As property sentiment goes bullish, pundits say there’s no better time to enter the market. In addition to considering location, future resale value and the timing of your purchase, it is important to survey your needs, finance plans, and long-term objectives before making a commitment.
1. Property’s Background Check
“A good starting point is URA’s website, where you can search for the condo you’re interested in and have a look at the price a similar unit has sold for over the past three years.” — Mr Willie Ooi, 52, real estate agent, C&H Properties Pte Ltd
2. Don’t Rush Into Buying
“Most people buy under pressure or with a push from agents. It is important for buyers and sellers to know the market situation — past, current and future projections — to better facilitate their decision making. Get statistics to back up claims made by agents. A common mistake people make is emotional buying rather than rational buying, and doing enough research.” — Ms Tina Lee, division director, ERA Realty Network
3. Long-Term Planning
“Before I bought my first condo, I studied the market for two years. Long-term planning is important if you want to get the best deal — consider how long you intend to live there, your family members’ changing needs, and whether your district will be undergoing further development. It’s important to assess how large a loan to take — across the years, no more than 40 per cent of your monthly income should go into serving your loan.” — Mr Shu Hua Xi, 55, property investor with 23 years’ experience
4. Check Your Finances
“Figure out what you can’t do without and what are nice-to-haves. It’s important to work out if you are able to afford the monthly payments including all the extras. Don’t be afraid to ask questions and definitely shop around for the right apartment. I needed to educate myself on the financial and legal aspects of buying a property, how mortgages are structured and the different types of loans.” — Ms Clara Chua, consultant with NTUC LearningHub
5. Ask the Condo Developer for Information
Condo developers can provide you valuable and useful information. Be sure to check with them before shell out millions of dollars:
- The condominium’s scaled location plan, site plan, and unit floor plan
- Breakdown in strata area for strata-titled properties (e.g. area of bedroom, balcony, airconditioner ledge and void area)
- Conditions and restrictions imposed by the authorities
- Amendments to the Sale and Purchase Agreement
- Specifications of the building
6. Check Your Mortgage
- Rough equation: Total budgeted monthly repayment = [Total household income] - [fixed expenses eg. bills and taxes] - [family commitments eg. costs of raising a child, taking care of elderly.] - [amount set aside for savings.]
- Make calculations based on your age. If you’re in your 30s, you can roughly expect monthly repayments for the next 30 years. If you’re in your 50s, you can expect monthly repayments for the next 10 years
Also, work with your property agent to check out the other necessary payments and fees involved, such as your home loan, buyer’s stamp duty, Additional Buyer Stamp Duty (ABSD), legal fees, booking fees, and the breakdown of your down payment in cash and CPF.