Moneylender Singapore is here to help people make a big decision when it comes to managing their money. Making decisions when it comes to finances is hard for most people. If you are one of the people who is having trouble thinking about how to improve your financial management activities, you should step up your game and make the necessary changes.
The most logical choice of most Singaporeans is to buy a BTO or Build-to-Order Flat. This is basically one of the most affordable options that are available on the market today. Although this is what most Singaporeans would do, purchasing a property is not easy since it needs thorough planning and forecasting.
Purchasing a property in Singapore is somewhat expensive because of the scarcity of land. You should plan carefully and study each scenario so that you will have multiple options for your courses of actions. Ask yourself, what are you looking for in a property and how can you maximize your investment.
How many rooms do you need or are you planning to get married and start a family? Do you prefer to have a business residence wherein you do your work at home? These are some of the questions that you need to take in consideration before doing anything foolish and buying a property outright.
There are many factors to consider and these play a big part in your decision making. There are some people who are tempted to purchase the largest unit in the flat but you should first look at your situation if you really need that amount of space. Visualize yourself living in that unit and think if it is really necessary. It is more practical to buy a flat that has the size that you need and this can save you lots of money in the process. Do not put all your eggs in one basket and use your money for other investments.
What to look for in a property
When it comes to purchasing property, location is very important. Moneylender Singapore can help you find the house that you are dreaming of. If you are really interested in buying a house, one should learn about personal proximity and property proximity. If you are employed or if you have a business, see to it that your residence should be near your workplace. You should also consider your family members in making decisions. Get a property that is near the school of your children and it is near grocery stores.
There are also many considerations when thinking about property proximity. Is the place near transport hubs just like MRT stations, taxi stands, and bus stations? Property proximity also affects the price of a property. The more facilities, establishments, and amenities that are nearby the property that you want to purchase, the more expensive it would be.
Importance of getting grants
It is a fact that getting grants from Housing Development Board (HDB) is essential in purchasing a BTO. It will drastically lower your purchase price and it will save you thousands of dollars. However, there are certain eligibility issues that you should be aware of when applying for a grant and it depends on your financial capabilities and what type of property you are going to get.
If you are interested in getting one, you should carefully study each available grant and it will be best if you get advice from family or friends. There are also financial experts such as Moneylender Singapore that you can get advice from so that you will not make a mistake on your property purchases.
Once you have chosen the right property, you need to decide whether to get a bank loan or an HBD loan. Compare each loan and take not of the lock-in period. It is also important to compute the interest rate of each loan and whether if you have the option for partial capital repayment. Transparency is also important since there are certain fees and charges that are involved in getting a loan.
You should also be aware of the valuation fees and lawyer professional fees since these are also included when you get a loan. If getting a bank loan is your primary option, it is best to seek advice from a bank representative to see the appropriate package that suits your needs. It is important to take into consideration your MSR and TDSR.
When making a loan, you should also take into consideration the Mortgage Servicing Ratio (MSR). This is necessary to calculate your monthly repayment and this should not exceed 30 percent of your gross income. It is also necessary to compute your TDSR or Total Debt Servicing Ratio. This will ensure that you can pay all your obligations, including personal loans, credit cards, and car loans.
Forecasting your financial capabilities is also equally important since it can make or break your bank account and Moneylender Singapore is an expert in these areas. While Build-to-Order properties are probably the most affordable option available today, it can still cost you a fortune. You should be mindful of your cash flow, career progression, and salary grade. It is also advisable to anticipate any economic recession most especially in the industry that you are involved in.
Assess yourself if you are engaged in increasing your personal savings and how do you see your investments in the years to come. Do not put yourself in a situation wherein your home will become a liability rather than a necessity.
Conclusion
Once you have purchased the property that you are eyeing for and you want to move in immediately, there are still some things that you want to take in consideration. Well, most of the time BTO flats are properties that have ready-to-move-in conditions, but there are some people who still want to make their house according to their preference. If you are one of these people, you should think twice or thrice before making a move since renovations are costly.
Purchasing a property is a big deal and it should not be taken too lightly since money is involved. Getting caught up in your emotions and excitement will get the best of you. It is very important to take everything into consideration before making any move. Proper planning and research is your primary tool in making the right decisions. Also, it is also highly recommended that you seek advice from Moneylender Singapore.
