Property Prices and Renovation
Since the year 2009, property investment experts have commented that properties in regions such as Bishan, Paya Lebar and Serangoon are expected to be in high demand. Even old properties in that area which need major renovation works will be highly coveted.
Although property prices are escalating, some new developments are presenting new products to keep prices reasonable. A recent popular trend offers smaller unit options such as the studio, one-bed room and study, two-bedroom or two-bedroom and study. The good news with these smaller properties is that it is a lot easier to renovate and design. Because space is minimal, cost for renovation will most likely be minimal too.
For both cases – whether you are buying old property or new smaller properties – there are various considerations. Consider the cost of maintenance and renovating before you decide to sign on the dotted line. Calculate the cost of the two factors against your profits from renting the property out, and then you find out whether is it worth your while. Do note that older properties may have higher maintenance cost as compared to new establishments as they may need major renovation works that might take a month or so to complete.
Also, before you throw in money on a property, whether and old larger one or a new smaller one; whether you are investing to rent out or for your own accommodation; you have to consider from a tenant’s point of view the convenience and attractiveness of living there. Some indicators are the availability of public transport, clinics and food centres within the area. This can help you decide whether this property is worth your while.
Any property bought entails renovation. So look at the space, look at its conditions and see how well you can renovate it to suit your needs.