A detailed guideline for purchasing a resale flat in Singapore

1. A detailed guideline for purchasing a resale flat in Singapore If you want to purchase a house in Singapore, there is several options are available from those you need to select as per your requirements and budget. As public housing is much cheaper than the private housing built by the real estate developer, also both of these are available in the new launch and resale units. Now if you seek to avail the cheapest possible option then a resale HDB flat is the answer for you, which you can search by yourself or engage a property agent to aid in your search for a house for sale in Singapore. New launch property or resale unit: As for purchasing a new launch property you need to wait for the time period of Build to Order, which can be years, so in the time of purchasing you need to speculate your future home, and then you have to endure it before you finally get the keys to enter your new home. Here for purchasing a resale unit no such waiting time is applicable, so you can choose and purchase a suitable house in days. There are several differences between the new launch property and resale unit, which are discussed herein: Location: The new launch units are mostly located in non-mature estates, which will be populated in future with all the facilities required for living, while the resale units from all locations may be put up for sale, so you can choose your preferred location. Price: The new launch HDB flat come under a discounted or subsidized price, while the price of a resale unit can be negotiated down, as it is fixed by the owner and engaging a property agent will be much help in this matter, as they are having detailed study on existing property listing and their prices, so you will have the bargaining power by your side. Purchase procedure: For new launches sale launches are held periodically, and applicants need to apply directly to the Housing and Development Board for a flat. While the resale units are available in the open market for sale, which can be purchased easily without any hassle. Checkpoints for a resale unit: Now if you are having an economical budget then opting for an old property is a great idea, but there are certain checkpoints to follow before buying an old property in Singapore, as the property is used by some other so it will be naturally a subject of maintenance, also you need to check the eligibility for selling the HDB flat, as the owner of the HDB flat needs to meet the minimum occupation period, which is minimum of five years and the documents and outstanding (if any) needs to be clear, before they can put their HDB unit for sale. There are some other checkpoints for purchasing a resale unit, such as: The condition of the interior: For a resale property, the interior renovation cost is a major factor, which includes the distorted or lead wall paints, fermented wooden floor, rotten wood at windows and door frames etc. To repair all these is a sheer cost-effective factor, so if the interior of the old house is in such a condition, then this will affect

2. as a notable increment in your budget, which you need to consider before completion of your purchasing procedure. Maintenance requirements –in case the management council isn’t responsible: For an old or used property the renovation cost is higher, so in case the management council has given up the responsibilities regarding maintenance, then the buyer needs to compile more expenditure, to accommodate properly. Also, you need to check the maintenance fees for the maintenance of the pool, gym, clubhouse, and other amenities available in that apartment, which needs to be included in your budget as well. The remaining lease period of the property: As stated by the LTV (Loan to Value) limit, the maximum amount a bank can lend you for a second property is 55 percent of the total valuation or purchase price, whichever is lower. Now if the remaining lease period is too short, i.e. less than 60 years, the maximum loan percentage of the purchase price can drop to 50 percent or less than that. So the remaining lease period is a vital measure in case of taking out a mortgage from the bank, as the amount of down payment varies with the remaining lease period, hence the shorter lease period will affect the LTV limit and that will increase your expenditure or as a higher down payment, apart from the stump duties required for purchasing a property. The status of cable connectivity: Now a day’s internet availability is a vital concern for each and every individual, so in some old apartment, the cables of broadband might not be in a usable condition. So you need to set up the entire system, which will cost you as new and this is also required for electric and gas connectivity as well so you need to estimate according to the status of cable connectivity. Conclusion: As the resale HDB flats are the cheapest housing option in Singapore, so if the aforementioned points are cleared then you can go for the purchasing procedure, which is not at all hectic, as these are available in the open market for sale. Now if you are new or inexperienced regarding property market the property agents can help you to connect with the real estate owners and developers, also can give a clear idea about the location and price that will be helpful for you to find your ideal house for sale in Singapore.