Upgrader Navigating Challenges to Acquiring their Dream Home.
Overall Situation
Meet Jasmine and Wei, a couple who stays in the East but wanted to shift to the central region due to a job transfer. With little knowledge about the central's neighbourhoods and the quantum, they sought the help of ReactHome Agency to find a home that was not just a place to live, but a reflection of their dreams and aspirations
Challenges & Solutions
While exploring options, Jasmine and Wei fell in love with a luxurious condominium unit situated in the bustling heart of Orchard Road. The amenities were top-notch, the view was unparalleled, and the interiors were a blend of modernity and comfort. It seemed to tick all their boxes.
However, upon further investigation, we identified a potential pitfall:
The condominium was a leasehold property with only 58 years left on its 99-year lease.
This presented a series of concerns:
1
Resale Value : Properties with shorter leases can depreciate faster, potentially affecting resale value down the line.
2
A Problem on Financing: Many banks are more conservative with their loan quantum and tenures for properties with shorter lease durations. This could affect the mortgage terms available to Jasmine and Wei.
3
Implications of Long-term Stay: If Jasmine and Wei planned on staying for the long haul, they might face potential lease expiry issues or need to pay for a lease extension, if available
Addressing this challenge involved a multi-pronged approach:
1
We Provided Financial Forecasting: Our team provided Jasmine and Wei with detailed projections on the potential depreciation of the property's value over time, factoring in the dwindling lease..
2
Our Banking Liaisons: We reached out to our network of financial institutions to get a clearer picture of the loan terms they could expect given the property's lease situation.
3
Always Exploring Alternatives: If We curated a list of comparable freehold properties and newer leasehold properties, ensuring they had alternatives that provided both value and peace of mind.
Outcome: Client Secured Their Dream House
After much analysis, we recommended they shift their focus to freehold property in District 11, blending their desires with long-term assurance. Not only did this offer peace of mind, but it also held promise for future appreciation.
Securing their dream home, the couple praised the agency for its invaluable insights. As they stepped into their new chapter, their trust in our expertise was clear, with promises of heartfelt recommendations to friends and family.
We wish Jasmine and Wei countless happy memories in their new abode.