Buying a property in Singapore 101
More than 90% of Singaporeans own their homes. This makes it a no surprise to find out that property-related discussions and questions are vital topics in forums. Property ownership in Singapore, just like in any other country, comes at a high cost. This is Singapore is much tougher considering the rising population and the limited space for expansion. If you are planning to buy a property in Singapore, it therefore imperative that you understand the basic before committing to a property purchase.
For beginners, there is a lot to learn about you need to minimize the risk that comes with the ownership of properties. However, we have compiled fundamental information that all prospective homeowners should arm themselves with. Let us take a look.
Are you buying the property for homestay or is it an investment?
The first and crucial question to ask yourself is whether or not your property is for your family stay, or is it an investment plan. The reason why this question matter s to determine the size of property you need, the location among other factors. Your dream home is not the same as an investment property. The same goes for an investment property which you may find is not suitable to live in. The intention behind the property purchase should be a pointer to the kind of house you need.
How much money do you need for a down payment?
Determining the purpose of your home shouldn’t be a daunting task. After that, the next thing you need to do is know the down payment required to purchase the property in Singapore. Note that the amount you can afford for your downpayment determines your budget. How much you can present as downpayment is, in turn, determines not only by your financial muscles but where you are taking the loan, HDB loan or bank loan.
Finalizing property loan
For you to completely own a property, you need to fund the remainder of the cost after paying the down payment. For those purchasing an HDB flat, then you can choose to take an HDB flat. If you are buying private property in Singapore, then you need to take a bank loan.
Another cost of owning a property in Singapore
Regardless of whether the property is private or HDB, there is another associated cost of owning a property in Singapore. These costs are unavoidable, so you need to consider them just like in paying downpayment and premiums. Some of these costs include a resale levy, agent cost, renovation cost, insurance cost, etc.
Applying for HDB grant
If you are a Singaporean, then you are eligible for HDB grants. There are different housing grants available. They include additional CPF grant (up to $40,000), exclusive CPF Housing grant (up to $40,000), proximity housing grant (up to $20,000) and CPF housing grant. These grants can substantially reduce the cost of owning a property more so to first-time homeowners. Therefore, it crucial to understand what all these grants are and how they can help decide the kind of property that you should go for.