Practical advice for purchasing a property in Singapore . . .

1.   Three types of affordability to consider:
       a.) Cash

  Do you have the hard cash for the 20-30% downpayment?
  ie. shortfall between the valuation price and the purchase price

      b.) Mortgage

  How much are you willing to set aside each month to service the loan?

      c.) Loan

 Are you able to secure a 80% (70% for an investment property) loan on the valuation of the
 purchase price?
2.   Check out several banks on:
      - the documents and income level needed to assess your loan quantum.

      - the flexibility of the loan on repayment and penalties.

      - other value-added services provided (eg. preferential renovation loans, free fire insurance, waiver of
        stamp duties & etc.)

 
3.   After evaluating and hunting around, another few points to consider are:
      a.) Property appreciation

            Properties in areas where the surrounding infrastructure are yet to be fully developed have a higher
            potential for appreciation.

      b.) Layout

            Assess the effective livable areas of the apartment (a1200sq.ft. may include the balcony, air-
            conditioning ledge, planted boxes or corridor) as some parts of the house may be usable but not
            really livable.

      c.) Hidden cost

            Set aside 4-5% of the property price for legal fees, documentation charges, government stamp
            duties and some basic fire insurance. The financial commitment for the monthly maintenance,
            conservancy or carpark charges may add up to a substantial sum in a year too.

 

 

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