Mistakes to avoid when buying real estate in Singapore
Investing into real estate market and property is a big decision and potentially risky financial move, especially if you are not educated enough. At the top of it, Singaporean real estate market may be particularly complex and specific in some aspects that require professional assistance and thorough knowing of the trading rules dominating here. Singapore is attractive for foreign investors; it offers a wide range of different real estate types, residential property as well as commercial and industrial and the prices fluctuate according to the local and global economy. To avoid some common and potentially costly mistakes, especially if you are a layman and first-time buyer, read these instructions you might find useful.
Be clear with your budget limitations
A thorough investigation of all the possible expenses included into the total price is the only way to prevent bankruptcy or being short and running into debts when purchasing a desired real estate property. The overall required money includes much more than just a mortgage. Do not forget to include taxes, interest, stamp duty fees, insurance and some other costs that figure as well. Also, check your mortgage loan terms with your bank before you run into purchasing, just to make sure you got yourself covered on all sides. Also, don’t go purchasing a real estate in Singapore, before you get a pre-approval for a mortgage. So-called AIP (Approval In Principle) will inform you about the total loan you are eligible for.
Do Not do it yourself
Don’t be bold and overestimate your skills and knowledge, because avoiding professional help and assistant might cost you a lot. Hire a trusted real estate expert or at least consult real estate company and their lawyers and realtors to give you professional, experienced directions and advice or to lead you smoothly through the whole process of market research and transaction. Aside from the fact that property agent will help you find the real estate that suits your budget and needs, he will give you expert’s tips on when to buy, how to decrease the total price and how to ensure the legal aspects of the transaction.
Always inspect the real estate
Purchasing a real estate without thorough inspection before signing any contract is irresponsible and risky, even if you are a foreign investor. When visiting and inspecting the pinned real estate, the best is to take some construction engineers with you to check for installations, air conditions, pipes, heating settings and other potential risks and drawbacks.
Consider time limitations, but think in long terms
When conducting preliminary research of real estate market in Singapore, keep in mind two things. Prices of real estates in Singapore sometimes fluctuate significantly within just a few months. Also, consider the fact that the whole transaction procedure usually takes about twelve weeks to complete it. When it comes to these features, you need to have time limitations and timeline in mind. On the other hand, you should thing in long-terms when planning potential future selling of that property, renting it or reconstructing. Calculate rental yields and study price predictions, as well as some Singapore’s real estate laws to get the clear picture of what the true market value of your real estate will be in the future.