When is the right time to sell your property?

Whether you’re a homeowner or a home investor, properties will invariably constitute an integral part of your financial investment plans. Therefore, the financial value of your property is something you’d want to pay attention to.

That said, how do you know when you should exit the market?

A stagnation in the property’s capital gain appreciation is one sign that you should exit the market. The lack of upcoming developments in the area, within the next three to five years, can mean that your property would not be able to appreciate in value. By selling your property, you can unlock the funds in the property and reinvest in one which, based on the future developments marked out in the URA Master Plan, has a projected capital gain.

Your property's potential for being selected for en bloc, may be another factor influencing your decision to exit the market. Many homeowners are hoping to sell their property at markedly higher prices through a successful en bloc tender. However, is it a good idea to hold onto your property, and await an en bloc sale which may not materialise?

Even if your property is selected for en bloc, consent from homeowners is required for the sale of the site. Developers have to obtain at least 90% of approval in terms of share value and strata area, from homeowners in developments less than 10 years old. For developments that are older than 10 years, 80% of consent in share value and strata area is needed. Hence, you may not want to pin all your hopes on an en bloc sale going through.

Besides, with an additional buyer’s stamp duty (ABSD) penalty imposed on developers who do not finish selling their units, developers are more cautious about proceeding with an en bloc sale. Therefore, selling your property to unlock the funds, which can be reinvested into another property, would be better than waiting for a successful en bloc sale.

Thinking of selling your property, but still feeling unsure? At Wonder Homes, we have helped many homeowners with exiting the market. Check out our website at www.wonderhomesg.com, and drop us a call today!

Pamela Tan: 9457 6525

Shirley Wang: 9436 1909