So family and friends have been telling you that you should buy your first new house, right? As you busy weighing the pros and cons of the idea, this article would try to help you understand what it takes to buy a new home.
1. Are you prepared to stay put for at least 3 years at your new home? If you are not ready to stay in your newly purchased property for minimum of 3years, perhaps you have to put off this idea now. The reason is the kind of investment with property purchase and the associated fees charged on both buy/sell transaction would simply makes it impossible. You will end up lose money no matter it is a rising or falling market (here you end up losing even more money as your property will have depreciated in price).
2. Brushing up your credit report. Unless you are filthy rich, you are not going to pay cash for your new home. The conventional source of fund would be lenders like bank. To make sure your application for a home mortgage goes as trouble free as possible, it is important your credit rating (publicly available) looks healthy. The trick is to obtain this rating report yourself before hand and when it signals problems, correct and fix them before you make appointment with the banks.
3. Find suitable home loan 80 percent of the purchased price is the average loan amount banks are willing to disburse, subject to qualification. But you can go to the online calculator to figure out more about the maximum loan amount the bank is willing to approve you. The calculator would require you to input information like your income, debts, and expenses to work out a loan comfortable to you, or to thee bank.
4. Down payment requirement As a rule of thumb, banks expect 20 percent down payment from home buyers. If you have problem putting up this amount, your only option is to discuss your requirement with those offering sub-prime loan. This is done on a case to case basis and there is also pre-qualification requirement.
5. Buy into hot location with good schools If possible find a site where there are a number of popular schools. Reason is school districts are a top consideration for buyers who have school going children. When you want to sell your property, you can ask for a premium on top of a fair evaluation price.
6. Can you find the new home yourself or do you need professional help? While Internet has touched on almost all aspects of human activities, home buyer/seller still prefer physical interactions. Do you have time to shop around the properties that are put on the market or do you engage the help of a professional real estate agent? Sometimes it is worthwhile to get professional help as the agent is familiar with the processes and when he represent your interest, you find yourself don’t have to worry about a lot of hassles.
Answers all of the above truthfully and if these answers still point to a new house purchase, get ready for some intensive homework. Once you chanced upon property that you like, you would have to start gathering background information. For example the kind of prices transacted in the past months for similar housing type or neighbourhood would be helpful. This will prepare you on the likely target price the seller is willing to let go so you can negotiate effectively to win your property.
Learn more about Singapore Property. Stop by our site where you can find out all about Singapore Property Elite and what it can do for you.
categories: real estate,property,properties,business,investment,management,loan,finance,Property Management,Property Market,buy,sell,rent,invest
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