Plan Before You Buy
Setting short term goals for long term targets. Plan for something that you can afford and make some compromises on the lifestyle Β for a sound financial start.
Setting a budget
- It is important to set a budget.
- Do an Approval-In-Principle (AIP) from banks to understand how much you can borrow before starting to look for a house. The loan amount will be limited by your income earning capacity, assets and existing debts, credit card limits, study loans and car loans etc.
- Set aside another sum of cash for mortgage/house insurance, stamp duty, legal fees, renovations and maintenance fees etc.
- Set aside 6 months of income for emergency.
- Β Important 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.
Focus on your preferred area
- Near to work place
- Near to parents house so that your parents can take care of the babies easily
- Near to public transportation (MRT, LRT and buses)
- Lifestyle
- Favourite District
Leave A Comment