When you venture into Singapore’s property market, terms like leasehold and freehold can leave you puzzled – especially since these tenure types can have a significant impact on your investment strategies and long-term property journey. With a mix of leasehold and freehold tenures for all private property types in the market, potential homebuyers are presented with a set of benefits and challenges that require distinct strategies.  

In this article, we are going to break down all of the differences between a leasehold and a freehold property in Singapore. We will go over the key differences between each tenure and highlight factors like ownership duration, value appreciation, resale potential, market demand for leasehold and freehold properties, and the financing options for each tenure type.

Understanding Tenure Types

All residential properties in Singapore are available in two different tenure types: Leasehold and Freehold. Let’s go over the defining characteristics of both.

Leasehold Properties

A leasehold property is characterised by ownership that lasts for a predetermined period. In Singapore, the majority of leasehold properties have a tenure of 99 years. Buyers of leasehold properties possess the right to occupy and use the property for the duration of the lease, however, they do not own the land on which the property is built. As such, the ownership of a leasehold property reverts to the landowner, which is the Singapore Land Authority (SLA), after the lease expires unless it is extended with extra costs.Moreover, owners of leasehold properties are permitted to sell or transfer their lease but must ensure that they comply with the terms and conditions outlined in their lease agreement. They are also responsible for the upkeep and maintenance of the property and have to adhere to Singapore’s regulations around leasehold properties.   

Freehold Properties

Freehold properties are characterised by indefinite ownership of both the property and the land it occupies. Owners of freehold properties have perpetual rights with no time limitations on their ownership status. This tenure type may offer owners greater security and a higher potential for long-term investments. 

Owners of a freehold property in Singapore have full rights to sell, lease or modify their property without many of the constraints that may be found in leasehold properties. These could include subletting restrictions, loan restrictions, transfer conditions, and constraints caused by the remaining lease duration for leasehold property owners. It is essential to note that freehold property owners are still required to comply with the necessary regulations and are responsible for the maintenance and upkeep of their property in compliance with Singapore laws and regulations. 

Key Differences Between Leasehold and Freehold Properties in Singapore

Both leasehold and freehold properties have distinct differences that impact ownership experience, market dynamics and long-term investment plans. Whether you intend to own a property you can pass down through generations or want to purchase property you can put on the resale market after a decade, it is essential to understand the varying factors that will affect your property journey.

Ownership Duration

The first key factor that differentiates both tenure types is the ownership duration of each. 

For leasehold properties, the ownership period in Singapore is typically limited to 99 years. Once this lease expires, the property’s ownership status reverts to the landowner – the Singapore Land Authority (SLA). Additionally, it is essential for property owners to note that when they purchase a leasehold property, the lease reflects the remaining duration at the time of purchase rather than the full 99-year time period. For instance, if a leasehold property originally has a 99-year tenure but has been occupied for 20 years, the new buyer will only have 79 years left on the lease after purchase. 

The ownership duration for freehold properties is indefinite, allowing property owners to retain their property with no time limit on a lease. In a city like Singapore, with significant space constraints, the permanence that comes with owning a freehold property provides property owners with a higher sense of stability and security in the long run.

Value Appreciation

As the lease term decreases, potential buyers may view the property as less desirable. This can lead to a reduced demand for the property and slower price increases. Moreover, the perception of leasehold properties can vary throughout their lease duration. Older properties that are deep into their 99-year lease term may also experience a slower appreciation or even depreciation of value due to the Bala’s Curve Effect, especially in a competitive market with newer developments.

Freehold properties, on the other hand, may experience a more consistent rate of appreciation over time due to their appeal to buyers and investors. The permanent nature of freehold properties may make these properties a safer and more attractive option for long-term investments. 

In some cases, leasehold properties can appreciate more rapidly than their freehold counterparts. Factors such as new condominium developments or properties in prime locations can drive appreciation in the area. Leasehold properties situated in central or desirable areas with modern amenities may experience significant appreciation early on, potentially outperforming older freehold properties in the same locale.

Resale and Market Demand

While leasehold and freehold properties can do well in the property market for different reasons, leasehold properties can face challenges in the resale market particularly when the balance lease reduces. Properties with less than 60 to 70 years remaining on the lease may deter potential buyers due to concerns about lease decay. Aside from the remaining time of a lease, leasehold properties can do well because of other factors like affordability, rental demand, and location. 

Leasehold properties that are in specific locations popular amongst students or expats might do well in the rental market. Properties located next to schools and a wide range of amenities may be an attractive option for families with children. Additionally, leasehold properties are typically priced lower compared to their freehold counterparts, making them a good option for homebuyers.

Freehold properties may command higher prices in the resale market as they don’t experience lease decay. Buyers may perceive them as more desirable as a result, and may still find freehold properties to be an appealing choice in the long run even during economic fluctuations and challenging market conditions. However, a factor that can impact the market demand for freehold properties is the location and age of these developments. For older freehold properties, maintenance of facilities becomes a concern that may influence buying decisions. Freehold properties, just like their leasehold counterparts, may see higher demand and better performance in prime areas – especially if they are newer properties. 

Financing

Financing for leasehold properties can be more restrictive in comparison to financing freehold properties. This is especially the case for properties with shorter balance leases. In this scenario, lenders may impose stricter conditions or higher interest rates resulting from the perceived risks associated with a shorter lease. Banks are also a lot more hesitant with offering the Loan-to-Value (LTV) ratio of 75% for leasehold properties with less time remaining on the lease as they consider the depreciating value of these properties. Additionally, buyers are not able to utilise their CPF to fund their property purchase if the remaining lease is less than 30 years. 

On the other hand, there are no further restrictions on the LTV ratio or CPF usage for freehold properties since there is no lease period.

Which is a Better Option for You?

When considering whether a leasehold or freehold property in Singapore is the better choice, several factors must be taken into consideration. 

For buyers that are seeking long-term investment properties with a perpetual runway for appreciation, or legacy planning, freehold properties may be the more advantageous choice. 

Homebuyers and investors looking to enjoy the flexibility and appreciate market volatility can consider leasehold properties, given that they may not hold the property for more than a few years.

The better option between a leasehold and a freehold property depends on your individual circumstances and your long-term financial goals as both tenure types offer several benefits and challenges that must be taken into consideration when purchasing a property. 

Closing Thoughts

Both leasehold and freehold properties have distinct characteristics, benefits and challenges that set them apart from one another in Singapore’s property market. Ultimately, the better option for buyers hinges on individual preferences, needs, and financial goals. Having an understanding of the nuances of each tenure type and of their own needs can empower buyers to choose an option that best fits their unique circumstances.

Get In Touch With Us

Are you currently in the market for a property? Are you deciding between purchasing a leasehold or a freehold property? Feel free to reach out to our team of experienced real estate consultants for any questions or concerns you have on your property journey – whether you are looking to buy, sell, or rent, we are more than happy to assist you. 

Until the next one, see you!

The post Leasehold or Freehold? Decoding the Differences Between Tenure Types appeared first on Insights by PropertyLimBrothers.

As a homeowner or property owner in Singapore, staying informed about property taxes and the different stamp duties incurred with purchasing any property is crucial for making informed decisions and managing your financial responsibilities. 

Navigating the intricacies of taxation can be daunting regardless of whether you are a first-time buyer or an experienced property investor. However, with the right insights and information, you can be equipped with the right tools to confidently move through the stages of purchasing property in Singapore. 

In this article, we provide you with a guide to the different taxes and duties that come with property purchases in Singapore and the distinctions between owner-occupied and non-owner-occupied property taxes. We also go over the exemptions, deadlines and procedures for calculating the tax rates and paying them.   

Types of Property Taxes & Duties in Singapore

There are several types of property taxes in Singapore that owners and investors must be aware of. This includes the property tax itself, along with a few other duties and types of taxes. 

Property Tax

A property tax is a tax that is imposed on residential homes, commercial buildings, and any vacant land. In short, all immovable properties that are owned in Singapore are taxed annually based on the value of the property.  

Property taxes across all residential properties such as condominiums, apartments, and landed properties, are similar in that they are progressive. This means that taxpayers with a property that is higher in value are obligated to pay a higher property tax. On the other hand, non-residential properties including industrial, commercial and vacant land have a single flat rate.   

Annual property taxes are calculated by taking the Annual Value (AV) of the property and multiplying it with the rates that apply to you. 

The AV is considered to be the estimated gross yearly rent of any building, regardless of whether it is rented out or not. This estimated amount excludes maintenance fees and furniture and is determined by comparing similar properties on the market. For land and development sites that are either under construction or vacant, the AV is considered 5% of the estimated freehold market value. Finally, for specialised properties, the AV is 5% of the freehold capital value or it is determined through processes that utilise costs and receipts to determine the estimated rent and AV of the property. 

Non-residential properties such as different commercial and industrial properties are taxed at 10%  of the Annual Value. Residential properties are taxed at different rates, depending on whether they are owner-occupied or non-owner-occupied. We will discuss this later on in the article.

There are a few types of properties that are exempt from paying property taxes, and these include properties used as a place of worship, properties used for schooling and education, properties used for charitable purposes or those that promote social development in Singapore.

For all other properties that are obligated to pay taxes, there are certain things to take note of. The annual property taxes are due on the 31st of January every year. Any other property tax notices are due 30 days, or one month, from the date of notice. Late payments are charged with a penalty of 5% on unpaid taxes. However, depending on the reasons for the delayed payments, individuals have the right to appeal.  
We went over some of the types of duties in the first part of our real estate terms guide. Let’s get a recap and go over some more of these.

Buyer’s Stamp Duty (BSD)

Buyer’s Stamp Duty (BSD) is a type of tax imposed on all residential, commercial and industrial property purchases in Singapore. This tax only applies to buyers, both Singaporeans and foreigners.  Buyers of a property must pay the BSD within 2 weeks, or 14 days, of the date of the sale in full. 

BSD rates are based on the purchase price or the market value of a property, depending on whichever is higher. So, let’s say you purchase a house that is valued at $4 million, but purchase it for slightly less at $3.5 million, the BSD rate will be calculated at $4 million as it is the higher amount. 

Here are the BSD rates as of 15 February 2023: 

Additional Buyer’s Stamp Duty (ABSD)

Just like the name suggests, an Additional Buyer’s Stamp Duty (ABSD) is a tax that is imposed on top of the BSD on any additional residential properties an individual purchases. This is aimed at cooling the property market to ensure that more Singaporean citizens can have access to affordable housing and the opportunity to own property. 

ABSD is applicable to buyers who meet certain criteria when purchasing property. This includes foreigners, being an entity rather than an individual and owning multiple properties. 

Here are the current rates for ABSD as of 27 April 2023 in Singapore:

There are specific conditions and exemptions that may apply to certain individuals based on factors such as marriage, inheritance, or property transfers within families. For instance, individuals who have to downgrade from their current private residential property to an HDB resale flat are exempt from paying ABSD. Individuals who are in a contract to sell their current property before signing the Option to Purchase (OTP) for a new property are also exempt from the ABSD.   

Seller’s Stamp Duty (SSD)

Seller’s Stamp Duty is a tax imposed on residential property that is sold within a three-year holding period. SSD is applicable to all residential properties including buildings, units in a development, and land. 

SSD was introduced in Singapore in 2010 with the intention of discouraging citizens from flipping properties for profit and to keep the market stable. Moreover, this duty is applicable even if the property that is being sold was acquired through divorce, inheritance or transfers within the family.  

SSD rates are also based on the property’s current market value or its selling price, whichever is higher. 

Here are the SSD rates as stated by the IRAS:

There are also exemptions that may apply to certain sellers of property. Here is a list of sellers exempt from paying SSD.

Goods and Services Tax (GST)

The Goods and Services Tax (GST) is a tax levied on the supply of all goods and services consumed in Singapore. The sale and lease of all non-residential properties in Singapore are subject to GST, which is currently 7%. Residential properties are exempt from GST. However, if the residential properties are furnished, GST must be charged on all the movable furniture and fittings in the house.  

Any vacant land, building or flat made for the purpose of building a residential space and is approved for that purpose falls under the category of residential property and is exempt from the GST. Any property that does not fall under this definition is considered a non-residential property and will be subjected to the tax. 

Here are some examples of what are considered Residential and Non-residential Properties according to the IRAS:

Land Betterment Charge (LBC)

Put in effect on 1 August 2022, the Land Betterment Charge (LBC) is a type of tax landowners are subject to if they plan to develop or enhance their property in ways that increase its value. Previously, developers had to pay three separate charges: a Development Charge (DC), a Differential Premium (DP), and a Temporary Development Levy (TDL). However, they are now included as one charge under the LBC, which is collected by the Singapore Land Authority (SLA). 

LBC rates are calculated by taking the difference between the post-chargeable and pre-chargeable valuation. Moreover, The LBC rates are determined by the location and type of property and are revised every 6 months in consultation with the Inland Revenue Authority of Singapore (IRAS).   

What is the Difference Between Owner-Occupied & Non-Owner-Occupied Property Taxes?

As their names suggest, owner-occupied properties and non-owner-occupied properties refer to those that are either occupied or not occupied by owners. Non-owner-occupied properties are typically either rented out or vacant. 

Owner-occupied and non-owner-occupied property taxes are different in terms of how they are calculated and applied when determining rates. In Singapore, owner-occupied residential properties are eligible for concessionary property tax rates known as owner-occupier tax rates. These rates are lower than the property taxes that non-owner-occupied properties are subject to and are implemented to encourage home ownership in Singapore. Additionally, these rates only apply to residential properties. 

Owner-occupier Tax rates:

Non-owner-occupied tax rates are higher as property owners are not eligible to apply for concessions for their property. These properties are subject to the standard tax rates for residential properties in Singapore. Commercial and industrial properties (buildings and land), regardless of whether they are owner-occupied or non-owner-occupied, are taxed at 10% of the Annual Value.

Non-owner-occupied Tax Rates:

Closing Thoughts

We hope this article has been an insightful one.

Property taxes in Singapore form an integral part of the real estate landscape. They are designed to promote affordability for all citizens, regulate the market, and discourage property speculation. As the various property taxes and duties play an essential role in maintaining the market’s stability and sustainability, it is necessary for buyers and sellers to have a thorough understanding of each type of duty and its implications. 

Moreover, staying up-to-date with any changes in tax rates and deadlines, and identifying which concessions and exemptions apply to individuals can ensure that the annual process of fulfilling tax obligations can be as smooth and hassle-free as possible for everyone.

If you have any questions or concerns about your property purchases or are looking to work with professionals who can offer you guidance and assistance on every step of your real estate journey, feel free to contact us here. 

In the meantime, stay updated on all things real estate here with PLB Insights. 

See you in the next one!

The post Understanding Property Taxes: How to Navigate the Taxation System in Singapore appeared first on Insights by PropertyLimBrothers.

As we all know, a property purchase is an exciting yet nerve-wracking milestone. This sentiment holds true, especially when you find yourself on the cusp of acquiring a fresh, never-before-occupied unit, whether through the BTO scheme, a new launch project, or other avenues. Welcome to your ultimate guide to choosing your future dream unit.

A Well Researched Buyer Is a Better Informed One

With social media serving as a real life testament to the various experiences of the community, a common piece of advice would be to begin by reaffirming your financial capacity. Following this, it’s recommended to reassess one’s needs and anticipate future ones. 

Reaffirming your financial capacity is crucial to preventing any unnecessary strain on your finances in the long run. By factoring in your budget, down payment, and mortgage obligations, you can gain a more accurate understanding of what is financially feasible for you. This understanding of affordability, in turn, can widen your scope in terms of the type of development and room type. Even if you are not purchasing immediately, setting a savings goal is a prudent step that can put you on a more secure financial path.

The concept of the ideal property varies for each individual based on their unique needs and desires. Everyone has their own vision of a perfect home. Knowing your preferences can help reduce future buyer’s remorse and empower you to prioritise features that matter the most. For example, young couples may consider purchasing a bigger unit according to their family planning and lifestyle.

Navigating Your Unit Selection Appointment

Congratulations! Your application has been balloted with a queue number of *insert number here*, which is within the supply of units on offer. Alternatively, you have found a new launch project that suits your needs. 

Before the first appointment to select your unit, it is important to shortlist your ideal flats. By shortlisting in advance, you save the hassle of trying to make on-the-spot decisions during the appointment and increase your chances of securing a unit that aligns with your preferences and needs. Here are some factors to consider:

1) Sun Direction

When it comes to sun direction, it is commonly thought that the sun always rises in the east and sets in the west. In actuality, the direction differs according to the time of year and the latitude. Typically, between March and September, the sun rises in the north-west direction and sets in the north-east direction. Conversely, from September to March, it rises in the south-west and sets in the south-east.

Apart from the direct sunlight your unit receives based on its orientation, it’s crucial to consider how this impacts your comfort and utility costs. It’s no surprise that many people tend to steer clear of west-facing units since they are exposed to the most intense sunlight each day.

Nevertheless, it’s essential to keep in mind that individual needs and preferences differ greatly. West-facing units might be the choice for those who appreciate uniform lighting throughout the day and are willing to make investments in energy-efficient modifications, such as window films and shading devices.

2) Wind Direction

In addition to sun direction, considering wind patterns is another crucial element when selecting a unit in Singapore. The flow of air within your living space can significantly impact your comfort, energy efficiency, and overall well-being. 

You may remember the term ‘monsoon season’ from your secondary school geography lessons. They greatly affect the rainfall and surface wind and generally take place twice a year.

Based on the charts and the prevailing wind directions in Singapore, the unit that will likely have better ventilation from the wind will be the one oriented towards the northeast during the Northeast Monsoon season (December to early March).

During this period, the Northeast Monsoon brings cool and dry air from the northeast. Units facing northeast or northwest are more likely to receive these refreshing winds, making them comfortable and reducing the need for excessive air conditioning. Therefore, if you prioritise natural ventilation and a cool, fresh breeze in your living space, a unit facing northeast could be an excellent choice during this season.
Conversely, during the Southwest Monsoon season (June to September), when warm and humid air arrives from the southwest, you may want to consider units that are better shaded or equipped with effective cooling mechanisms to maintain indoor comfort.

Do note that the specific wind patterns and their impact can vary based on the building’s design, nearby structures, and the unit’s elevation.

3) Feng Shui

While not everyone adheres to Feng Shui beliefs, for those who do, it can be a significant factor in the selection of a unit. Feng Shui places a strong emphasis on the building’s orientation and its surroundings.

A favourable orientation, according to Feng Shui principles, encourages the gentle flow of positive energy known as “Qi.” Units that face natural elements like reservoirs and lush greenery are believed to channel this positive energy. Conversely, those facing busy roads or cemeteries may attract negative energy, referred to as “Sha Qi.”

To assess a potential unit’s Feng Shui, consultants often employ various systems and methodologies. They consider not only the unit’s orientation but also numerous other factors, including the owner’s BaZi (Chinese astrological birth chart) and Gua numbers. These additional elements help provide a comprehensive evaluation of the unit’s compatibility with the occupants’ energies and well-being.

4) Facing

Aside from the spiritual beliefs associated with Feng Shui, practical considerations also come into play when choosing a unit. This is particularly important if you prioritise a peaceful and unobstructed view.

Firstly, it is advisable to refer to the site plan for the development. This can provide insights into whether certain units will face busy roads or expressways. Units with such orientations might experience higher noise levels, increased air pollution, and potentially less privacy due to the constant flow of traffic.

Moreover, units facing multi-storey carparks, particularly those on the same level as rooftop gardens, can face privacy challenges. The same applies to lower-level units overlooking the pool. While these units offer poolside views, they might do so at the expense of reduced privacy and exposure to elevated noise levels.

In cases where the development’s site plan lacks information on surrounding developments, it’s beneficial to refer to the URA master plan. With the master plan, it is easier to estimate future changes to the neighbourhood landscape, which may in turn affect the views of the unit. 

5) Layout

In general, BTO units tend to have more regular and standardised shapes compared to units in private new launch condominiums. Developers of new launch projects often cater to a more diverse market with varying preferences and budgets, which allows for more unique and irregular unit layouts to cater to different buyer preferences. While your ideal condominium floor plan largely depends on your lifestyle and needs, there are some things to take note of while reading the floor plans.

When it comes to selecting your ideal layout, remember that your choice should harmonise with your lifestyle and requirements. While examining the floor plans, pay particular attention to certain considerations, especially if you are contemplating an open concept kitchen or an expanded living space. Be diligent in identifying which walls are potential candidates for removal based on the floor plan.

6) Proximity to Amenities

Recognising that the layout and placement of amenities in every housing development can vary widely, it is wise to consider how the proximity of amenities can affect your daily life and convenience.

Essential facilities like the bin centre and transformer room play a critical role in the development. However, many individuals prefer not to reside in units adjacent to them. Bin centres can generate noise and emit unpleasant odours, particularly during waste disposal times. Additionally, the presence of garbage trucks during collection days can add to the disruption. Such units tend to have lower resale values compared to those in more desirable locations, which might deter potential investors.

In contrast, side gates, although not as prominently used as the main entrance, serve as crucial additional access points for residents, enhancing convenience. If you rely on public transportation, you might favour living near a side gate if it provides direct access to a bus stop, MRT station, or other forms of transit. It simplifies your daily commute and reduces travel time. While the entire development may be relatively close to these amenities, specific units might offer even closer access.

When it comes to amenities like the pool and car park, the decision to be in close proximity depends on your lifestyle preferences. Keep in mind that while being nearer can offer convenience, it may also entail increased noise levels and reduced privacy.

While some residents may prefer the convenience of being close to these amenities, others might prioritise quieter and more secluded units. Personal preferences vary, so it is essential to assess your lifestyle and priorities when selecting a unit. Keep in mind that what’s convenient for one person may not be the same for another, and thoughtful consideration of amenity proximity can contribute to a more comfortable living experience in your chosen unit.

Bonus Tip: Visualise Your Ideal Home

Visualise your ideal home by following these practical steps. Begin by immersing yourself in the experience. Step into a showflat unit or explore the My Nice Home Gallery to gain a firsthand understanding of the layout, offering you a tactile appreciation of the space and design.

Next, harness the capabilities of Google Maps to delve into the project’s surroundings, providing valuable insights into the neighbourhood, including nearby amenities and transportation options. 

To truly grasp the essence of your future home, take it a step further by visiting the project in person. This hands-on experience enables you to assess traffic patterns, appreciate the view, and establish a genuine connection with your prospective residence. 

By visualising your future living space and its surroundings, you will be able to make more informed decisions about your ideal home!

Only Low Level Units are left…

Sometimes, the units left during flat selection may not seem ideal, and you may face a conundrum on whether to select these often low-level flats. For instance, the new implementation of HDB’s tightening rules on flat selections builds pressure to select units. From the upcoming September BTO projects (formerly the August projects) onwards, most who reject the opportunity to choose a flat will have repercussions.  

Prospective applicants should carefully consider their individual housing needs and preferences in this situation. If the available low-level units align with your requirements and are acceptable to you, applying for them can be a viable option, especially if there is an urgent need for housing. However, if you strongly prefer higher-level units or believe that waiting for a more suitable project is more beneficial in the long run, you may choose to wait for the next available project that better meets your criteria.

Final Thoughts

We hope that you have a better understanding on what factors to look out for while considering your future home. In the quest for the perfect unit, it is essential to keep in mind that no unit is entirely flawless or inherently terrible. The key lies in shifting one’s perspective and striking a harmonious balance between personal needs and practical realities. For example, being willing to install energy efficient fixing to cope with a west facing unit. Utilising tools such as URA Master Plan, Google Maps and the development site plan can provide invaluable guidance in creating an ideal living situation.

While some may intend for their BTO/ new launch unit to be their forever home, circumstances can change. Always buy with the potential to sell even if you intend for the property to be your forever home. This forward-thinking approach ensures that your investment remains flexible and adaptable to life’s unforeseen twists and turns. 

Interested to know more about the first appointment? Check out out lessons Nikki learnt during her first BTO appointment. If you are interested in exploring a possible move to a new launch and would like to seek professional guidance, feel free to contact our experienced consultants. Till next time!

The post The Ultimate Guide to Choosing Your BTO/New Launch Unit appeared first on Insights by PropertyLimBrothers.

As the cost of living in Singapore continues to rise, the concept of co-living is gaining more traction among millennials and young professionals opting for affordable housing options. Co-living spaces offer a number of benefits for both foreigners and locals in the search for a place to stay. However, there are also potential challenges that may arise with this living arrangement that you must consider before making your choice. 

In this article, we examine the advantages and disadvantages of co-living spaces. Moreover, we explore a few different co-living locations in Singapore and go over factors that can help you determine whether this is the ideal housing option for you.  

The Rise of Co-living Spaces

There has been a growing trend of singles opting to rent their first home rather than purchase as housing costs have been increasing. With this, another trend has slowly gained popularity–co-living. 

A co-living space is a type of housing arrangement where individuals rent private bedrooms within a development with shared common areas and amenities such as a kitchen, living room and in some cases, bathrooms. 

Factors that have contributed to the rise in popularity of this housing option include the increase in property prices and rental rates, a shift in societal attitudes towards more flexible housing options, as well as changes that have come about post-pandemic. After a long period of circuit breakers and restrictions, people now crave connectivity and to focus on wellness. Additionally, as remote work and hybrid working conditions have become increasingly normalised, young individuals value a space that can offer room for rest and work.    

Let’s go over some of the pros and cons of living in a co-living space.

Advantages

Affordability

The first advantage of a co-living space is affordability. As you are renting a room instead of an entire apartment or condo, rent is typically cheaper. Moreover, the monthly rent amount includes utilities, Wi-Fi, and some maintenance fees, so that is not an extra amount of money you need to keep aside from your rent.  

However take note that rent for different types and sizes of rooms can vary, with some options being priced on the higher side. 

Flexible Rental Contracts

As compared to renting condominiums or apartments where leases have to be a minimum of six months, co-living spaces often offer flexible rental terms. Residents can rent on a monthly basis or for shorter periods of time. Depending on the provider you choose in Singapore, lease terms can be as short as 6 days in some places and 3 months in some. 

This can be beneficial for individuals who do not want to rent for six months or more or are unable to due to their studies, work, or travel.

Convenience

Another advantage of co-living spaces is the convenience they offer that goes beyond just affordability and flexible lease terms. Firstly, co-living spaces are often fully furnished and equipped with the necessary amenities in the bedrooms, kitchen, living room and other communal areas. Additionally, co-living spaces typically come with air conditioning, TV, and high-speed internet. 

This eliminates the need for tenants to purchase furniture, utensils, and kitchen appliances before moving in, making their moving process much more convenient and hassle-free. 

Moreover, co-living spaces typically provide housekeeping and cleaning services that are included in the rent. These services that are provided may include vacuuming, mopping, changing bed sheets, cleaning surfaces, tidying the kitchen, washing toilets and so much more. This ensures that residents have a clean living space that meets professional hygiene standards. 

Additional amenities that residents of co-living spaces may have access to include fitness centres, pools, and gardens.  

Sense of Community

Sharing a co-living space with different individuals allows you to create a sense of community away from home. Living with people from different backgrounds and walks of life can allow residents to network and meet like-minded people who share their interests and hobbies. Oftentimes, co-living facilities also host different events and activities such as yoga classes, cooking classes, movie nights, and talks and presentations for residents to participate in.  

This can be a great opportunity to make new friends and create a sense of belonging, especially for newcomers and expats who want to expand their social circle in a new city. 

Drawbacks

Lack of Privacy

One of the most significant disadvantages of co-living spaces is the lack of privacy tenants have. Aside from a private bedroom, all amenities and living spaces such as the kitchen, bathrooms, and living rooms are shared among all the residents in the development. And in some cases, some co-living spaces offer shower spaces as a shared facility instead of an attached bathroom to the rented room. This can result in a lower sense of privacy and personal space. 

Conflict

Living with people who have different lifestyles, habits, schedules, and hygiene standards can sometimes lead to disagreements and conflict. These differences can bring up issues such as noise disturbances, communication breakdowns, and the use and distribution of any shared resources in communal spaces. Moreover, people with different personalities may have compatibility issues and will need to find a middle ground to keep the peace within the residence.

Safety & Security Concerns

Taking into consideration a few concerns, safety and security can be a potential disadvantage of staying in a co-living space. Individuals often live with people they do not know well and have no prior connection to in co-living spaces even though providers may conduct background checks before accepting new residents. As such, there is still a level of uncertainty and risk that comes with living with strangers and having to share communal areas with them.

Limited Storage Space & Personalisation

Co-living spaces may have limited storage, making it challenging for residents to keep all of their belongings. For residents who have larger items that require additional space, this could be a disadvantage. Moreover, they may have to find other storage solutions like self-storage units. 

One of the benefits of co-living spaces is the fact that they are often pre-furnished. This helps individuals save costs when it comes to purchasing essential pieces. However, it also comes with a downside as this means that residents are unable to personalise their living space according to their own tastes and preferences.

Co-living Spaces in Singapore

Lyf By Ascott Properties

Lyf by Ascott Properties is a co-living space that is catered to digital nomads, travellers, and creatives searching for short-term and budget-friendly housing options. Unlike many other co-living spaces in Singapore, lyf offers rental terms that start at as little as one night. 

Lyf has a wide range of room types ranging from studios to four bedrooms, bunk spaces and six-bedroom duplex spaces. Moreover, this co-living space comes with 24/7 security surveillance, high-speed Wi-Fi, mobile key access and the option of private kitchens and bathrooms. Some locations, such as the lyf One North also come with an infinity pool and a fitness centre. Check out an article we previously shared on lyf Farrer Park. 

Cove

With over 100 locations across Singapore, Cove offers residents a wide range of options to choose from including condos, landed houses, and apartment blocks at different prices. Moreover, these housing options come with weekly housekeeping services, regular maintenance and high-speed internet. Residents also have a range of flexible lease durations to choose from, with the minimum stay period starting at 3 months. 

As Cove is targeted at younger clients, it has a business model that was developed to make the entire process of finding a place to stay and moving in as smooth as possible through the use of technology. Clients can manage all of their needs and concerns on the Cove app, including uploading important documents, accessing monthly invoices, connecting with flatmates and reporting any issues that arise (Wi-Fi connectivity, air conditioning, faulty light bulbs, etc.).      

Hmlet/Habyt

Hmlet, now also known as Habyt, is a unique co-living space located at Outram Park and Tanjong Pagar. This co-living space has rooms of different sizes with the option of a private bathroom or shared bathroom.    

Apart from the rooms and basic amenities such as a communal kitchen, workspaces, and washing machine and dryers, Habyt also offers a wide range of additional facilities that residents can enjoy. These include an outdoor deck and garden, plunge pool, pet-friendly spaces, a wellness studio, a lounge with complimentary coffee and tea, on-site parking and transport services.  

Is this the right choice for you?

The decision to choose co-living spaces for your accommodation ultimately depends on your lifestyle, personal preferences and needs, and your budget. 

Co-living can be ideal for you if you are on a budget, a student, a traveller, or an individual renting a place on your own for the first time. This housing option can be a great way to make the transition towards living on your own, away from home for the first time. It is good for people that want short-term rental accommodation with flexible rental terms. Moreover, it is also suitable for individuals who value communal living, do not mind sharing spaces with others, and enjoy social interaction and expanding their circle.      

However, if you are someone who values privacy and personal space, and aren’t very big on sharing your kitchen and bathroom with roommates, there are other housing options that may be better suited to your needs and preferences. Singapore has a number of different housing options, both public and private, that offer a range of amenities and facilities. 

Closing Thoughts

Co-living spaces have seen a rise in popularity in Singapore as living costs have seen an increase, consumer preferences are changing, and as co-living providers are popularising the concept of shared accommodation. 

Choosing co-living requires individuals to consider the various advantages and disadvantages that come with living in an accommodation where so many aspects of one’s life become shared. It is also essential to evaluate factors such as budget constraints, flexibility needs, safety and security concerns before making a decision that is ideal for you. 

We hope you have gained some essential insights on the pros and cons of co-living spaces in this article. If you are on your real estate journey and have any questions or concerns, feel free to contact us here. 

And as always, see you in the next one!

The post Co-living in Singapore: Pros and Cons of Shared Accommodation appeared first on Insights by PropertyLimBrothers.

As lifestyles evolve and living spaces shrink in Singapore, individuals are turning to self-storage facilities to store their belongings. Self-storage facilities offer a unique combination of space, convenience, security and an opportunity to optimise space for individuals and businesses.  

In this article, we explore this rising rental trend in Singapore and uncover the reason behind the surge in the demand for self-storage facilities by both individuals and businesses. Moreover, we go over the different uses of these facilities and the growth potential of this industry in the commercial real estate market. 

Join us as we delve into the emerging trend of self-storage and its impact on transforming the way Singaporeans address their storage needs in a fast-paced urban lifestyle.   

What are they?

Self-storage facilities are spaces where businesses and individuals can rent storage units on a short-term or long-term basis to store their personal belongings or inventory. These facilities in Singapore are considered a commercial property type because they operate as businesses that offer storage space, along with additional services, to different customers. Some well-known self-storage companies in Singapore include Lock+Store, StorHub, Mandarin, and Work+Store with various locations across the city.    

Self-storage facilities come with various features and offer a range of services that can ensure the safety and maintenance of customers’ items, which we will discuss later in the article. 

Increased Demand for Self-Storage Spaces

Work+Store, a self-storage operator in Singapore, stated that demand for its facilities was up by 20% in the last few years, according to an article by CNA. What further highlights the increase in demand is the growth of self-storage facilities in Singapore, which have gone from under 10 operators five years ago, to more than 30 operators with locations throughout the country.  

The increase in demand for self-storage facilities in Singapore over the last couple of years can be attributed to several different factors. Let’s go over some of these.

Post-Covid Delays

The construction sector was one of the many sectors that was hit by the pandemic. This resulted in supply chain disruptions and manpower shortages, causing delays in the construction of the Housing Development Board’s (HDB) Build-to-Order (BTO) projects.

According to a Straits Times article in 2021, 43,000 households were expected to face delays in the construction of their HDB flats. Similarly, homeowners that were working on home renovation projects also faced delays due to disruptions caused by the pandemic. 

These construction delays and renovation projects led to an increase in the use of self-storage spaces as couples and families waiting for work on their homes to be completed opted to store some of their belongings and furniture in a secure place. 

Space Constraints

Space constraints are a major factor in the demand for self-storage units in Singapore, and started becoming more apparent over the last few years as a result of lockdowns. As working from home slowly became the norm, individuals utilised self-storage units to declutter their homes for more space and created a home office with all the necessary equipment.  Additionally, a large percentage of Singaporeans live in non-landed residential areas, where space is not as in abundance as that offered in landed homes.  

Moreover, due to rising rental prices over the last three years, rather than upsizing, or even downsizing, individuals are looking to store additional belongings in self-storage units to declutter and optimise their living spaces. 

Increase in International Travel

As international borders reopened, more and more people started planning trips overseas. Demand for storage space surged as a result as individuals needed additional space to store any winter clothing and luggage that is not needed throughout the year in Singapore. 

Storage for E-Commerce Businesses

Small business owners with a growing customer base turned to self-storage units to store inventory. They used these spaces as a warehouse to store their products rather than renting a physical shopfront. This has become a much more affordable option for small businesses as the rent for the shopfront can be five times as high as reserving a self-storage unit. Moreover, having a separate place to store inventory can allow business owners to create some work-life boundaries. 

Features and Services

As we can see, self-storage facilities can be used for a variety of reasons, both personal and commercial. The use of self-storage units surged and may continue to stay in demand due to the many features and services they offer to fulfil the needs of different customers in Singapore.  

Variety of Storage Unit Sizes

Storage spaces are not all one size across facilities. There are spaces as small as lockers, as well as spaces that are as large as a bedroom or living room. The storage spaces can range anywhere from 10 sq ft to 200 sq ft, and even larger for businesses. Depending on your needs and the type of items you plan on storing, you can choose the ideal storage space size for your belongings. 

Security Systems & 24/7 Accessibility

One of the most basic, yet essential, features that most self-storage facilities offer is 24/7 security with CCTV surveillance and security checks by staff during business hours. Take note that different companies and operators may have different security protocols such as pin code access, digital locks, and facial recognition. 

Another feature self-storage facilities offer customers is accessibility to storage units and their belongings at all times, including weekends and nights.

Additional Features and Services

In addition to the general features offered in self-storage facilities, there are extra services you may find, depending on which company you decide to rent from. 

These extra services can include moving and packing supplies and robots that can transfer your items to storage spaces safely. Some self-storage facilities may also offer a valet or delivery service to pick up and drop off your belongings. Customers can also rent a storage space that is air-conditioned or climate-controlled to ensure that the temperature within the space is optimal for keeping materials such as leather and paper in good condition while in storage. 

Renting A Self-Storage Unit

Before renting a storage unit, it is essential that you identify what you need to store and the type of space you will need for your belongings, along with the amount of time you need to store them for. Once you have done that, you can start looking for self-storage units close to you, factoring in things such as location and pricing. After this, you should be ready to reserve a unit in your chosen location and facility, make payments and store your belongings for as long as you need to.    

Take note that this is a generalised guide that goes over the basics of renting a unit. The details, rates, and conditions of the rental conditions can vary from company to company based on the type of space you choose.

Growth Potential in Commercial Real Estate

In addition to the increased consumer demand for self-storage facilities in Singapore, there are several factors we should take into consideration when looking at the growth potential of this type of property in commercial real estate.  

Attractiveness of Investment

According to a study conducted by Jones Lang Lasalle (JLL), the surge in demand for self-storage facilities since the pandemic has caught the eyes of real estate investors in this sector. 

Certain contributors, such as remote work and a rise in e-commerce businesses, that initially caused the increase in demand not only in Singapore but across the Asia Pacific region is predicted to continue. In fact, data from the study highlights how the e-commerce market is expected to grow over the next five years by 11%, making it a key driver of demand as retailers turn to self-storage facilities for their inventory. 

In addition to the expected growth of the e-commerce market, a large portion of demand in this sector consists of individual consumers that rent self-storage spaces for personal use as we discussed earlier in the article.  

These factors can make the self-storage industry an attractive choice for investment.  

Low Operating Costs & Consistent Demand

Another factor that may contribute to the growth potential of self-storage firms and make this a good choice for investors is the low operating costs of self-storage facilities. Unless you have storage spaces that come with climate controlled facilities, 24/7 security guards, and other technological investments that enhance services, there are not many operating costs aside from basic utilities and rent.

The operational costs of self-storage spaces are relatively lower than those of residential properties and other office, retail or industrial properties. However, with these additional services, there is potential for higher revenues.  

Along with lower operating costs, there is a consistent demand for self-storage units throughout the year and through changing market conditions. This is because of the wide range of customers that operators cater to. From needing extra space to store furniture while renovating a home, to needing a large storage space to keep inventory for a small business, there is demand for self-storage facilities consistently. 

Diversification

Due to the nature of self-storage facilities, each unit or space can be very differentiated. Apart from the varying sizes of each space, operators can offer customers complementary services and unique features that set them apart from competitors. This results in a diversified facility that caters to a wide range of customers, both individuals and businesses.   

Although there are various factors that indicate the growth potential of this sector for commercial real estate investors, there are challenges that investors may have to work through.  

Competition & Market Saturation

With Singapore being a relatively small country and already having several different operators that lead the industry with the innovative services and features they offer across various locations, new companies may have to offer competitive prices, unique features that enhance convenience, or both to set them apart. This means that the competition for new entrants is high.

As the transformation of the self-storage industry over the last few years has caught the attention of global investors with private equity funds, the price of assets has further increased. This can be a factor that may potentially drive out operators that cannot outcompete other players within the industry. 

Along with high competition, there may be a possibility of the self-storage industry in Singapore becoming saturated due to the increase in investments within the sector. With an oversupply of similar facilities throughout Singapore, customers will turn to the leaders of the industry that offer the most competitive services for the lowest price. This could lead to lower occupancy rates as well as decreased profitability for operators that fail to outcompete companies that offer better prices, services and features.    

Rising Price of Real Estate

Although self-storage facilities fall in the category of commercial real estate, they are built on industrial properties. Companies such as Lock+Store lease some of their locations in Singapore, and mentioned in a Business Times article earlier this year that they faced a significant increase in rental rates. Furthermore, self-storage operators are also facing higher financing costs with a rise in interest rates on the purchase of their buildings. 

This could make the price of property for these facilities a hurdle that self-storage operators may have to face. 

Closing Thoughts

The rise of self-storage facilities in Singapore over the last few years highlights the emerging trend that addresses the consistent and growing demand for storage solutions. With space constraints, changes in consumer trends, and delays caused by the pandemic, self-storage facilities offer an affordable and convenient way for customers to store extra belongings.

As commercial real estate developers recognize the potential for growth within this industry, the growth of self-storage facilities is set to continue and meet the evolving needs of individuals and businesses. 

If you want to stay up-to-date with insights on what is trending in the real estate landscape of Singapore, check out more of our articles and content here, and if you have any questions about your real estate journey, feel free to contact us here. 

Until then, see you in the next one!

The post The Rise of Self-Storage Facilities in Singapore: An Emerging Trend in Commercial Real Estate appeared first on Insights by PropertyLimBrothers.

Renting a property in Singapore can be rather complex, given the maze of options and regulations you have to navigate. This makes it essential to stay up-to-date with all the trends as well as the rules surrounding them regardless of whether you are a local looking for a rental property while waiting for your home to be built, or an expat relocating to Singapore. 

In this article, we provide you with a one-stop resource for all you need to know about renting in Singapore. By understanding all the necessary terms, the process, and your rights as a tenant, you will be well-equipped with all the knowledge you need to secure your ideal rental property in no time. 

Understanding the Rental Market in Singapore

Due to the limited supply of residential properties and high demand from Singaporeans and foreigners, the rental market in Singapore is known to be highly competitive. Moreover, according to the Urban Redevelopment Authority (URA) and the Housing Development Board (HDB), there is an increase in rental demand from locals driven by the BTO construction delays, causing rental prices to surge in tandem.

There are various types of residential properties available in Singapore, including private and public housing options. Renters have the option to rent HDB flats, condominiums, apartments, or landed houses. You can read more about the different types of residential properties here. Each of these options has a different price range and conditions for renting.

Rental Jargons

Now that we have an overview of the rental market in Singapore, here are some terms you should take note of before you start the process of renting your new home. 

Letter of Intent (LOI)

A Letter of Intent (LOI) is a document given to the landlord by the tenant, declaring their intent to rent property. This is not a legally binding document, instead, it serves as a preliminary agreement that briefly outlines the terms and conditions of the agreement between the landlord and tenant. 

The LOI includes the names of the parties involved, property address, and agreements made such as the proposed rental amount, security deposit amount, lease terms, and special requests and conditions. Examples of special requests can be to keep a house pet or to have the landlord install wifi for the tenant prior to the signing of the formal agreement.    

Signing the LOI typically indicates that the tenant is no longer looking for other rental properties, and the landlord is no longer going to consider other prospective tenants. However, it is important to note that not all landlords will ask for an LOI. Typically, upon signing the LOI, the tenant must pay the landlord a good faith deposit.

Good Faith Deposit

A good faith deposit, or booking deposit, refers to a downpayment a tenant pays a landlord to secure the rental property for a specific period of time. This is paid to the landlord as soon as the LOI is signed and further indicates your intention to rent the property. 

The amount of the good faith deposit is typically one month’s rent if the tenant signs a one-year lease, and more if the lease is longer. This deposit may also serve as a rent advance or a portion of the security deposit, depending on the terms that both parties agree to.    

Security Deposit

A security deposit is the sum of money paid to the landlord by the tenant as a type of financial protection or compensation for any damage that may be caused to the property, unpaid rent, and breaches of the tenancy agreement. This is paid at the time of signing the tenancy agreement along with the first month’s rent payment.     

The amount of the security deposit to be paid is stated in the LOI and is also usually one month’s rent in a one-year lease, and more if the lease is longer. In some instances, the good faith deposit counts as the security deposit and the tenant can simply pay the remaining balance once the tenancy agreement is signed.

Once the tenancy agreement is terminated and all conditions and obligations on the tenant’s end have been fulfilled, the security deposit is returned to the tenant without any deductions. However, if any damages are made to the property (beyond the normal wear and tear), the landlord is entitled to deduct a portion or the entire security deposit.   

Tenancy Agreement (TA)

A Tenancy Agreement (TA) is a legally binding contract between the tenant and the landlord that sets out the terms and conditions of the lease. This document outlines the terms and conditions that govern the rental of the landlord’s property and also contains the important details that both parties must adhere to throughout the period of the lease. The terms and conditions that are written in the tenancy agreement are the same ones that are agreed upon in the LOI. 

The details stated in the tenancy agreement include the names and contact information of both parties, the address and description of the rental property, the duration of the tenancy, payment terms, the amount of the security deposit required along with its conditions, and the termination clause which comprises the conditions and notice period for terminating the tenancy agreement before its end date. 

Additionally, the contract states the list of responsibilities of both the tenant and the landlord regarding property maintenance, repairs, utilities and services and any house rules and restrictions the tenant must adhere to.    

Rental Process

The rental process in Singapore involves 6 key steps. 

1. Property Search & Viewing

The first step in the rental process involves conducting research on the rental market in Singapore to determine what options you have available based on the different rental rates, locations, property types, and your budget. Then, you can start scheduling appointments to view properties that you have shortlisted in order to decide which place is right for you. 

In this step of the process, you can take note of the size and condition of the property you are viewing, along with the facilities and amenities surrounding the property.     

2. Application, Negotiations & Offer

Once you have decided on which property you are interested in renting, you can submit a rental application to the landlord and provide all the information that may be required for the process. This can include personal information, employment details and any additional information the landlord requests. This step also involves negotiations regarding the rental price, different terms and conditions of the deal, and the offer to rent. 

3. Letter of Intent (LOI)

After the negotiation is done, an LOI is written up and sent to the landlord along with the good faith deposit. 

Take note that in many cases, this step can be skipped. This is dependent on whether the landlord and tenant agree to do so and are willing to sign the tenancy agreement straight away.

4. Paying Rental Stamp Duty

The fourth step in the rental process is the payment of the rental stamp duty. Tenants are required to pay 0.4% of the total rent for the period of the lease.

5. Inspection and Inventory

This step includes conducting a thorough inspection of the property to ensure that there aren’t any damages or defects. Make sure to double check the inventory list to ensure that every provision and piece of furniture is documented properly. In the event that there are any damages or defects, ensure that the landlord is informed to prevent any disputes in the future.

6. Signing the Tenancy Agreement

Finally, you can sign the tenancy agreement after going over it in detail and pay the landlord the remaining rental amount before moving into the property. 

Ensure that you have a copy of the agreement for your records and to refer back to in the face of any conflict or issues should it arise at any point during the tenancy period.

Tenant Rights

Tenants in Singapore are entitled to certain rights and protections that are stated in the tenancy agreement between a landlord and tenant. Here are a few: 

With a lease, a tenant is entitled to their privacy without any unnecessary interference from the landlord throughout the duration of the tenancy agreement. Landlords can typically only enter the property with prior notice to the tenant or in emergency situations.

Furthermore, landlords generally are not permitted to increase the rent throughout the tenancy period unless it is explicitly stated and agreed upon by both parties in the tenancy agreement under a particular provision that allows for it under certain conditions. If the landlord chooses to increase rent, he or she must give the tenant a month’s notice at minimum, before the increase takes effect. 

Landlords are required to provide tenants with a notice, typically a month, in advance if they choose to terminate the tenancy before the agreed-upon end date. This notice should be provided in writing with a specified date. As a tenant, you are also required to do this.

Overall, it is important for you to carefully review the tenancy agreement before signing, as your rights as a tenant are stated within the agreement and will be in effect throughout the tenancy period.  

Consideration

Throughout the entire renting process, there are many important decisions you must make as a tenant that will determine your experience throughout the duration of your tenancy. Some things to take into consideration when searching for the perfect rental property include budgets and rates across the market, location and housing type, and whether or not you plan on self-sourcing or working with a realtor.  

Budget

Before you start looking for rentals, the most important factor you must take into consideration is your budget. When you plan your budget, decide how much you can spend on rent per month based on your monthly income. Make a list of the extra costs that will be incurred throughout the tenancy period. These include utilities, maintenance fees, insurance, and some money set aside for emergencies. Additionally, ensure that initial costs such as security deposits, good faith deposits, and rent advances are included in your budget.

Some other things that can further help you finalise your budget are discussed below. 

Type of Accommodation & Location

Ideally, your new home should be located somewhere with easy access to your workplace or public transportation. You should also consider the proximity to amenities such as malls, healthcare facilities, entertainment hubs, and schools if you have children. In a nutshell, you should look for a location that is aligned with your preferred lifestyle. 

Take note that rental rates are influenced by the location of the rental property, the property/room size, and the property type. Certain locations such as those in the city centre are generally more costly to rent than places outside the city centre.

Self Sourcing vs. Working with a Realtor

Finally, a crucial point to consider in your rental journey is whether you want to self-source or work with a realtor.

As a renter, you can search for properties on your own through property websites or personal connections. Self-sourcing enables you to exercise more control over the entire search process and have lower costs because, with this option, you will not incur any commission fees.

So, if you have a smaller budget, this option could be ideal for you. However, you may have to spend more time and effort conducting your own research and communicating with different landlords on your own. 

On the other hand, working with a licensed realtor will enable you to receive professional guidance throughout each step of the rental process. Realtors are able to source for a wider range of options available for you to choose from and will also have the expertise to negotiate terms with your landlord for you. This is a better choice for you if you have a slightly larger budget as commission fees are involved when working with a consultant and can typically equal a month’s rent on a one-year lease.

Take note that realtors are not allowed to represent and collect commission fees from both the landlord and the tenant. If you are not represented by a realtor and your landlord is, you do not have to pay any commission fees.    

Conclusion

Renting in Singapore involves several steps through which you need to make important considerations such as budgeting, choosing the right type of accommodation, finding the ideal location that aligns with your lifestyle, and deciding whether you want to work with a realtor or not. 

Moreover, it is essential for you to familiarise yourself with how a tenancy agreement works and what your rights are as a tenant in order to rent a home where you feel safe and where your needs are met. 

We hope you found some useful tips from this article that can help you throughout the process of renting property. If you are looking for a rental property in Singapore, feel free to contact us here for any assistance or guidance throughout your rental journey.  

As always, see you in the next one!

The post Rental 101: All You Need To Know About Renting in Singapore appeared first on Insights by PropertyLimBrothers.

Besides money, property inheritance is another big asset that could lead to fighting amongst family members – especially if there is no written will in place. A recent article in The Straits Times talks about how many Singaporeans buy properties in trust for their children “to ensure that their children will have a roof over their head and do not have to contend with the increasing prices of properties in future.” In theory, this is very forward-thinking on the part of the parents, but what happens when this backfires in the future?

There is a Chinese saying that loosely translates to “Wealth does not last beyond three generations”, and there is even evidence to suggest that this may be factual. In a study conducted by The Williams Group, a family wealth consultancy, they found that seven in 10 families lose their fortune by the second generation. By the third generation, that number increases to 90% of families. What are some things we can consider before writing our wills and passing on properties as inheritance?

What to think about before leaving property as inheritance

Children leading the same lifestyle as their parents

In the 21st century, most affluent households stem from the parents’ wealth due to their own labour and decisions. For example, in the past, cooling measures such as the Additional Buyers’ Stamp Duty (ABSD) did not exist and they were able to accumulate wealth through multiple property investments. With that, they were able to provide for their children what they did not get in their own childhood and pamper them as they should. 

However, the problem comes when their children are out of touch with reality and do not understand the work that comes with the money they are given. Seeing their parents spend lavishly on branded goods and services will inadvertently lead them to doing the same as this is all they have ever known. Should the children not hold a stable income of their own, they would be at risk of their property being liquidated. Should the property that is being passed down still have a mortgage to be paid off, will your children be able to afford to pay it? In the unfortunate case whereby they are not able to take on the loan due to their income status, they will have to liquidate the house. 

Breakdown in Trust and Communication

In the same study by The William Group as quoted above, they reported that the major factor that causes families to lose their wealth would be Trust and Communication breakdown – accounting for 60% of families who did not retain their wealth by the third generation in the study. 

In another Straits Times article, a couple overpaid for a real estate asset to secure a steady cash flow of US$1 million per annum. This would go towards their two children and give them a financial safety net for life. However, both of their children chose to live and work abroad and did not want to oversee this asset in the USA. As a result, the parents sold the house at a loss of more than US$50 million instead. When there is a disconnect between expectations from parents and children, cases like these illustrate the unfortunate outcome which could create rift within the family. 

In a Singaporean context, let’s say you have left your HDB flat to your children and they have also bought their own flat. Singapore forbids anyone from owning more than one HDB flat, hence either their flat or the one that they have inherited needs to be sold. While some families want to keep a family house as “tradition”, some children may not subscribe to that thinking and have internal strife with other relatives over managing the flat they are left with. 

On the other hand, if you own a HDB flat and inherit a private property, you will have to sell the private property if your HDB has not fulfilled its MOP. If it has, you can keep both properties. However, the catch is that you and your family need to live in the HDB while the private property could be potentially rented out as an alternative. Is the point of leaving a private property to your children for them to live in a condominium and have a better quality of life or for them to capitalise on rental earnings? Without clear expectations set with your children, this could result in a headache for them after inheriting this property.

How to Equip Children to Handle Their Inheritance

Teach them the skills to succeed in life

As the old saying goes, “Give a man a fish and he will eat for a day. Teach a man how to fish and he will eat for life.” Just allotting a sum of money to your children without any context will be a disservice to them. It could potentially distort their perspective in life, just waiting for the inheritance to befall them, and prevent them from creating their own path in life. Therefore, equipping your children with the right values and skills to succeed with their own effort is key to preparing them for life. Inheritance should be viewed as a safety net or boost and not a source of income. 

Have transparent discussions about finances

Older generations may find it taboo to talk about sensitive topics, including finances. However, doing so only enforces the idea that money is something to be scared of, leading to failure to properly account for it. Hence, educating your children on the family’s financial situation and how to handle their own money helps them to build a healthy financial intelligence (FQ). In the future, they will be able to manage and sustain their financial wealth by understanding how money works.

Start talking about inheritance early

An example of doing so can be illustrated by this case study. A mother who wanted to ensure her three young children to understand how their inheritance will be used in future. One child mentioned that they read a story on the lack of clean habitats for turtles, this spurred the mother to reach out to turtle rehabilitation centres which can be the philanthropic part of that child’s inheritance. At the end of the session, the child drew pictures of turtles and hung them in the playroom to serve as a reminder of their interests. 

Having conversations about money does not need to be a formal session. In this example, the ideas of what the child cares about is factored into their inheritance in an engaging and simple manner which will follow them to adulthood. 

Think about what kind of head start your children really need

Warren Buffett once said, “Leave the children enough so that they can do anything, but not enough that they can do nothing” which ties in to the next point. Inheritance can come in many forms and can benefit your heirs differently. It is important to consider their needs or pain points before jumping to write the will. Property can be a great gift for your children to raise their future family, especially with Singapore’s ever increasing housing prices. However, while there is no stamp duty payable for inherited properties, leaving properties to your children will increase their property count. And if they have plans to purchase their own property, they may incur ABSD. To avoid the ABSD and still go ahead with their plans, a possible option would be to sell off the inherited property. But depending on when the inherited property was purchased, they might incur the Seller’s Stamp Duty (SSD) when they sell the property, which will eat into their cash proceeds.

It might still be worth it to bite the bullet and pay the SSD, since monetary funds can help kick start an entrepreneurial child’s business ideas and give them more resources from the get go. After all, inheritance is a gift, and a gift should be crafted personally for the receiver. 

Final Words

All in all, inheritance should be a tool for your children to further their growth and ease any financial worries in crucial stages of their life. In Singapore where the cost of owning a property is increasing annually, securing a future home for your children is arguably a wise investment and an effective hedge against economic downturns, as long as your children’s expectations are aligned with yours. 

If you need advice on how to purchase an investment property for yourself or your children – reach out to us here and we will be more than happy to assist. 

The post Property as Inheritance: A Gift or A Curse? appeared first on Insights by PropertyLimBrothers.

Prime Minister Lee Hsien Loong delivered this year’s National Day Rally speech on 20 August 2023, Sunday. Amongst the government initiatives and measures announced during the speech was the reclassification of HDB towns to ensure that public housing remains accessible and affordable for Singaporeans of all income groups, as well as to achieve a good social mix and to keep the system fair. 

Previous measures that were rolled out in recent years include the Prime Location Public Housing (PLH) model, tighter rules for non-selection of BTO flats and a new priority group, increased grants for first-time homebuyers buying a resale HDB flat, as well as ramping up new flat supply to meet housing demand.

In this article, we will be giving a quick rundown of the new framework announced during the National Day Rally speech. You can also look forward to our upcoming webinar, where we will be sharing some key takeaways from the speech that could shape your approach to navigating Singapore’s real estate landscape in the future.

New Classification Framework for HDB

Under the previous framework, HDB towns were classified into ‘mature’ for estates that were more developed and ‘non-mature’ for estates that were further away from the city centre and less developed. In his speech, PM Lee acknowledged that in today’s context, the lines between mature and non-mature have been blurring – current non-mature estates are not as underdeveloped as they were in the past. Therefore, a new framework will be rolled out from the second half of 2024 and HDB will no longer refer to new projects as mature and non-mature. The reclassification will not retroactively affect existing projects or those that have been launched.

The new framework announced will classify future Built-To-Order (BTO) projects into three categories – Standard, Plus, and Prime projects. The below graphic shows where each category of flats can be found.

Standard projects will come with a 5-year Minimum Occupation Period (MOP), after which the owner can sell the flat on the resale market with no income ceiling restrictions on the resale buyer. These projects will be launched islandwide, with the standard subsidies and restrictions.

The Plus projects, introduced by PM Lee during the speech, are projects that are located in “choicer” locations within a region. These projects are often located near MRT stations, and possess good attributes (such as an abundance of amenities or waterfront living) that would make them more popular among applicants. An example cited by PM Lee was Bayshore in Bedok, which will be a short walk from two MRT stations, near a shopping mall and community centre, and is just across the road from East Coast Park and the waterfront. These projects will receive more subsidies, but with stricter sale conditions such as a 10-year MOP and subsidy recovery upon resale as well as an income ceiling for resale buyers. The Plus model enables HDB to moderate prices in these “choicer” locations and keep them affordable while maintaining a good social mix. More information about these restrictions will be announced by HDB at a later date.

Lastly, Prime projects are projects like those currently offered under the PLH model – located in or around the city centre. These projects will receive the most subsidies and the tightest restrictions to moderate windfall gains.

Below is table summarising the new framework:

This new framework aims to solve HDB’s dilemma between reducing the lottery effect and achieving a good social mix while keeping the system fair for all homebuyers. At the same time, this will also keep home ownership accessible and affordable to all income groups. 

More Housing Options for Singles

New Flat

At the time of writing, singles above the age of 35 who wish to buy a new HDB flat are only allowed to buy a 2-room Flexi flat in non-mature estates. With the new framework, singles will no longer be restricted to only non-mature estates, and will soon be able to buy new 2-room Flexi flats from HDB in all three categories (Standard, Plus, Prime) in any location. This will provide singles with more location options, potentially benefiting Single groups like those who want to live near their parents in current mature estates. 

Resale Flat

Previously, singles were not allowed to purchase Prime Location Housing flats, even from previous owners. However, with the reclassification and new framework, they can now acquire 2-room Prime Flexi units from the resale market, as well as any size Standard or Plus resale units (with the exception of 3Gen flats) in any location, subject to income ceiling.

Closing Comments

This new framework will undoubtedly send ripples across the public housing market in Singapore, and will significantly change the way HDB price and sell new flats in future BTO sale launches. Given the public discourse regarding housing options for singles, it is heartening to see that the government has taken steps to address their concerns and ensure that this group of homebuyers will now have a wider range of options to meet their needs.

What do you think about this new framework? What are the possible repercussions and will it have a significant impact on your property decisions in the near future? Join us at our upcoming webinar, where we will discuss these new changes in-depth and address some of your burning questions. If you need a second opinion on how to navigate the property landscape in view of these new changes, do reach out to us here. See you in the next one.

The post National Day Rally 2023: New Framework For Singapore’s Public Housing From Second Half Of 2024 appeared first on Insights by PropertyLimBrothers.

Navigating the real estate market in Singapore can be a daunting task to take up with its ever-changing landscape, regardless of the level of expertise you possess. Transactions within the real estate market can be complex and filled with a wide range of terminologies and jargon you may need to decipher.   

So, whether you are someone looking to buy a new home for the first time, an investor brushing up on your real estate vocabulary, or a fellow reader coming from part 1 of our comprehensive guide, familiarising yourself with these important terms can equip you with the knowledge required to navigate Singapore’s real estate landscape. 

In part two of this guide, we go through an extensive list of key terms and definitions that are commonly used in the industry. 

Let’s jump right into some terms that will shape your understanding of Singapore’s real estate market. 

Executive Condominium (EC)

An Executive Condominium (EC) is a strata-titled apartment that falls under the public-private housing hybrid scheme, where it is developed and sold by private developers, and subject to specific eligibility criteria and regulations that are set by the government.  

ECs were first introduced in the 1990s to cater to citizens belonging to the “sandwich class” comprising households with higher incomes that did not qualify for public housing schemes such as the Built-to-Order (BTO) scheme. Over time, it evolved into an affordable option for those who aspired to own private housing. 

As such, ECs are designed to offer similar facilities and amenities as private condominiums, but at a much more affordable range. These amenities and facilities range from swimming pools and gyms to landscaped gardens and function rooms. 

There are some key points to take note of for Executive Condominiums. There is a set of eligibility criteria that applies to anyone looking to purchase. This includes any existing ownership of other properties, citizenship and permanent resident statuses, and income ceilings. Initial owners of ECs have to fulfil a Minimum Occupation Period (MOP) of 5 years. After that, they can sell it to only Singaporeans and Permanent Residents. Subsequent owners do not have to serve another MOP. Once 10 years have passed, ECs will become fully privatised and available for foreign ownership.

Strata Title

Speaking of the strata-titled housing mentioned above, you may be wondering what a strata title is. 

A Strata Title refers to a form of property ownership that is commonly used in multi-unit developments and units such as townhouses, condominiums and apartments with shared areas. Within this system, each individual owner has complete and legal ownership over their specific unit, along with shared ownership of the facilities and common areas of the residence. This includes swimming pools, parking lots, gyms, gardens, lobbies, elevators and a number of other shared amenities. 

Strata Title developments have regulations that govern the use and conduct of property. For instance, owners may be required to abide by rules on pet ownership, noise control, common area usage, waste management, parking and vehicle regulations, and renovations. Moreover, there are crucial legal components in place that provide a clear framework to ensure that strata title developments are well-governed and function optimally. 

Two such components are the Strata Title Plan and the Strata Title Act. 

The Strata Title Plan is a legal document that outlines the boundaries of ownership and the layout of the development for both individual units and shared spaces. Furthermore, it establishes the responsibilities and rights of each owner and determines the proportionate share of the common areas each unit owner is given. The Strata Title Act, on the other hand, is legislation that provides a framework for managing property, ensuring the proper functioning of these developments, and resolving any disputes that arise. In Singapore, the applicable legislation for strata title developments is known as the Building Maintenance and Strata Management Act (BMSMA).

Management Corporation Strata Title (MCST)

The Management Corporation Strata Title is the managing body that is responsible for the maintenance of the common property in condominiums and other developments with shared facilities and multiple owners. The MCST is established under the BMSMA and its primary functions include the management, maintenance, and repair of the facilities and common areas such as lobbies, gardens, swimming pools, gyms and lifts.   

The process of forming an MCST starts when the developer convenes an initial general meeting (IGM) with the unit owners of the development in order to transfer the management and control of the common property to the unit owners. The unit owners then elect the members of the Management Council during the IGM, granting them the responsibility for the management and administration of the MCST. After the meeting, the MCST is formally registered with the Strata Titles Board (STB).

En bloc Sale

Coming from a French word, that means “as a block” or “as a whole”, an En bloc Sale is the collective sale of a development like a residential condominium by the majority of owners. These sales enable the redevelopment of a site into a new project – both residential and commercial. 

The process of the sale typically starts when a group of owners within a development gather signatures to initiate a collective sale. At least 80% of the residents must agree and give a signature to demonstrate a collective intent to sell for an en bloc to be possible. Negotiations start if and when a developer expresses interest, and the process moves forward with a Collective Sale Agreement (CSA). The timeline of the sale, from start to finish, can range from a few months to over a year. This entire process is governed by the Land Titles (Strata) Act. 

En bloc sales enable owners to sell their units or shares at a premium price, and this is especially good for individuals who own an underutilised or older property. However, these financial benefits can also come with a few downfalls. While owners can use the financial gain from this sale as a means to finance a new place, they do so at the expense of losing a home with sentimental value. And, in addition to the uncertainty and the lengthy sale process, en bloc sales also result in some owners having to involuntarily sell their homes.

We previously had a chat with an en bloc expert on our educational Youtube channel NOTG, so be sure to check that out for more insights on the processes behind successful en bloc sales.   

Share Value

The share value of a property represents the proportionate share each strata unit is entitled to in the same development. It is a factor that determines the number of shares one owner has relative to the other owners. This further helps each unit owner determine their contributions to certain maintenance fees and their voting rights for things such as an en bloc sale. 

When calculating the share value, the unit size, the portion of common facilities and the number of units you own are taken into account. The table below shows the groupings of share value by floor area. 

Selective En bloc Redevelopment Scheme (SERS)

The Selective En Bloc Redevelopment Scheme (SERS) is implemented by the Housing and Development Board (HDB) to rejuvenate older residences by replacing them with upgraded developments. This programme aims to improve and enhance the environment and the infrastructure of older HDBs. Through the scheme, ageing HDB estates that are suitable are selected for redevelopment. It is key to note that not all residences are eligible for redevelopment and must meet eligibility criteria to be considered. Factors in the criteria include the redevelopment potential, the age of development, and some long-term plans that must be taken into consideration. 

Eligible residents whose developments are selected under SERS will be relocated and offered replacement flats that are typically newer, with more facilities and amenities. In addition to that, residents may also receive compensation for the value of the existing flats along with other incentives offered by the government. 

CPF Ordinary Account (OA)

The CPF Ordinary Account is an account within the Central Provident Fund (CPF) scheme. This scheme is an all-encompassing social security savings plan that helps individuals in Singapore set aside funds for various reasons such as healthcare, retirement, and housing. 

The CPF OA, in particular, is one of the three accounts within this system and is used specifically for housing-related payments such as a mortgage, mortgage insurance, down payments, monthly instalments, stamp duty and legal fees. 

Homebuyers who are eligible for CPF Housing Grants will also have the funds disbursed into their CPF OA, and the grants can be used to pay the downpayment for their HDB flat.

Urban Redevelopment Authority (URA)

The Urban Redevelopment Authority is Singapore’s national urban planning authority that oversees the land use, planning and development of the urban areas of the country. The URA plays a crucial role as a key government agency to shape the physical landscape of the country while ensuring sustainable development. 

URA’s key functions include planning the physical development of Singapore’s urban landscape, allocating and regulating land use for residential, commercial and recreational purposes, and preserving and conserving the country’s cultural and historical landmarks.     

Progressive Payment Scheme

The Progressive Payment Scheme is a method of facilitating payments that is commonly used in the purchase of new residential properties in Singapore, specifically for new launch ECs, condominiums, and landed properties. With this, the purchase price of a property is broken down into instalments that are aligned with the stages, or progress, of the construction period of the development. The timeline or period of construction and, as a result, the number of instalments and payment percentages varies depending on the specific developer and project.

The schedule for the progressive payment scheme is generally outlined in the Sale and Purchase Agreement (S&P), and each payment is linked to a different stage such as the completion of the foundation works and the issuance of Temporary Occupation Permit (TOP). Developers are responsible for keeping buyers up-to-date with progress and providing any necessary documentation for buyers to facilitate payments on time.

These terms help ensure accountability and transparency for all parties involved in the purchase of any property.

Resale Levy

Those who wish to purchase a second subsidised flat from HDB after selling their first subsidised flat will be subjected to a resale levy. The amount of resale levy payable is based on the flat type of the first subsidised flat. The table below shows the resale levy payable for each flat type:

Gross Floor Area (GFA)

In the Singapore real estate scene, the term Gross Floor Area is used to describe the total floor area of a building measured from the exterior walls of a building. This includes the floor area of corridors, lobbies, mechanical rooms, offices, and other building facade elements. However, the GFA does not cover outdoor spaces such as car parks, balconies, terraces and rooftop gardens. 

Gross Floor Area serves multiple purposes within the real estate market as it determines the maximum size and density of buildings allowed on different plots of land while complying with building codes and zoning regulations. Moreover, it allows for optimal land utilisation, efficient use of limited spaces and assistance in space and design planning while taking sustainability into consideration. 

Additions & Alterations (A&A)

As the name suggests, Additions and Alterations is the process of making changes and adjustments to any existing properties. This is typically a process undertaken to enhance, upgrade, or alter the aesthetics, functionality and use of any part of a building. 

Additions refer to the construction of new structures or the extension of existing ones. Examples of this include adding new rooms or floors, as well as building extra spaces for new facilities. Alterations are modifications made to existing areas on a property. This can range from an upgrade of the plumbing system in your condominium to refurbishing the master bedroom and kitchen. 

Depending on the specific requirements and demands of a property owner, these works can vary. Furthermore, this process can be carried out by construction firms, developers, or property owners after all of the necessary paperwork and permits are approved by the relevant authorities. 

Some typical A&A works in Singapore are extensions of floor plates, swimming pools, changes in the location or types of staircases, and additions of lifts among many other enhancements.  For more information, refer to the URA guidelines for A&As here.

Income Ceiling

In order to be eligible for certain types of housing schemes and subsidies in Singapore, individuals or households must have an income that falls within a maximum gross monthly household income. This is referred to as the income ceiling. 

The income ceiling in Singapore is set by the Housing Development Board (HDB) and can vary on the basis of the type of subsidy and housing scheme. Income ceilings are used by the government to ensure a fair distribution of housing resources among those who may have a greater need for affordable housing. Moreover, they also help prevent overconsumption of housing subsidies by households that bring in higher incomes. 

Here are some common household income ceilings in Singapore as at the time of writing:

Capital Gain/Paper Gain

A capital gain, in the context of real estate, refers to any profit that is made when properties are sold for a higher price than their original purchase price. Basically, this is the amount that represents the difference between the selling price and the original cost, which is lower. This is calculated by subtracting the original purchase price of the property from the new selling price. 

A paper gain refers to an increase in valuation since the purchase, while the property is still owned by the buyer and has not been sold yet. It typically refers to unrealised profits from a property that has not been completed or is not ready to be sold. 

Rental Yield

Rental Yield is the measure of the annual rental income that is generated by a property in relation to its market value. A rental yield is a return on investment (ROI) that property investors can expect to gain from a rental property. This metric, or percentage, is an important one for real estate investors to consider as it assists in gauging the potential profitability of rental properties. 

Rental Yield is calculated by dividing the annual rental income by the property’s market value. This result is expressed as a percentage. A low rental yield indicates a lower return, whereas a higher rental yield suggests a higher return in relation to the property value. 

The rental yield in Singapore ranges from 2% to 5% for residential properties, however, the rental yield can differ based on market conditions, location and property value.     

Tenancy Agreement (TA)

A Tenancy Agreement (TA) is a legal document between a tenant and a landlord that outlines terms and conditions that gives the tenant the right to occupy a rental property for a specific period of time in exchange for a rent payment. 

The TA is a document that can be referred back to should any issues or conflicts arise between the tenant and landlord as this document covers all necessary factors such as property description, lease duration, security deposit and rent payment, maintenance and repairs, and privacy and access.   

Cooling-Off Period

In Singapore, a buyer of any residential property has the option to reconsider their purchase and potentially withdraw from the agreement within at least 14 days after the booking or signing of Option to Purchase (OTP). This is called the cooling-off period under the Housing Developers (Control and Licensing) Act (HDCLA). In the event that the buyer decides to withdraw from the purchase, they will forfeit their Option Fee (typically $1,000 for resale HDB and 5% of purchase price for private properties).

During the cooling-off period, the buyer can seek legal advice and review any contracts and the purchase agreement before finalising the transaction.

Defect Liability Period (DLP)

The Defect Liability Period is the duration of time in which a property developer has the responsibility to address any major or minor defects that might arise after the completion of a property. Usually, the DLP starts as soon as a Temporary Occupation Permit (TOP) is issued and all infrastructural work within the property is completed. 

If a buyer discovers any defects during the Defect Liability Period, he or she must follow procedures given in the Sales and Purchase Agreement and contact developers to sort out the issues. Moreover, the duration of the DLP can vary based on the type of property being purchased. For instance, the standard DLP for private developments and HDB Flats is 1 year. 

Fire Sale

A fire sale occurs in a situation where a property is sold at a steeply discounted price, often below market value. This is usually a result of an urgent financial issue on the developer’s or seller’s side that causes them to accept much lower selling prices. Other situations that can call for fire sales include instances where the investors or property developers want to sell off in a small duration of time in order to generate cash flow and reduce losses. 

As always, when making decisions regarding the purchase of any property, it is strongly advised to exercise thorough research and due diligence to make the best and most well-informed decisions. One way to do so is to work with property consultants  that can offer you professional guidance and assistance.

Subsidy Clawback

A subsidy clawback is a process of recovering a subsidy that has been previously provided to an individual or organisation. In terms of Singapore real estate, a subsidy clawback allows the government to recover a portion of the subsidy that is given out. This, as a result, ensures that the availability and affordability of subsidised housing is maintained. 

A 6% subsidy clawback was imposed in 2021 for certain projects that fall under the Prime Location Housing (PLH) Model, which aims to keep public housing located in prime areas affordable and accessible for Singaporeans. What this means is that upon selling a flat, the property owner is obligated to pay 6% of the resale price back to HDB. Note that the 6% subsidy clawback only applies to the first resale at the time of writing.

Final Words

We hope that this article has given you some valuable insights you can use on your journey in the real estate market in Singapore. If you still find yourself with questions on different concepts, do not hesitate to reach out to us here. We will be back with more soon, see you in the next one!

The post A Comprehensive Guide To Real Estate Terms In Singapore: Part 2 appeared first on Insights by PropertyLimBrothers.