3 Mistakes To Be Avoided When Buying A Home In Singapore
So you are deciding to buy a home. You have done the preparation work (such as setting aside the deposit, selecting the possible location(s), found a reliable real estate property agent), and you are now ready to go house hunting. But wait! There are a few deadly mistakes that you need to avoid to ensure that you don’t end up worse off than before your purchase. These mistakes are common enough that it is painfully sad when I encounter others who have made such mistakes. I help home buyers avoid these mistakes by making sure they consider them before we proceed to look for their dream home. Let me share with you the top 3 deadly mistakes from my own personal experience of dealing with property buyers and homeowners over the years.
Wanting It All NOW without learning to compromise between needs and wants.
It is tempting to want a dream home in a prime location with all the furnishings and best fittings. The danger is over borrowing and getting into more debt that you can comfortably repay. A mortgage that you struggle to repay is a deadly trap. Therefore it is crucial to consider what you really need and what you can live without. For example, if you are a couple without children at the moment, could you live without a third bedroom? On the other hand, if you have a young family, would you consider moving to a location that has more space but further from city convenience? It is important to make considerations until you arrive at a mortgage that you are comfortable repaying month-after-month. Doing this will mean compromising between needs and wants on certain things but you will be better off making sacrifices now rather than struggling to make repayments later or finding that you have no extra cash to take care of repairs or renovations. It is important to realize that the simplest of homes can be beautiful with a few personal touches. Thus, your aim should be to buy a home that you can comfortably afford to repay over the long term with the goal of being debt free in the shortest possible time. One such home, you can prefer to buy in Singapore is Dairy Farm Residences Condo.
Having an Incomplete Budget that does not account for hidden costs.
You probably already have set a budget for the type of home you need. However, be sure you do not miss out on including hidden costs into your budget. These include mortgage (and building) insurance, stamp duty, legal (or solicitor) fees, valuation reports, furnishings and fittings, renovations, repairs and maintenance. Be aware that even high salary earners can and do lose their jobs, so do not use this factor alone to determine the size of your mortgage. It is also important to take into account future possible lifestyle changes such as periods without work, or moving from a double to a single income household with the arrival of a new family member. Taking all these factors into consideration will help you arrive at a more comprehensive budget to work with when calculating the mortgage repayments that you can comfortably afford.
Buying your home based on price alone.
You will be surprised how many people settle on a home because of the price alone. Even though, you should buy a home based on a price that matches your budget (with hidden costs accounted for), you should never forget to consider important residential factors that apply to your home and the location it is situated in. For example, is there a sense of community spirit? Are the recreational grounds and parks well maintained? Is the local town council active in improving public facilities such as libraries, retail areas, and street landscaping? Are there lots of road works and construction (and do they complete on time)? Is the area safe or is there a subversive growing feeling of discontent expressed by vandalism, thievery and excessive drinking in the area? Paying slightly more for a home where you will feel safe and happy is far more desirable than moving into an oppressive area. (Find a reliable real estate property agent who can help you find something suitable and yet within your budget range). This is important for the sake of the house maintaining its value should you need to sell in a difficult market and is especially true if you intend to live in the home for several years. Buying cheaply when you do not like the home area is going to make you miserable in the long run and negate any of the benefits you had hoped for in savings. So consider crucial residential factors before you make the purchase based on price alone.