Hi,
Buying a home is not easy but it is a happy thing to happen in life.
Here are some of the things you should take note of:
1) Check your available resources:
(a) CPF OA: check how much you have and how much you plan for this purchase
(b) Grants: You shall be entitled to a $25K single grant. If you plan to stay within 4km of your parent, you can get another $10k proximity grant. Do consider whether you need this before applying.
(c) Cash: How much cash on hand and whether this is sufficient in this purchase.
2) Check the current market situation:
There are various sales platforms that you can find a property on sales:
propertyguru.com.sg
99.co
edgeprop.sg
SRX.com.sg
iproperty.com.sg
See the type of flat available and the price listing to understand the current market rate of various types in the different estates.
Different level, views, direction, conditions, etc affects the seller expectation. This can be negotiated.
3) Cost: $400,000, HDB loan: (2.6%)
Downpayment: 10% (CPF and/or grant) = $40k
Max. Loan-To-Value: 90% = $360k (household income ~ $5,500/mth), assuming able to take 25 loan tenure, assume you are at most 40 years old or less than. The loan amount will reduce if you are older, as this affects your loan tenure.
Buyer Stamp duty (~3%) = $6,600 (CPF if sufficient)
Legal fee (HDB): $797 (CPF if sufficient)
Mortgage stamp duty: $500 (CPF if sufficient)
Estimate Cash: $6k (including $5k option deposit + exercising fee, and miscellaneous)
Once you understand the current market price adjust your expectation to find your ideal home.
4) COV:
Beware of current market situation that some seller is asking for COV. Negotiate to ensure it is something you can afford.
Do note that the OTP deposit & exercise fee is $5,000 in general. But there is variation as follow:
OTP Depost is $1~$1,000
OTP exercise fee is $1~$4,000
Do your math and negotiate so as it matches your situation.
Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at
90110636
, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer
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