensive assets may not always be the best decisions. Most Monopoly players want to earn the Park Place and the Boardwalk since they have the biggest payouts. However, they are also the most expensive pieces to maintain. Many people lose at Monopoly by using this strategy because they do not pay attention to the overall cost. Instead, they only pay attention to the cash flow.
Image Credits: pixabay.com
Those who win at Monopoly are the ones who focus on the value gained for the price paid. You will not win by merely owning the most expensive assets. You will win by making the most money. In investing your money in the real world, you will win by selling high and buying low. Zeroing your attention to the most expensive assets may set yourself up for losses.
