What Should First Time Home Buyers Know To Avoid Regrets
Buying your first home is a significant milestone and a major financial commitment. In Singapore's real estate market, where property prices can be high, it's essential for first-time home buyers to make well-informed decisions to avoid regrets later on. Here are key insights and tips that first-time home buyers in Singapore should know to navigate the process successfully.
1. Understand your budget and financing options
Establishing a reasonable budget is essential when you begin looking for a house. Consider your financial situation, including your income, savings, and existing debts. In Singapore, you'll typically need to make a down payment of 20% of the purchase price for a resale flat or 10% for a Build-to-Order (BTO). Explore financing options, including housing loans from banks or the Housing and Development Board (HDB) if you're buying a public housing flat.
You should also take a look at the various subsidies available. For example, there is the Enhanced CPF Housing Grant (Families) for first-timer families and couples, whereas the Proximity Housing Grant (Families) is suitable for multi-generational families and fiancé and fiancée about to get married.
2. Explore the different housing options
Singapore has a range of housing alternatives, including executive condos (ECs), landed properties, private condominiums, integrated developments, and public housing (HDB flats). Each type of housing comes with its own eligibility criteria, restrictions, and pricing. It's important to research and understand the pros and cons of each housing type to determine which best suits your needs and budget.
If you're specifically considering HDB flats, you need to check your eligibility based on citizenship, income, and family nucleus. Different types of flats, such as Build-To-Order (BTO), resale flats, and ECs, have specific eligibility criteria. Ensure you meet the requirements before applying.
3. Engage a knowledgeable property agent
A reliable and knowledgeable property agent can provide valuable guidance throughout the homebuying process. Look for agents like NeezaNizam who are well-versed in the local property market and have experience working with first-time buyers. We can help you find suitable properties, negotiate deals, and handle the paperwork.
4. Budget for additional costs
In addition to the property's purchase price, be prepared for additional costs such as stamp duty, legal fees, valuation fees, and agent commissions. These costs can add up, so it's essential to budget for them to avoid financial strain. Legal fees can easily set you back over $2,500, while valuation fees tend to range anywhere from $350 to $500.
5. Get a comprehensive home inspection
Before finalising the purchase, hire a professional home inspector to thoroughly inspect the property for any structural issues or defects. A comprehensive inspection can uncover hidden problems that might require costly repairs. Use the inspection report as leverage for negotiations with the seller.
6. Review the Sale and Purchase Agreement (SPA) carefully
Once you're ready to make an offer, review the Sale and Purchase Agreement (SPA) meticulously. We recommend seeking legal advice if needed to ensure that you understand all terms and conditions. It is also crucial to pay attention to important details such as the payment schedule, completion date, and any clauses related to defects or warranties.
Conclusion
Buying your first home requires careful planning and research to avoid regrets. In Singapore, buying a home is considered one of the major steps into adulthood, so it is understandable that many people may feel unsure about dedicating themselves to this costly financial commitment. In addition to the fact that there are many processes involved, buying your first home can be overwhelming.
As such, NeezaNizam, being the leading housing agent in Singapore, is here to make house buying as uncomplicated as possible. We have over 22 years of collective experience in many fields, such as market trends, property rules and regulations, and CPF subsidies, to name a few. Whether you are looking to purchase a new or upgrade from HDB to EC, you can reach out to us here for enquiries.
