Another simple idea that may come out is that of a bank loan. The good thing about a loan is that the maximum loan you should be granted is not only determined by your monthly income, but also by your combined monthly financial commitments. So, if your financial commitment is impressive, then you are in a good position to get a loan.
Before you make a trip to the Showflat, consider the following;
1. Acquiring your Housing loan
It stands as a very important requirement when planning to purchase a property. A loan approval-in-principal(AIP) is always necessary as, without it, you cannot be able to set the property purchasing budget. There is not a single person who likes to overspend. Therefore, with a Housing loan, the bank also determines the amount to lend for your purchase.
2. Understanding the ABSD (Additional Buyer Stamp Duty)
Having some knowledge about your ABSD bracket is crucial especially in today’s economy. This applies that for Singaporeans when purchasing your first condo, you are free from ABSD. Your second purchase gets a tax of 7% while your thirds get 10% tax.
3. Knowing your NPS ( Normal Progressive Payment Scheme)
Understanding the payment progressive flow helps you plan your finances when purchasing a condominum. Take into consideration that the NPS is the current standard payment scheme used in almost every new condominum purchase project.
4. Check your CPF usage for the property
The CPF is a compulsory saving plan for working Singaporeans and permanent employees to fund their retirement, housing needs, and healthcare. If its your first time buying, you can only use your entire Ordinary Account funds as your maximum CPF. This is the CPF rate when purchasing your first condominium applicable to all permanent workers.
5. Know how the Balloting Process works.
Before you make your first move for any showflat, do not ignore how the balloting process works. This gives you freedom as a buyer to make your decisions and feel the unit size and the price respectively. You are allowed some time ranging from one to two weeks to preview the showflat. You should ask yourself some questions like whether it fits your needs, how you should budget etc.
Before the given preview period, you also get a chance to register for a non-obligatory seat during the launching date. The seats are reversed on the first people to come, and the registration makes one eligible for purchase of units before the public launch.
Here are the documents you require when registering.
– A cheque addressed to the developer account
– Registrants NRIC copy.
– A filed and signed Interest form (EOI)
These documents are also refundable if you change your mind about buying the units on the launch date. If you have everything in check, you can now walk to the showflat with your head high and purchase the flat you like.