Buying your first HDB flat brings a lot of excitement. You surely want to have the best HDB flat out there that suits your budget. But wait! This process can be quite stressful. There is a wide range of factors that need to be assessed before making the final move. This article will highlight those key aspects that you must keep into consideration before buying your first HDB flat.
Location Comes First
Location holds the prime importance among all the factors. Understand your needs first and then find the location that meets your needs within your defined budget. For example, if you need public transport daily, then you must opt for locations that are somewhere near bus stops, expressway, or other transport facilities. Moreover, if you are someone who is migrating from an area where a wide range of amenities were available to you, then you must look for locations where facilities like hospitals, schools, shops, markets, and malls are available.
Check Available Grants
There are chances that you can acquire good grants from government if you are buying a HDB flat. Individuals buying BTOs are limited to acquire Enhanced Housing Grant (EHG) only. But this is not the case with resale flats. There are grants like Family Grant and proximity Grant which you can avail through HDB flats.
If you are planning to live with your parents in your new flat, then you can avail $30,000 as a grant. Moreover, you can also acquire Proximity Grant of $20,000 if you buy your new HDB flat within 4km distance of your parent’s residence.
Then there is Family Grant which allows HDB flat owners to avail $50,000 for 2-4 room resale and $40,000 for 5 room or bigger.
This is a good opportunity to ponder upon your eligibility for these grants before you buy your HDB flat.
Make Your Home Financing Decision Wisely
Singaporeans have to go for financing options to buy their flats. You have to choose between a HDB loan or a bank loan to make your purchase. Which option is right for you? Well, there is no definite answer to such a question. Here is a quick sneak peek into these two home financing options that you can avail:
With an interest rate of 2.6%, HDB loan is a good option for HDB flat owners. HDB loan has a higher loan-to-value (LTV) limit of 90%. You can also pay off this type of loan sooner without paying any penalty fee. You must go through all the eligibility criteria before applying for this loan. The major eligibility requirement for HDB loan is that one of the buyers must be a Singaporean citizen.
Bank loan is a good option for those who are looking for a flexible home financing option with lesser eligibility requirements. Bank loans offer a more competitive interest rate compared to HDB loans. You can expect an interest rate of up to 1.5% in bank loans.
Always Assess Current Condition of Flat
Many people plan to conduct a proper renovation of the flat after buying it. Such customizations look good and appealing. But they can bring a lot of burden to your finances. Take your time to go through the entire flat and assess all the ins and outs of the place before finalizing your deal. Check size of units, light arrangements, bathroom, kitchen, floor, walls, home fixtures, doors, and all such pivotal elements of the HDB flat. Buying a HDB flat with a good condition can save you from hefty maintenance work in the future.