In an ideal world, you would be able to quickly and easily locate a property in Singapore to purchase. There are, after all, many options available for you to choose from. However, there are also many buyers who are interested in finding a property to purchase, and there are only a limited number of properties available that actually meet your unique needs for space, features and price. In some cases, a buyer may be faced with the opportunity to purchase a property that is in need of repairs. There are positive and negative impacts associated with this that you may want to consider as you select the best Singapore properties to purchase.
The Cost of the Property
When you are thinking about buying a property that needs repairs in Singapore, you should consider if there is a financial benefit associated with doing so. If the property is priced at a level that is in line with properties that are in better condition, you may want to choose those properties instead of the one in need of attention. You should also monitor property news related to the location to determine if there is upside potential that you may benefit from in the future. For example, if a new shopping mall is going to be built close to the property, this may be a positive or negative factor related to the value as well as how desirable you find the property.
The Cost of the Repairs
The cost of the repair work needed should also be considered. Ideally, you will be able to get a property inspection to firm up the type of the repair work needed and the scope of the project that you will be faced with after you purchase the property. Then, you should take time to gather quotes from contractors to complete the repair work. You may have plans to do the work on your own to save money, but you should negotiate with the seller to ensure that the cost and the total cost of the repair work will bring the property value in line with market value.
Your Time Availability
Whether you are thinking about making the repairs yourself or using a contractor for assistance, you will need to plan to invest some of your time to the project. After all, you may still need to be on the property while the contract workers are there, and you must have time available to communicate, oversee and review the efforts. Your time does have value, and this typically means that the sales price plus repair costs plus the value of your time should all equate to the current market value of the property once it is repaired.
Other Options Available
You may also consider making a market comparison to review other options available. You need to know how much other properties in better condition are selling for. In some cases, you may find that there is a better overall value associated with purchasing a property that does not need repairs versus a property that does need work. You will not be aware of the benefits that other properties have unless you compare all options available to you.
There are instances when buying a property in Singapore that needs repair work completed is a true deal that you do not want to pass up on. However, there are also instances when a property that needs repairs is priced too high or needs too much repair work to make this type of project worthwhile. Make sure to review all of the pros and cons associated with a repair property before you make your final decision about how to proceed.