Adulthood is as scary as it sounds. The planning for your future and to start a family of your own soon are things that most adults fear. You start looking for project details of properties in Singapore, such as the project details for Icon condominium. However, prices for properties in Singaore are expensive.
You are swarmed with the negative comments by people around you telling you various horror stories that you can ever imagine, for example the debts that you got yourself into after getting your first property in Singapore and the tedious process of getting a property in Singapore. The horror of getting into a debt with the bank for at least 2 decades of your life frightens you. This article will guide you through the process of purchasing a house in Singapore.
1. The Help of CPF
The first thought that comes to you when a suggestion of getting your first property in Singapore is the huge debt that you get yourself into. This seems normal to most people as it is a huge sum to deal with after all. However, do remember that you are allowed to use your CPF to make monthly payment for your property in Singapore and this might help lessen your burden. In addition, most down payment for your property in Singapore will be covered when you use your CPF to make payment.
If you are not willing to have your CPF deducted to make monthly payment for your property, you can opt for HDB loan if you are purchasing an HDB flat. The HDB loan allows it to cover up to 90% of the HDB flat price. The remaining 10% will then come from your CPF. 10% of the remaining HDB flat price coming from your CPF definitely sounds much better than having to pay monthly for your HDB by using your CPF.
2. Choose A House And Go For The Launch
Location plays an important role as well. You certainly do not want to spend 2 hours daily on commuting to work. Same goes to your choice for children’s school. Therefore, you should choose a condominium or apply for a BTO that is near to your workplace so you can save on transportation fares and also you will have that extra 15 minutes before you go to work.
Normally, HDB will post the upcoming launch on the HDB website. Do check from time to time so you do not miss out on anything. You will be able to check out the details such as the location available and types of flat. Other than the location and types of unit, the rest will have to wait until the next launch. In addition, checking out on all these details will allow you to shortlist the type of unit and location that you are interested in applying, as application is only opened for a week. You definitely do not want to make any hasty decision on such important thing.
3. Sales Launch – HDB Loan & Down Payment
If you meet the criteria of applying for a BTO flat, you can now move on to applying a HDB home loan. In order to be eligible for securing a HDB home loan, there are a few criteria you need to meet. First of all, you are planning to apply for a HDB flat. Secondly, you must be a citizen of Singapore and aged 21 years and above. Your total monthly income should also be lesser than $12,000 or $18,000 if you are applying for a HDB flat for extended families. In addition, you must not own or previously owned any properties that are private in the past 30 months prior to the application of HDB loan. You must not have more than a hawker or market stall or an industrial property or commercial property, unless you are working in the market or hawker stall yourself. The total loan amount that will be approved depends on your joint income when your flat is ready.
As a rule of thumb, buy within your means and only what you can afford as you do not want to fall into financial debt. For example, you should not buy a flat that costs more than $300,000 if your monthly income is $5,000. It is suggested that you do not buy a flat with a price that cost more that your gross combined salary of 5 years, although most people would say that their salaries would have increased by then, there is still a risk involved.
4. Schemes Available
As for the Additional Housing Grant (AHG), it is a scheme that aims to help Singaporeans with lower income to purchase their first flat with grant ranging from $5,000 to $40,000, subject to buyer’s income as well. To qualify for an AHG grant, your household income should not exceed $5,000 per month, for a period of 12 months before your application for the flat.
There are also other schemes available such as the Special Housing Grant (SHG) that you can check out on HDB website.
5. Wait Patiently For Your House To Be Ready
Once your house is ready, you will then need to start spending money on renovations. To prevent yourself from getting caught in the middle of wanting more but not having sufficient money for home renovation, start saving in advance and plan your budget wisely. This will definitely save yourself spending unceccessarily.
In a nutshell, buying a property in Singapore is not so of a nightmare if you plan ahead and do you budget wisely. Moreover, getting a property in Singapore is definitely going to worth your money, time and effort in the future. However, do your research first before getting buying a property in Singapore. If you are planning to get a BTO, you can read the step by step guide to buying your first BTO flat.