When considering purchasing a condominium, it’s easy to focus solely on the price tag of the property itself. However, there are often several hidden costs involved that buyers may not initially account for. If you’re eyeing Faber Modern Condo as your future home or investment, it’s essential to understand all the associated costs, both upfront and ongoing. While the appeal of a well-designed, modern living space in a prime location like Faber Modern Condo is undeniable, potential buyers need to be aware of these hidden costs to avoid financial surprises down the road.
Before diving into the specifics of hidden costs, it’s wise to visit the Faber Modern Condo website for details on the development and its pricing structure. This will provide you with a clearer understanding of what’s included in your purchase and what extra costs may arise. Still, there are several important expenses that could significantly affect your overall budget, which we’ll explore here.
1. Maintenance Fees
One of the most common hidden costs when purchasing a condo is the monthly maintenance fee. This fee is used to cover the upkeep of common areas and shared facilities such as the lobby, swimming pool, gym, and other amenities. In developments like Faber Modern Condo, maintenance fees are usually calculated based on the size of your unit, the number of units in the building, and the facilities offered.
While it may seem like a minor expense at first, maintenance fees can add up over time. For high-end developments with luxurious amenities, such as Faber Modern Condo, maintenance fees tend to be on the higher end. It’s crucial to inquire about the exact maintenance fees before purchasing to ensure that it aligns with your long-term financial plans.
2. Stamp Duty
Stamp duty is a tax imposed by the Singapore government on property transactions. When you purchase a condo like Faber Modern Condo, you’ll need to pay stamp duty, which is calculated based on the purchase price or market value of the property—whichever is higher. The rates are typically 1% for the first $180,000, 2% for the next $180,000, and 3% for any amount above that.
It’s important to factor in stamp duty as part of your upfront costs, as this amount can be substantial depending on the price of the condo. For example, if you’re buying a property worth $1 million, your stamp duty could be as much as $24,600. Keep in mind that this tax is due shortly after the sale and purchase agreement is signed, so it’s essential to budget for it in advance.
3. Property Tax
In addition to the stamp duty, property owners in Singapore are also required to pay property tax. Property tax is calculated based on the annual value of your property, which is determined by the Inland Revenue Authority of Singapore (IRAS). The annual value is the estimated rental income your property could generate if it were rented out.
Property tax rates can differ for owner-occupied and non-owner-occupied properties. For Faber Modern Condo, property tax is an additional ongoing cost to consider, as it will be based on the value of the unit. It’s important to calculate this tax as part of your yearly budget, as it can vary based on changes in the annual value and tax rates.
4. Renovation Costs
While the condos at Faber Modern Condo come with high-quality finishes and well-designed layouts, you may want to make some personalized changes to fit your style or needs. Renovation costs can be another significant hidden expense when purchasing a condo. Depending on the scope of the work you want done—whether it’s installing new flooring, updating the kitchen, or redesigning the bathrooms—renovation expenses can quickly add up.
Before purchasing a unit, it’s a good idea to get quotes from contractors to understand the estimated costs for renovations. Even if you’re not planning to make major changes right away, it’s important to budget for these costs in the future.
5. Mortgage Fees and Interest
Most buyers will finance their condo purchase through a mortgage, and while the loan itself is a major part of the expense, there are other associated costs. Lenders may charge processing fees, valuation fees, and legal fees in connection with securing a mortgage. These costs can add up quickly, so it’s essential to ask your lender for a clear breakdown of all fees involved.
Additionally, interest payments on your mortgage will be an ongoing cost throughout the loan term. Depending on the interest rate and loan tenure, these payments can significantly affect your long-term budget. It’s essential to factor in the total interest cost when deciding how much you can afford to borrow.
6. Insurance Costs
Homeowners insurance is another expense that should not be overlooked. While it’s not legally required, it’s highly recommended to protect your investment in case of unexpected events like fire, theft, or natural disasters. Condo insurance typically covers personal belongings within the unit, liability in the event of accidents, and sometimes even damage to the interior of the unit.
The cost of home insurance varies depending on the size and value of your property, as well as the level of coverage you choose. Be sure to obtain insurance quotes to determine the cost and include this in your ongoing expenses.
7. Utility and Service Costs
In addition to the purchase price, condo owners need to consider ongoing utility costs. Utility bills, such as electricity, water, and gas, can add up each month depending on the size of your unit and usage. At Faber Modern Condo, the size and layout of the unit can influence the utility costs. Larger units generally result in higher utility bills.
Moreover, you’ll also need to account for service charges for things like garbage collection, security services, and cleaning. These service costs are often bundled with maintenance fees, but it’s important to check with the property management to understand what services are included and which ones are charged separately.
8. Moving and Relocation Costs
Finally, don’t forget to factor in the cost of moving. Whether you’re moving locally or from abroad, there will be expenses related to hiring movers, packing materials, and transportation of your belongings. If you are moving into a larger unit, these costs may be higher due to the increased volume of items you need to relocate.
Conclusion
Purchasing a condo like Faber Modern Condo is a significant financial commitment, and while the initial price tag might be the most obvious cost, there are several hidden costs that you need to consider. Maintenance fees, property taxes, stamp duty, renovation expenses, mortgage fees, and other ongoing costs should all be factored into your financial planning. By understanding these hidden costs upfront, you can make a more informed decision and avoid financial surprises down the line.
