Best Tips Regarding Your First Property in Singapore
Owning a property is a common goal for most of the young adults of our time. Buying your first property in Singapore is a big financial decision that you should not take lightly.
Many individuals buy property shortly after seeing it, but they don't know how to properly evaluate it. As a result, they often make costly mistakes and get themselves a property that is overpriced and problematic.
To prevent those consequences, there are things that you should look out for when you are buying your first property in Singapore. We have prepared some necessary tips to assist you with your first property purchase in Singapore.
Assess Your Finances and Budget
First things first, you need to assess your budget. You need to evaluate how much you can actually afford first and then move on to finding the ideal housing within your means. A house is a crucial financial investment. If you take out a 30-year loan like the majority of Singaporeans, you will have to make a downpayment and 360 monthly installments.
To calculate how much you can comfortably spend, you can obtain an estimate of the loan that HDB or the banks will issue you. This figure is determined by your savings (and those of your spouse), current income, and age. You can check home loan rates in Singapore to get a good idea of loans in this country.
This estimate is best obtained before the start of your search. This will help you streamline the housing options that you can afford, saving you time from browsing through properties that are out of your price range. Then, you need to obtain in-principle approval (IPA), which ensures that you will be able to borrow a certain amount of money when you need it. Equipped with these, you can go through the inventory of HDB and private houses and ensure that you will be able to pay for what you choose. You can consider using cash instead of your CPF if you can generate enough money, as your CPF funds yield a higher interest rate of 2.5 percent each year.
Know The Type of Available Properties
When you are purchasing your first property in Singapore, you have to decide what type of property you will live in. There are three main types of properties in Singapore and they are discussed in the following.
HDB Flats
HDB stands for Housing and Development Board. These flats are subsidised public housing for Singapore residents. HDB flats are known to carry a land tenure of 99 years and the government of Singapore does not refer to the people living in them as mere renters. Because the owners can rent their flat to someone else if they want to. The majority of Singaporeans opt for this type of housing as they are quite affordable and cheaper than high priced condos.
Condominium
In Singapore, condominiums are one of the most common types of private property. It is differentiated from public housing by its provision of common amenities such as a communal gym, private swimming pools, and tennis courts, as well as security guards on duty. It is a residential property where the owners have a unit inside of a building. Condominiums have common areas, every unit owners jointly use.
Landed
Landed properties, as defined by Singaporean law, are properties that are physically tied to the land that you bought. These properties might have different tenures and regulations that control them from the non-landed equivalents in both the private sector and public sector— apartments under the Housing Development Board (HDB). Landed property owners own the entire land of the situated property. Landed properties have terraced, semi-detached houses and bungalows.
Consider The Location of Your First Home
You have to look for a property which is near to your workplace in Singapore. This is an important tip as it will make your journey to the workplace less as you will get there faster. Also, you might want to be closer to your family and in that way you will be able to provide support to parents when they are in their old age.
Additionally, try to pick a property that is close to public transportation. You can start looking for good properties near any public transportation facilities such as bus stops and MRT stations. Therefore, consider the proper location of your first home in Singapore.
Available Facilities Near Your First Property
Facilities near a property are very important, as they can make the property price vary. As an example, condominiums have common areas which are also equipped with needed amenities. You will see a condominium with a swimming pool, gymnasium, BBQ pits, and tennis courts. There are also some condominiums with comprehensive facilities such as golf driving ranges, bowling alleys and karaoke rooms.
Room Counts of That Property
Room counts are something to be mindful of when you are buying your first property in Singapore. You should look for a property with enough bedrooms and bathrooms for your home. It becomes more important if you have a large family, as big families will need those extra bedrooms and bathrooms. Nobody likes it when someone is hogging the toilet to get in when there is already someone in it.
Know Any Defects in The Property
You should be aware of any defects in the property that you are willing to buy. Any defects of your future home can become challenging because of the lack of experience. Check the walls, floor, windows, ceiling, and doors of the house for any possible defects or issues.
Look out for any hidden cracks in the floor, wall, or ceiling. The crack presence will indicate if the property requires repairs. Also, examine the hinges of the doors whether the door is correctly hinged or not.
The Direction of That Property is Facing
If a house is facing the wrong direction, then it may save a lot of sunlight throughout the day. In this manner, you will be much hotter during the summertime. Also, this will make you spend more on a good air-conditioner to cool down the house.
To avoid such expenses, look for properties that face the East. It will catch sunlight when the sun rises. But the heat will disappear eventually.
Furnishing of Your First Home
When you are getting your first property in Singapore, you have to keep in count whether the property of your choice has enough furnishings. Beds, sofas, washing machines, cupboards or furniture all of which are important to have in a house, so look for them if they are on your preferred property.
Pricing of The Property
Do not buy a property that you can barely afford, or else you will experience stress in the future. You should continuously look for a property where you can easily manage its monthly mortgage payments. To avoid getting an expensive property, unless you want to run out of living expenses after paying the monthly rent.
Floor Level of The Property
The floor levels of your property are important for a couple of reasons. If you love a good view, then higher floor homes will be your cup of tea. Also being on a higher floor, you have better privacy as people can not look inside your house. But if you have a family including young children or elder members, then it is safer to choose a property on a lower floor.
Age of That Property
The age of the property depended on when it was constructed. Depending on the years since the construction of the property, you will be able to sense its condition. This will determine if the property requires repairs in the future or not. You will find wear and tear in the property if it’s old, so consider those marks when you are buying a property in Singapore.
Conclusion
Follow all of the mentioned tips above to have a great time when you are getting a property in Singapore. Also, you can ask around the neighbors of your future home for advice and do your research of the property in your way.
Remember that all of us have our unique needs and preferences. So if you like a property that matches your needs, then just follow our tips and purchase it to ensure a safe and enjoyable stay in Singapore.
