The Benefits of a Terraced Home

Terraced house

Buying a new home is an exciting process. But with so much to familiarise yourself with ahead of time, it can be difficult to know where to begin. One of the first decisions you should make is which type of residential property you would like to live in. There are several different options to choose from, but terraced homes tend to be one of the most popular choices for property seekers all over the globe. Continue reading to find out why your next home should be terraced. 

Increased safety and security 

Terraced housing places you in closer proximity to your neighbours. This can provide peace of mind in the event of a safety or security breach. With so many neighbours within walking distance, you can relax knowing help is on hand whenever and wherever you may need it. It also provides more eyes and ears to detect any potential threats and deter brazen criminals. Terraced housing is one of the only types of residential accommodation to offer increased safety and security whilst still maintaining a great deal of privacy. Whilst browsing your local property market for a rumah teres untuk dijual, it may benefit you to chat to existing neighbours and inquire about any ongoing issues or crime statistics in the area. 

Greater energy efficiency 

Terraced homes benefit from greater energy efficiency than detached properties. By sharing walls with neighbours, there are fewer avenues for heat to escape. Heat is also more likely to spread from one home to another so you can save money on heating bills over time by reducing the need to turn on the heating as often. This also reduces the need for insulation and dramatically improves the energy efficiency of the property. The only downside to this fact, however, is that end-of-terrace homes may not benefit from the same level of energy efficiency due to only having one adjoining neighbour. This is something to keep in mind whilst shopping around for your next terraced home. 

Cheaper to rent and buy 

While costs vary depending on the location, as a whole, terraced housing tends to be cheaper to rent and buy than detached or semi-detached properties. This is why they are such a popular choice for a growing number of first-time buyers. This is usually due to the fact that they offer less living space, but this can be advantageous for small families or those looking to downsize. Renting a terraced property is also a great way to transition from a shared apartment with no garden to a private home with ample green space on a budget. You must research the typical rental and buying costs of a terraced home in your local area and consider cheaper alternatives before making an informed decision. 

Greater sense of community 

If you are looking to move to a neighbourhood with greater community spirit, a terraced home may be the right choice for you. If tenants have occupied their homes for a prolonged period of time, they are more likely to have built up a sense of friendship and comradery amongst occupants living on the street. Neighbours can have a dramatic impact on your happiness at home. It not only contributes to a peaceful, stress-free home life but can provide a sense of much-needed support for single dwellers. Forming a relationship with your neighbours early on also means there will always be someone available to monitor your home whilst you are away on a trip or to receive expensive or time-sensitive parcels on your behalf.

Great location 

Terraced housing emerged in the early twentieth century and has been a popular housing choice for millions of homeowners ever since. They tend to be built in sought-after locations and attract first-time buyers looking for ample indoor and outdoor space on a budget. They are also usually designed to blend into their surroundings as well as a means of providing low-cost housing to small families. Terraced housing can also be built as multi-purpose dwellings with the bottom floor occupied by commercial tenants and the top floor reserved for private residential tenants. This provides maximum convenience for both occupants as shop owners can save on rent costs and homeowners are not required to travel far for essential groceries or services. 

There are several benefits associated with buying or renting a terraced home. They provide occupiers with increased safety and security in the event of any suspicious activity, benefit from greater energy efficiency, are relatively cheaper to rent and buy, have a greater sense of community spirit, and are usually located in sought after areas. As a result, they are a popular choice of housing for first-time buyers, small families, and those looking to downsize. By researching your local property market, you can weigh up the pros and cons of terraced housing and make an informed decision. 

The Singapore Residential Property Market Outlook 2021

Prices in the Singapore residential property market have been rising between the closing quarter of 2020 and the opening quarter of 2021. Properties viewed as residential are Housing and Development (HDB) flats, Housing and Urban Development Company (HUDC) apartments, condos, bungalows, terraced houses, and cluster houses. 

Trends 

According to the Urban Redevelopment Authority, the first quarter of 2021 showed a price increase for private residential properties in Singapore by 2.1 percent. However, an even steeper increase of 3.3 percent growth in price occurred between the first and second quarters of 2021. As estimates were lower, the property market has responded better than expected for sellers. This is the highest increase since the second quarter of 2018. The upward trend has continued unabated for four quarters in a row. 

Landed properties in Singapore rose by 6.7 percent in the first quarter of 2021, making up for a decline of 1.6 percent in the last quarter of 2020. The increased prices for condominiums coupled with a desire for additional space has made landed properties popular. 

The price of non-landed properties rose by 3 percent in the last quarter of 2020 and by a whopping 6.1 percent in the first quarter of 2021 in the central region (RCR). Prices in surrounding areas (outside central region OCR) did not increase as dramatically – 1.8 percent in the last quarter of 2020 and 1.1 percent in the first quarter of 2021. The core central region (CCR) showed a 3.2 percent raise at the end of 2020, followed by a much more moderate increase of 0.5 percent in the next quarter. 

The good performance of the sellers’ market saw 4,249 properties sold in the last quarter of 2020 increase to 4,519 sales in the first quarter of 2021, up by 6.4 percent. More than half of these were resales versus new properties, with 3,493 units sold by developers.

Reasons for the strong performance of the residential property sector can be attributed to the recovery of foreign investment demand and a high desire to own private residential property locally. Singapore is considered one of the safest countries to live in globally, thereby attracting the foreign market. Despite this, property prices in Singapore remain in the highest three most expensive locations in the world.

Factors Affecting Foreign Investors

Many foreign investors find it suits them to work and live in Singapore. Business policies in the country make it an ideal base for reaching out to the Asia Pacific region.

However, these buyers face additional charges when purchasing a property here. Local buyers pay Buyer’s Stamp Duty (BSD) and a lower Additional Buyer’s Stamp Duty (ABSD) while foreign investors must pay BSD and a much higher ABSD. Both of these items are calculated on the higher the purchase price and the property’s current value. ABSD liability is also determined by whether the purchaser is a private individual or a business, whether or not the buyer is a resident of Singapore, and by how many properties the person or entity currently owns. The Immigration and Checkpoint Authority (ICA) is responsible for granting residency status to persons. 

Foreigners buying a residential property in Singapore were charged 20 percent ABSD in 2018, whereas permanent residents paid 5 percent when purchasing their first home. Costs can be cut by becoming a permanent resident. There are fewer restrictions for foreigners when buying a business property such as an office building than a residential property. Furthermore, certain residential properties can only be purchased by residents, such as Housing and Development Board public flats, bungalows above a certain size, and certain landed properties. Approvals are needed from the Singapore Land Authority. 

Private condominiums are a good option for foreign investors due to zero restrictions. There is no limit on the number of condos that can be purchased. 

Selecting a Property for Purchase

Once the decision has been made to purchase a residential property in Singapore, the buyer can start examining the market for a prospective home. While this is more difficult for the foreign investor, it can be simplified by going through an agency such as PropertyGuru. This company provides a comprehensive question and answer service using AskGuru. Questions range across a multitude of useful subjects such as advice on the choice between two properties for investment purposes and topics such as inheritance and legacy planning. 

There are several steps for buying property in Singapore. Firstly, an affordability test is needed, then a check to see what taxes will be required. Next, available listings can be checked to see what is on the market and an estate agent hired. Finally, apply for a bank loan and make an offer on the desired property. 

The residential market in Singapore is a seller’s market and the trend is set to continue throughout 2021.