Things to Consider Before Purchasing a Home
Purchasing a home is something that most people likely to make. However, purchasing a property is not an easy task especially when it comes to budget. Planning your budget first before buying a home can help you in determining which type of property you will get for your living.
Aside from considering your budget for buying a home, there are other factors you need to consider to help you in deciding what type of home you will choose. Such factors are additional facilities and commuting plans which may include neighbourhood schools especially when you have your own children and certain amenities like sports center and shopping malls.
Here are things you should know when purchasing a home:
- Financing your home.
It is recommended that before you apply for a home loan, you decide first what type of home property you want to make sure that it is within your budget. Also, if you prefer to have a real estate agent, check first their fees payable in order for you to prepare and plan your overall budget before getting your loan to bank. Getting a loan to finance your home is good idea, but remember that banks will also charge an administrative fee for mortgage processing and an extra fee also for valuing your property. So, when applying for loan, make sure to understand and know first the condition to avoid any problem at the end of the agreement. Singaporeans are usually allowed to borrow money up to eighty per cent of their property value. In other cases, you can also use Central Provident Fund to finance your home, but you should familiarize yourself first on the use of this fund.
- Buying an uncompleted private residential property.
If you own a HDB in Singapore, make sure to complete your minimum occupation period, because you are not allowed to buy a private property in Singapore until you complete this. Remember, when you are planning to get a condominium in Singapore, make sure to know first the conditions and other important processes to avoid any problem.
- Option to purchase.
If you want to buy a property, it is required that you must obtain an option to purchase from the home seller. This option is a right to property and acts as a home reservation for you to buy a property. If you have an option to purchase from the seller of the house, you are required to give your deposit fee as your fee down payment for the house. However, your payment is depending on the condition given by the seller to you.
If you get the type of house you want for, you are now required in completing its payment. However, your payment can have an additional payment also, so be ready for it. In addition, if you are non-Singaporean citizen who wants to buy property, your taxes to be paid is different from that for Singaporean citizen.
- Buying home through private treaty.
If you want to buy a home, it is good to engage the services of solicitor. You can allow your solicitor to help you complete the purchase of your home, he or she can coordinate to financing institutions to finance your home.
Considering the information above can help you lessen your burden in purchasing a home.