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Buying a property is a major decision for many of us. Be it a HDB or a private property, it will be good if we are equipped with some basic knowledge. A wrong move may land us into financial or legal tangle. Buying HDB flats involves more complexity than buying private properties. If you are buying a HDB flat, you may want to engage a professional real estate agent who is experienced enough to help you. With more than 80% of Singaporeans staying in HDB flats, this article will be mainly meant for HDB flat buyers.
Requirements and Factors to Consider
Before hunting around for your dream house, you may want to think about some basic factors such as property type, location, size. This can save you valuable time so that you do not need to travel around the whole Singapore Island for a start.
(a) Eligibility: For Singaporeans, you can buy a HDB flat under one of the HDB eligibility schemes. Some schemes allow foreigners to purchase HDB flats by forming a proper family nucleus. You may also want to check whether you are eligible for CPF housing grant.
(b) Budget: A typical 3 room HDB about (100k-200k), 4 rooms HDB about (200k-300k), private properties (> 300k). It may be good to have a financial planner to help you too.
(c) Location: Distance to your workplace, relatives, children’s schools are some of the important factors to consider
(d) Property type: You may want to consider the property type depending on your family size and budget available.
(e) Facilities and Amenities: Are the schools, MRT station, market and shopping centre within walking distance?
Searching for your ideal property
Well, you may have done some homework and is ready to hunt for a property now. There are many places you can find property listings. Straits times classified provide a major source of listing and most property listing can be found on Saturday. You may start arranging for viewing appointments with your agent. Here, we shall highlight that it is important for you to be punctual for every viewing. During your viewing, there are factors you may want to consider:
a) Eligibility of owner to sell – Check for Minimum Occupation Period, bankruptcy issue etc
b) Ethic proportion – Some HDB blocks are not meant for sale to some races.
c) The exact facing of the unit - A responsible agent will be able to tell you the exact facing. Most often he/she will be carrying a compass.
d) Privacy issue – Is the house a corner/corridor unit. Low floor or high floor
e) Afternoon sun – Will it be hot during the afternoon at 3pm. You do not want to stay in an oven for the next 20 years!
f) Renovation – How much renovation has been done? Do you need to spend a great deal on renovation after moving in?
Making offer
After several viewing, you may have short listed some suitable units for consideration. With effect from April 1, all HDB flats are required to have valuation done by HDB-approved valuation experts. This brings good news to buyers since valuations have dropped across the board compared to previous months. The new regulation has also made things much simpler, providing a guideline for buyers to offer prices close to valuation price.
Completing the sale
Upon confirmation to purchase a particular unit, you will be required to place a deposit not exceeding $5000 for HDB flats. Buyers also need to exercise the option within 14 days, failing to do so will cause your deposit to be forfeited. The deposit for private properties is usually 1% of the purchase price. If you have engaged a property agent, a commission of 1%, recommended by Institute of Estate Agent (IEA) of purchase price will be paid to the property agent. |
