Some Hidden Costs of Owning a Condo in Singapore – Part 2 – 4 Tips to note
Purchasing a condominium is a big thing. Among many considerations, Parc Central Residences will continue to share with you some Hidden Costs of Owning a Condo in Singapore.
Tip 1 – Ongoing Maintenance Costs
Let us get one thing clear. Your condo unit is part of a more extensive network of condo units. There are a lot of common areas, and I am talking about hallways, elevators, the lobby, parking area. There are just so many to list. These are called common areas, and somebody has to pay for them and their maintenance.
This is why the homeowners’ association that you automatically join when you buy a condo unit in Singapore charges a fee. These can be a yearly fee as part of your homeowner’s dues, or it can be broken down into monthly maintenance costs. If you were to break it down among all districts every month, this is roughly around SG$300.
Tip 2 – Property Insurance
Make no mistake, if you are going to be financing your condo unit as part of the loan agreement, you have to take out property insurance. This can set you back as much as SG$125 or more. Again, it depends on the total value of your unit as well as the location of your unit.
Also, keep in mind that this is a baseline figure because the more comprehensive your property insurance is, the higher is your premium. That makes a lot of sense because you are buying more coverage, so you are going to have to pay for that extra protection.
Just what kind of extra coverage should you pay attention to? In addition to fire insurance and the standard protection offered by homeowner policies, you might also want to consider protection against any kind of harm you do outside your property. Believe it or not, a lot of property insurance providers have provisions for this type of contingency. Ask about this additional protection and see if you can afford the extra coverage.
Tip 3 – Monthly Transportation Costs
Let us get one thing clear. Singapore is a very progressive city. They know that they do not have much real estate to work with. This is why the city government has been actively encouraging Singapore citizens to use public transport.
Please understand that they have gone way beyond mere encouragement. They are penalizing people for owning a car. If you own a car, you are going to be paying thousands upon thousands of Singapore dollars just for the privilege of owning that car. Also, even if you have the money, there are only so many licenses to go around, so you are probably going to have to line up just for the privilege of paying extra to drive a car around Singapore.
This is why it is a good idea to use public transport. Even here, the cost of transportation can be quite expensive, depending on where you work. The farther away your residence is from your place of work, the more you should expect to pay for mass transport. The great thing about Singapore is that it is so efficiently laid out that compared to other major cities, let us say New York City or San Francisco, your transport costs are quite competitive, if not lower.
Tip 4 – Utilities
Never overlook the price of utilities. Please understand that if you have a flat, you are going to be paying less for utilities. Condominium units typically are charged a lot more for electricity. Maybe a lot of this has to do with infrastructure because a lot of these electric utility companies have a lot of sunk costs when they are serving a new condo unit. That cost has to be divided among all the condo unit owners over an extended period. Not surprisingly, utility costs for the typical condo tower in Singapore is around 43% higher than other forms of residencies.
Stay tuned for Parc Central Residences. Interested buyers can now look at the CPF Housing Grants for EC /EC Eligibilities and book appointment to view the Parc Central Residences Price which will be announced in H2 2020. Meanwhile, you can check out more information at CPF website if you plan to use CPF for down payment or installment.