Home BASE-ics #5: HDB Upgraders, Are You Ready For Condo-Living?
It’s true that upgrading our homes can provide a boost to our current lifestyle, however, is it as simple as a change of address?
As one of Singapore’s famous 5 Cs, condo-living has been one of the main benchmarks that portray a ‘successful’ person. Although times have changed and we have embraced newer and more holistic benchmarks for success, the dream of living in a condo with fully attached facilities remains.
There’s no doubt that living in a condo has its perks:
Perks of living in a condo
1. Increased security
Living in a gated community can provide parents with young children great peace of mind due to the enhanced safety. Instead of needing to keep them in sight, they can now play freely with their friends within the common areas.
2. More privacy
One of the common problems of HDB flats is a lack of privacy. Due to how their units are designed, neighbors can often see into each other’s homes. While that may seem like a fun way to chat with each other to some, more homeowners find it invasive (especially new neighbors).
3. Facilities
The main appeal of condo-living outside of its exclusivity is its facilities. Having free access to private pools, BBQ pits, tennis courts, etc, without needing to compete with the public crowd is a privilege for residents of the development. Some even have rarer facilities like saunas or karaoke rooms!
4. (Some) Increased space
Most condo sizes are comparable to HDB flats, however, due to developers having free reign on the design of the units, there may be less wasted space due to a more efficient layout. Additionally, for homeowners who do not mind an older condo (10+ years), there are definitely still units with ample space available.
However, a higher quality lifestyle also comes at a price…not limited to just the price of the house! Upgraders who move to a condo will also experience a rise in living costs, and thus their monthly expenses.
Costs of condo living
Higher Mortgage Payments
Condo units are definitely more expensive than HDB flats, this means that your mortgage for a condo will definitely be higher. Dividing it over your loan term, you will definitely be paying higher monthly installments for your new home.
Higher Utility Fees
In this report by the Energy Market Authority (EMA) of Singapore, it is shown that the average utility bill of private apartments and condominiums is slightly higher than the largest 5-room HDB flat.
Maintenance Fees
On top of utilities, condo homeowners will also need to pay monthly maintenance fees for the upkeep of both the facilities and the development grounds. The full fee will include the service charge, maintenance fund and sinking fund.
Travel Expenses
We conducted a survey on properties that were within walking and bussing distance to MRT stations and of the 122 current stations (as of 2021), only 24 stations were within 1 km of private condos. This means that it is more likely for condo homeowners to live in places with less connectivity, increasing the need for either a family car or longer transport routes and transfers.
Curious about all the post-purchase costs that you may incur after moving into your new home? Check them out here!
Preparing yourself (and your finances) for condo life
Although living in a condo is a dream of many Singaporeans, it is not a lifestyle for the unprepared. Luxury comes hand-in-hand with increased expenses, and it is important to ensure that you are able to comfortably maintain such a lifestyle in order to truly enjoy it. Otherwise, worries over finances and tightened belts will certainly ruin the experience.
At Home Base, we consider the ‘after’ just as deeply as during the purchasing process. This is why we stress the importance of…
- Understanding your finances, affordability and risk
- Determining your budget and reserve funds
- Prioritizing your key needs and requirements over desires
- Improving your overall lifestyle instead of over-indulging in unnecessary expenditures
- Providing you with the conveniences you require to upgrade your life without hurting your daily expenses
Improving your lifestyle does not necessarily include upgrading to a condo. Instead, there are a variety of other property options that you can choose from based on your upgrading needs.
Consult us here and discover your property options today!