Most property buyers think that the majority of the work in buying a property is to shortlist the property. However, even after you shortlist the property, there is a lot of work that needs to be done.
After you shortlist a property like a one room condo in Singapore, the real work begins. Today, we will share with you a few steps you need to undertake once you have shortlisted your favourite property to buy.
Table of Contents
1. Find out eligibility criteria:
Eligibility is a stringent criterion regarding who can and cannot buy a property. That is why you have to 1st and foremost go through these eligibility criteria and ensure that you are eligible to buy a property. Some of the requirements include:
- Individuals who are 21 or above can buy a property.
- You should at least have a 5% down payment when you first initiate the property transaction. It should be in cash.
- You should be able to pay stamp duty while buying the property.
- You should be able to pay the rest of 20% in cash within 8 weeks of booking the property.
- The maximum loan which you can opt for is 75%.
- There are a few more criteria that you need to abide by as well.
Only when you meet these criteria and other sets of rules enforced by the government of Singapore can you buy a one room condo in Singapore or any other property. If you do not meet these criteria, it doesn’t make sense to follow the rest of the steps.
2. Analyze the Cost:
Once you’re sure about your eligibility, it is time to understand the cost of the property you plan to buy. You have to ensure that you are not paying an inflated price for the property.
• Browse through listings of the same suburb:
You have to always browse through the listings of the properties located adjacent to you. That will give you a good idea regarding the prevailing rate of the property, and after that, you can get a valuation for the property you plan to buy.
• Take area into account:
You have to always look at the exact square footage of the condo you plan to buy. The cost of the condo will always be dependent on the area.
• Type of ownership:
You have to also figure out whether you’re buying a condo that is leasehold or freehold. Leasehold means that the property is yours for 99 years or 999 years after buying. Freehold is a lease for life.
Freehold properties are generally more expensive as compared to leaseholds. You have to keep this factor in mind while evaluating the cost of the property.
• Taxes and duties:
You have to also take into account the taxes and the duties you have to pay, like the stamp duty, which can be as high as 3%, depending on the valuation of your property. You have to consider the legal fees, which you might have to pay to a property lawyer as well.
Only when you consider all these factors can you better evaluate the cost of the property you are planning to buy. In case all this sounds confusing, you can simply hire an agency by visiting https://www.newcondo.com.sg/category/one-bedroom-condo/. This agency can do all the research for you and provide you with a list of condos according to your requirement.
3. Get the financing sorted:
Once you’re okay with the cost, now is the time to get the financing sorted. If you aren’t preapproved for the loan, you might have to submit all the documents to the bank at this stage. The approval process can take up to 3 to 4 weeks.
Only when you sort out the financing can you pay the initial 5% of the property developer to initiate the transaction.
4. Take help from a property lawyer:
While buying a condo in Singapore, it is always a good idea to hire a property lawyer right from the start.
The property lawyer will go through the purchase agreement; the case documents also help you with the survey of the property.
As you can see, there are a lot of steps involved while buying a condo in Singapore. Merely shortlisting the property is not good enough. You have to undertake all the steps to successfully execute the transaction and own a property in Singapore.
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