Showing posts with label Property. Show all posts
Showing posts with label Property. Show all posts

Tuesday, 18 September 2018


Buying your first property can be an intimidating experience. You browse through websites to look for properties such as apartments unit in City Plaza and new launched condominiums. You start reading many articles regarding the guide to getting a property. However, you are still  unsure on where to begin, after all, this is a big decision that involves a lot of money. This article will guide you through the important things that you need to know before getting a new launched condominium and it might help you to reduce the stress throughout the buying journey.

1.      1. Budget planning
First of all, you will need to set a budget when it comes to buying a property. Set a realistic budget and stick to it. Know what you can afford to prevent getting yourself into a huge debt. After all, buying a property involves a huge sum of money and you definitely do not want to end up getting being in debt.

Get an approval in principle (AIP) for a bank loan so you will have an idea of how much loan you will received when you apply for a bank loan after that. An AIP will allow you to know how much loan you are eligible and your monthly mortgage repayment.

You can also check how much fund you have in your CPF account to help in funding your home. You are allowed to use the savings in the Ordinary Account up to the Valuation Limit for your first property. However, if it is the second property, you will then need to set aside approximately $80,500, which is the Basic Retirement Sum before you are allowed to use the remaining savings in the Ordinary Account.

Do consider the down payment for the property that you buy, commonly 20% of the price of your property. You are able to pay the down payment by using cash of CPF that consists of 5% Option Fee and 15% of Exercise Fee, Other than that, you will also need to pay for the Buyer’s Stamp Duty (BSD) and the legal fees.

Certain home buyers will need to pay the Additional Buyer’s Stamp Duty (ABSD) on top of the BSD:


Singapore Citizen
1st property
2nd property
3rd property and above
Singapore Permanent Resident
1st property
2nd property and above


Let us say if the property is bought by both Singapore Permanent Citizen and Singapore Citizen, the ABSD rate will then be higher.

2.      2. Shop around
After you planned your budget, you can start looking around for condominiums that fall within your budget range. You could also engage with a property agent in guiding you with recommendation and purchase process. If you wish to save money,you could do it on your own by doing research and finding information from various property websites out there.

3.     3.  Visit showroom
Buyer will be able to visit the show flats prior to the launching of the condominium, usually around one to two weeks before launching date. However, the actual price for the condominium is not released yet at this point.

You can complete the Expression of Interest form along with a black check to the developer’s account if you are interested in the property. The blank cheque will include 5% booking fee of the property and when the prices for the condominium are revealed, the amount will then be filled in accordingly.

That being said, you will have to be cautious as it is risky to hand in a black cheque. Hence, you are required to double check on the name of the developer’s account.

The great thing about registering before the price is revealed is that you stand a chance to participate in the ballot system along with people who have also registered their interests. You will then be invited to book a unit when you get a call from your ballot number. However, if you do not wish to proceed, your empty cheque will be returned to you.

4.     4.  Book your desired condominium unit
On the launch day, you will then need to go to the show flat to submit the ballot number and wait for your number to be called to book your unit. Once booking is done, you will be provided with a set of Property Details Information (PDI) documents by the developer. The PDI contains the floor plans, offered items, rules and regulations, and other related information of your desired unit. You will need to read the documents thoroughly to make sure you are satisfied with the unit.

5.     5.  Finalise loan and hire a lawyer
After getting the Option in your hand, you then need to approach the bank for loan application for your newly launched condominium. After you get your loan application approved, the bank will issue you with a Letter of Offer with all the terms and conditions.

You will also need to hire a lawyer to assist you in purchasing and conveyancing messages. Although the bank that you engage with will recommend you a firm, you could always choose to hire a lawyer on your own. Be sure to look around for a lawyer that offers you the best rate.

6.      6. Sale and purchase Agreement
Normally, the developer will provide you with the Sales and Purchase Agreement within 2 weeks of giving you the Option. You then have 3 weeks time to sign the agreement and proceed with the Option. You will have to pay 15% of the exercise fee, which is the remainder of your down payment. The payment for the exercise fee is within 9 weeks from the day you get the Option or at the time of signing the Sales and Purchase agreement, whichever that comes latter. Do take note that you are also required to pay for the BSD or ABSD on the Sale and Purchase Agreement within the 2 weeks of signing.

7.      7. Payment
You will have to start paying after 6 months of dealing with the above 6 steps. Payments will be made every few months for uncomplete developments based on the milestones achieved in the construction. When the Temporary Occupation Permit is obtained, you will then need to pay the final 40% of your unit price.

8.      8. Keys collection
Lastly, it is the keys collection. You can start engaging with interior designer and plan for a house warming party with your family and friends.

In conclusion, the steps to getting a new launched condominium unit is not that tedious after all, provided you follow the guide and plan ahead to avoid going through the unnecessary issues. If you are interested in getting a HDB flat, you can understand more on the process of getting a HDB flat by reading step by step guide to buying your first BTO flat and guide to buying a new HDB flat.

Saturday, 7 April 2018


In the world of real estate investing, new bright stars emerge almost every few hours. However, even the brightest stars will one day burn out and fade away. What are we talking about? Burnout. It’s one thing to just rent a property out once and another thing altogether to do it concurrently and multiple times over and over. The positive experience of generating your first return can soon give way to the hectic stress and time it takes to properly manage your rental properties. So, how can you keep your star burning bright? Here’s a few tips and tricks for you to keep your optimism and sanity as a landlord!

More than money

While the prime motivator for your rental investments may be financial gains, finding the joy in other aspects of the activity should not be relegated to second place. Sometimes, when it’s all about the money, it will end up becoming a stress-fest of financial decisions. This can quickly lead to burnout when you’re only focused on the material aspects.

The solution: try to find some aspect of the process that you like. It may be meeting people; marketing your property during showings; cleaning or repairing the property with your own hands; being your own boss; or even the price of ownership. Think of the positive aspects of the rental business that you enjoy. Be excited about the prospect of a new house for sale in taiping, purchasing it, fixing it up, showing the product off, and renting it out. Know that you are making a big difference in the rental and housing market, however small your contribution may be.

Choose tenants carefully

In all honesty, most of the stress a landlord faces probably comes from issues with tenants. The quality of tenants typically correlates directly to a landlord’s stress levels and longevity. A good tenant will take care of your property for you, pay rent on time and make your renting effort an enjoyable one. A bad tenant will quickly make their problems yours. For example, late rent payments, damage to the property, and unnecessary conflicts. In the end, you might even have to resort to evictions. All this can put a damper on your enthusiasm towards your rental business and investments.

The solution: screen through prospective tenants thoroughly and wisely. Make sure you meet them a couple of times to get a grasp of their personality and character. Have a set of expectations for them from the moment you meet them. You would do well to choose tenants that you can maintain a healthy landlord-tenant relationship with.

Select properties wisely

It’s easy to get burnt out when your rental property is not generating any income. This defeats the whole purpose of choosing to invest in rental properties. After all, the only reason for rental property investment is to generate a stable and passive source of income.

If your rental property is not generating the amount of money you’d like to be making, you need to rethink the approach that you use to pick your rental properties. Rethink the basics of property selection: location and condition. For example, you wouldn’t want the extra stress of dealing with repairs and upkeep for an outdated and defective building. Neither would you want to buy a property in a place that has low demand and high supply.

The solution: choose prospective rental properties wisely. Know your target pool of tenants and try to cater towards their work and lifestyle. Also try to look for opportunities, for example, try to invest in an area where there is a constant and 
consistent demand for rental units. When you learn to choose properties more carefully and more wisely, you’ll put the pieces in place for you to make more money. If you’re making the amount of money you want, you’ll be less likely to experience the stress and pressure that leads to burnout.

Know when to disconnect

Being a landlord is a tough job. You might feel that you’re never truly off the clock. However, this doesn’t mean that you have to be available 24/7 to address the concerns of your tenants. Constantly working will make you feel overwhelmed and is a surefire way to make you less motivated and burnt out. Set aside some time to disconnect from your job. Perhaps you can devote your weekends as personal downtime, which means no work unless its an emergency. This allows your mind to focus on other things that you enjoy.

The solution: Work in a clause in your tenancy agreement with the stipulation that unless it is for emergencies, you can get back to your tenants in a reasonable amount of time. Direct your tenants to leave their concerns in the form of voicemail. You can then deal with the problem on your own time and your tenants will learn that they can’t expect you to pick up the phone for every minor little detail. Alternatively, you can require that all service requests from your tenant be in the form of writing, such as via email. This would serve both tenant and landlord well, as there would be a written record of the exchange. However, one caveat for this is that you need to make sure your tenants have your main phone number in order to reach you in case of emergencies.