Making the decision to purchase a new home is a major milestone in life. As such, it is one of those decisions that require much thought and consideration.
Here are five factors to consider before finally committing to buying your dream home.
Your monthly income
Getting a loan to finance a new home depends a lot on your monthly income. Whether you’re financing through your CPF or through a bank loan, your income will determine the maximum amount that you can borrow. The higher your salary, the greater the value of a housing loan you can get. You may have to downgrade from your dream home to a more affordable one, like a BTO flat, if your income cannot let you buy the more expensive homes.
Your cash on hand
Many times, you will have to shell out cash for the down payment of your new home. Consider how much cash you have to spare, and if it’s enough to cover the down payment. If you lack the cash, you can visit a licensed money lender in SG for a boost.
Proximity to facilities
Consider if your new home is close to shopping centres, hospitals, schools, and your workplace. While it’s always a good idea to live near your place of work, the cost may be too high, especially if you’re looking into areas near the CBD.
Choosing a location slightly away from the CBD will cost much less in the long run. It may not be as close to your workplace as you would like, but you don’t have to break the bank buying that home.
Space for children
Also consider if you are planning to have children in the future. Your children will require extra space, and eventually they would want their own rooms. The home you plan to buy must be able to accommodate these future needs of your children.
Also, it pays to find a home within reach of schools. This way, your children can walk or cycle to school, saving a lot of money on transportation expenses.
Resale value
Statistics have shown that most Singaporeans purchase more than one home in their lifetimes. Let’s say you decide to start with a smaller home – perhaps a 2-bedroom HDB flat. Later on, your family grows and you want a bigger space in a more upscale location, so you decide to purchase an EC. Selling your old HDB flat will help a lot in getting the funds you need to buy that EC.
Even if you don’t think you will sell your home, it pays to consider its resale value. You’ll never know what circumstances you will encounter in life that may change your mind about selling your home.
Conclusion
Buying a new home is always a huge decision to make. It’s not just about saving up for it and having the money to afford it. You also need to consider where it’s located, how spacious it is, and how much it can sell for in the future. With these in mind, you can make the best decision in buying your new home.
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