What are the quantitative metrics for second hand condo selection?

Question

hi, i want to buy a second hand condo. as a buyer, what are the quantitative metrics i should consider in selection?

Accepted Answer

When buying a second-hand condo in Singapore, here are some key quantitative metrics to consider:

Price and Value

Use tools like EdgeProp's Fair Value tool to calculate the fair value of the property based on historical transactions and market trends. This helps you determine if the asking price is reasonable.
Compare the price of the condo with recent transactions of similar units in the same development or nearby areas to ensure you are getting a fair deal.

Consider the floor area of the unit and how it is laid out. Larger units or those with more efficient layouts may offer better value.
Check the number of bedrooms, bathrooms, and any additional features like balconies or utility rooms.

The age of the condo can impact its price and maintenance costs. Older condos might require more maintenance but could also offer larger spaces.
Assess the condition of the property, including any renovations or upgrades that have been made.

Calculate your Total Debt Servicing Ratio (TDSR) to determine how much you can borrow. This ratio is capped at 55% of your gross monthly income.
Consider the Mortgage Servicing Ratio (MSR) if you are purchasing an HDB flat or Executive Condominium, which is capped at 30% of your gross monthly income.
Check the Loan-to-Value (LTV) ratio, which is typically capped at 75% for private properties, meaning you need to pay at least 25% of the purchase price in cash and/or CPF.

Evaluate the availability and quality of amenities such as swimming pools, gyms, and security services. These can add value to the property.
Consider the proximity to essential amenities like schools, MRT stations, shopping centers, and healthcare facilities.

The direction the unit faces can significantly impact comfort and natural light. Units facing southeast are often preferred for their balanced sunlight and reduced afternoon glare.
Double-facing units can provide better ventilation and more natural light.

Use EdgeProp's market trends tracker to assess the resale potential of the condo. This includes looking at historical sales data, sales volume, and comparing how similar properties are selling.

Factor in additional costs such as Buyers Stamp Duty (BSD), which is calculated on the purchase price or market value of the property, whichever is higher.
Consider other fees like legal fees, agent fees, and any potential renovation costs.

By carefully evaluating these metrics, you can make a more informed decision when selecting a second-hand condo in Singapore.

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