Owning a home is one of the major goals to most people especially young couples. In most cases this tends to be a first time experience and thus it seems overwhelming. The fact that a home never comes cheap and one has to be confined within an area for at least 5 years further makes such a decision a difficult one. One has to consider all aspects of home purchase prior to sealing a deal otherwise a bad decision will have a huge effect for a long time. The Singapore real estate market has enjoyed an economic boom since 1965 and most investors have capitalized on this. If you are considering acquiring your first property within Singapore then you have to understand how the real estate market works. You should have sufficient knowledge about what you are getting into.
- Timing is Everything
Before you even begin to search for deals, one of the most important thing to do first is to ask yourself whether it is the right time to buy your home or not. Never give in to the temptation to rush into buying a home just because others are doing it. Forget about the pressure from peers or relatives urging you to buy now that mortgage rates are low or the fact that it is a buyer’s market at the moment.
Buy your home when you are certain it is time to be a homeowner and you intend to reside within an area for a minimum of 5 years. You should also be financially ready otherwise buying a home can be a disaster.
- Know what you Want
- When buying your first home you need to know exactly what you are looking for. Understand the kind of neighborhood you want, the house design and size you need, types of housing to start with, and the exact amount of money you can afford. Some may want to start with a HDB while others may want a resale condo or a new launch condo if affordability is not an hurdle. A home bought can never be replaced as easily as a car or a fridge, thus a wrong choice will plague you for years.
- If you intend to start a small family, or will stay single, then a small home will suffice. Those with the intent of raising a large family must consider a multi-family home. The kind of neighborhood is also a crucial factor to consider. Depending on your preferences you may opt for a neighborhood with various conveniences nearby. For instance, garages, grocery stores, malls, schools, health facilities, good jobs, and many others. Some people may even desire a place with low property taxes. Other considerations include; solar powered homes, expansive yard spaces, breathtaking sceneries, and many others.
- To set your priorities right, sit down and come up with a list of the things you desire in a home and its neighborhood so as to help narrow down your search. Using Siglap as an example of your shortlisted neighborhood, you may want to explore the existing resale developments or visit Seaside Residences showflat to decide if under construction project is your preference.
- Do your Home Work
- As a buyer there is no excuse for ignorance. You have to be well acquainted with your market and the options available. The massive Singaporean property market has a lot to offer and with sufficient research you can land on a good deal. Once you have listed your preferences it becomes so much easier to identify homes that fit your requirements. The advent of the WorldWideWeb has even made things so much easier. You can simply type Grandeur Park Residences showflat or what you want on your search engine and get dozens of results for free.
- Some of the things to evaluate while researching for your home include; pictures of the property, yard space, internal space and layout, potential price of the house, and various statistics about the area (crime rates, unemployment rates, school ratings, etc). Other important factors to consider while researching include; traffic conditions and affiliation to associations such as homeowners association.
- Once you have the information you need, pay a visit to the area so as to physically verify the information. During a visit be keen on all facts and try to speak to potential neighbors so as to get some extra information about the area. You should also check out the maintenance and construction history of the property.
- Financing your Home
- This is perhaps the most challenging part of home purchase. You have two choices when it comes to the purchase of your home; buy it in cash or take a loan. If you have the cash then you can pay for it outright. As for those who cannot buy it with cash, they have to get a down payment for the home. In most cases, sellers demand a 20% payment on the cost of the home as down payment.
- You may consider getting a mortgage or home loan when paying for your home. The lenders will likely finance your home if you have a high down payment. Your income will also affect your qualification for a mortgage. The general rule is that your mortgage payment should be ¼ of your take home income. Other factors to consider when seeking a home loan include; insurance and closing costs.
- You Need a Professional to Ease the Burden
Irrespective of your level of experience in buying homes, you can never do without a professional real estate agent. Every home buyer should hire a professional so as to ease the workload involved during a home purchase. A professional understands how to maneuver the crucial steps of home purchase and will ensure a prospective buyer gets an ideal choice. If you do not have any salesperson to start with, simply visit Clement Canopy showflat or your desired showflat for professional advice from a licensed real estate agent. As a matter of fact, most of them have vast knowledge about diverse areas and are well connected with other real estate agents. They are therefore in a better position of negotiating for a cheaper price when compared to the market price. Agents are also well acquainted with all legal aspects pertaining property purchase.
Always seek the services of a competent and reputed real estate agent. It is also sagacious to meet with a number of them before settling on one.
Property ownership for first timers should never be a daunting experience if you understand what you are doing. Know exactly what you want, do your research well, and work hand-in-hand with a competent real estate agent. If you follow these simple steps you will never make a bad decision on your first purchase.