If you are thinking about buying real estate in Singapore, you are not alone. Whether you are relocating into the area or you have lived in Singapore your entire life, the rising cost of rental rates in Singapore is among the top reasons why many choose to buy rather than rent space. While it can be financially beneficial for you to purchase a property, it is important to carefully review a few points before you make your final decision about moving forward with your home search.
Can You Afford to Buy Property?
First, you need to think about your financial situation. To buy property in Singapore, you will need money for a down payment and closing costs. In addition, you will need to pay for any moving fees associated with relocating your belongings to your new home. Finally, you will need to consider how affordable your home loan payment needs to be. By spending time reviewing each of these important factors, you can more easily determine if you can afford to buy property in Singapore.
Will Your Housing Needs Change in the Near Future?
When you rent a space in Singapore, you can easily upgrade or downsize after your lease expires. You are not locked into the property for more than a few months or perhaps a year or two at the longest. When you purchase a home, you will need to take more considerable steps to relocate. For example, you would need to prepare your home to sell, list it for sale and wait for a buyer to make an offer. It is always possible to sell a home to upgrade or downsize as needed, but there is generally more time, effort and cost associated with this when you own your property. Because of this, you want to ensure that the home that you purchase will meet your current and future needs.
What Type of Home Do You Want to Buy?
A final factor to think about about is what type of home you want to purchase. First, think about if you want to purchase a new home or a re-sale home. Then, consider if you prefer a condo, a flat or even a single family home. Each will have its benefits and drawbacks. For example, a new development unit may have minimal repair costs in the first few years, but it is generally more expensive per square foot than a re-sale property will be.
Buying a new home in Singapore is a major and even life-changing step to take. The property that you choose to purchase may be owned by you for several years or even decades. It will impact your lifestyle, finances and overall comfort level. Because of this, you want to ensure that you are ready to make a purchase and that you make the best decision about which home to buy. You can work with a property agent and home loan specialist to learn more about the options for financing and available properties.