Buying a Home: Making Trade-offs – First Steps
NJ: Hello readers. Whenever we embark on purchasing a residential property, we often have a long list of motivations and wants. Maybe we hope the property will fetch a high return in the future. Maybe we dream of a spacious apartment that’s also right next to an MRT station. And then there’s the balcony, the view, the gym, the school nearby… the list goes on.
But reality often steps in — budgets, loan limits, and the actual supply of homes in the market can mean making some tough trade-offs.
TK: Exactly. And the first step to resolving this is understanding your own primary motivation. Ask yourself: Are you buying for owner occupation, for investment, or a bit of both?
NJ: That’s such an important question. If you’re buying for owner occupation, lifestyle needs take priority — the location, layout, surrounding amenities, and even the “feel” of the home will matter more. If you’re buying purely for investment, you’ll focus more on rental yields, capital appreciation potential, and market liquidity.
TK: And when it’s a combination of both, the challenge is balancing personal comfort with investment fundamentals.
Case Study 1: A young couple bought a two-bedroom unit near an MRT station in the city fringe. They rented it out while working overseas, prioritising rental demand and CBD access. But they also chose a layout they could see themselves living in when they returned — ensuring both short-term returns and long-term personal value.
NJ: Which brings us to the next point — setting your non-negotiables versus your nice-to-haves.
TK: Right. Your non-negotiables are things you won’t compromise on — maybe it’s being within 1km of your child’s school, or staying within a certain budget. Nice-to-haves are features you’d love, but can live without if it means getting a better overall deal.
Case Study 2: A single buyer wanted both a central location and a pool. When she realised the pool added $150,000 to the price, she chose a non-pool development in a prime location and spent the savings on custom interiors that truly suited her lifestyle.
NJ: It’s like building your own “property decision compass.” Once you know your priorities and non-negotiables, the rest of the process becomes much less overwhelming.
TK: If you’re buying with an investment-first mindset, you need to look through the lens of a renter. Why would someone be willing to pay a premium to live there? Is it the proximity to job centres? Is it the MRT station they use daily? Or is it access to international schools and family-friendly amenities?
On the other hand, if you’re buying for owner occupation — say you’re single — school proximity might not matter at all. If you drive, you might trade MRT convenience for a larger home in a quieter neighbourhood.
Case Study 3: An IT professional chose a larger condo unit 15 minutes from the MRT rather than a smaller one right next to it. The extra space allowed him to set up a dedicated home office, which improved his quality of life more than the shorter commute would have.
NJ: That’s very good advice. One really has to break down their motivations to understand which attributes are truly key in their home search.
TK: NJ, what’s your take on the property search process?
NJ: I think it’s about reframing your mindset to balance affordability with needs. It’s rare to find a property that ticks every single box and still fits the budget. Sometimes, you have to look beyond the current state of the property and think about how you can make it work for you.
Case Study 4: A family initially dismissed a three-room resale flat because it felt too cramped. But with a creative renovation plan — combining two bedrooms into one and opening up the kitchen — they turned it into a spacious, functional home while staying within budget.
TK: That’s so true. Sometimes, it’s about optimising the space and adjusting the property’s attributes to suit your lifestyle, rather than waiting for the “perfect” property to appear.
NJ: Exactly. And these thought processes are the first steps toward a more focused home search. Start by listing your priorities on paper.
TK: Then, go through brochures of shortlisted properties to see which ones match your priorities and budget. You could even assign a weight to each criterion to make comparisons more objective.
NJ: And always check if the property offers flexibility for future changes. For developments built with prefabricated components, layouts might have structural limitations — so check carefully before committing.
TK: Well said. At the end of the day, buying a home is a blend of heart and head — you want it to feel right, but it must also make sense financially and practically. If you understand your motivations, prioritise your needs, and keep an open mind about possibilities, you’ll find a property that works for you today and adapts with you tomorrow.
🩺 Property Doctor’s Checklist – Making the Right Trade-offs
Define your primary motivation – Owner occupation, investment, or both?
List your non-negotiables – Must-have factors like budget, location, or size.
Identify your nice-to-haves – Features you can compromise on if needed.
Think like your target occupant – If investing, consider what renters value most.
Reframe your mindset – Focus on making the property work for you, not just finding the “perfect” one.
Check future flexibility – Understand renovation or layout change limits before buying.
Weigh each factor – Assign scores to shortlist properties objectively.
