CPF savings to acquire houses can’t be used by buyers having below 30 years left on the lease.
Prospect buyers are recommended to consider possible disadvantages of acquiring old residential property.
- Financial issues
To those properties which have lesser left on the leases, buyers might need to pull out bigger amount from own wallet because banks might approve lesser values to loans of a reduce mortgage quantum. Central Provident Fund (CPF) can’t be used when purchasing private homes or HDB flats which have a tenure of below 30 years.
To enjoy the privilege, the age of the buyer and the remaining lease must be proportionate to 80 years the least. Also, the highest amount that can be enjoyed from Ordinary Account coverage is based on remaining tenure of the property and the buyer’s age.
2. Repairs and cracks
Over time, houses depreciate, floors, walls will have its cracks and the most dangerous scenario is when the support beams and foundation are decaying.
Knowing that repair on vital structures is really costly, it can reach as high as ten thousand dollars or higher, thus it is a smart decision to evaluate for those damages found before closing a deal to purchase the property.
It is wise to consult a competent engineer. Despite identyfying the condition, still you want to buy the property, then try to settle for a more reduced price to deduct the cost of repairs and other improvements.
3. Features are outdated
Properties that develop years back might come with outdated electrical wirings, rotten plumbing, which will trigger fires and enhances water leaks. Thus, it’s advisable to examine the issue and have a quote on the amount needed to upgrade those significant features and ensure it complies with the existing policies.
4. Pest issues
Old houses are mostly the favorites of rats and termites to visit or live. Rats are absolutely dangerous to everybody’s health specifically its urine which infects human kidneys while termites also slowly destroy wood furnishings and furnitures of the unit. It is a must to evaluate the tell -tale- signs of termites and all pests. When the infestation is no longer manageable, hire an exterminator asap.
A safe and updated property that guarantees a beautiful and comfortable future is the Rivercove Residences. It is the latest executive condominium units that can easily be found around the areas of District 11. This is strategically located, at Anchorvale Lane Sengkang of Singapore.
It is under the development of the famous and credible Hoi hup. What so amazing about it, is it can easily access many ginat shopping centers like the Hougang Mall, Rivervale Palza and Seletar Mall. This property is made of state -of -the -art facilities. It is also in proximity to the prestigious institutions such as Pei Hwa Secondary School, Anchor Green Primary School , Nan Chiau Primary School and Monfort Secondary School.
It is also close to Major MRT stations such as Tongkang LRT, Kupang LRT, Cheng Lim LRT, and Buangkok LRT.
It has a 99 -year leasehold and 2020 is the expected TOP. It has a great chance for ROI and exceptional capital appreciation.