In Singapore, more than 90% of Singapore residents own their own homes. In a country with such high homeownership rate, it is of little surprise that property related discussions and questions are one of the key topics that people frequently talk about when it comes to personal finance.
Property ownership comes at a high cost, literally. With a small and dense population, it’s inevitable that land and building cost for properties in Singapore are going to be high. Hence, it’s important that you understand the basics of what you need to know before committing to a property purchase.
We have decided to compile relevant articles on DollarsAndSense.sg that we think are essential reading. We hope this helps make your journey towards becoming a property owner a little easier.
If you are entirely new to property, we recommend for you to read the articles in the links below in sequence, as they have been designed to educate you one step at a time. However, if there are specific areas that you want to find out more on, feel free to skip to the parts that are relevent to you.
# 1 Are You Buying For Homestay Or For Investing?
The first question is whether or not you are buying a property for your own stay, or for investment purposes. This question matters, as it ultimately determine the type of home size you need, the location you want and the flat types that you choose.
Your ideal home may not be a suitable investment property. Likewise, an ideal investment property may not be a suitable home that you want to live in. So you should always decide the intend behind your purchase.
Here are some useful articles that you can start off by reading.
#2 How Much Cash For Downpayment Do You Need?
Next, you need to know the downpayment required. The amount that you can afford for your downpayment ultimately determines your budget. How much cash you need for your downpayment is also decided by other factors, such as whether you are taking a HDB loan or a bank loan.
#3 Taking A Property Loan
After paying your downpayment, you will need to take a property loan in order to fund the remainder of your purchase. If you buy a HDB flat, you can choose from a HDB loan or a bank loan. If you are buying a private property, you will need to take a bank loan.
Why It Makes Sense To Always Take A HDB Loan With A Long Tenure?
#4 Other Costs Of Buying And Owning A Property
Aside from the purchase price of the property, there are other associated costs of owning a property that you can’t afford to ignore. These include agent cost, resale levy and of course, renovation cost.
#5 Applying For HDB Grants
If you don’t already know, there are grants available for Singaporeans to tap on when buying a HDB flat. You should find out what these grants are, and whether you qualify for them.
If you are interested to read up more about property, here are some additional editorial insights we think you may find interesting.
DollarsAndSense.sg aims to provide interesting, bite-sized and relevant financial articles.
Learn together with like-minded Singaporeans at the Personal Finance Discussion SG Facebook Group by discussing a range of personal finance topics.
If you have not done so, subscribe to our free e-newsletter to receive exclusive content not available anywhere else.