Are you and your spouse planning to buy your first HDB home but yet you are quite clueless about how to go about his? Well, to start things off, you need consider these 6 things first before thinking about application.
First and foremost, you need to know whether you are eligible to buy a HDB flat. HDB has several schemes so it’s good to find out if you qualify under these schemes to buy a BTO or resale flat. Besides affecting your eligibility, some schemes also affect your ballot chances and qualification for grants.
Some of the criteria that determine your eligibility are age, family nucleus, ownership of properties and income ceiling.
You can fill up this form to assess your eligibility.
2) BTO or Resale
While most people go for the obvious option to buy a BTO flat, there are some couples that choose to buy a resale flat instead. There are pros & cons that comes with both types of flats, it’s up to your preference and also finance capability to support the loans and payments involved.
In an ideal situation, a couple will buy a 5-room flat without consideration. However in the real world, you need to take into account whether your combined income is going to help sustain buying the loans. Although there are grants you can take advantage of such as the AHG and SHG, you still need to pay a significant amount for down payment and other charges. And of course, you also don’t want to be burdened with paying off loans for too long.
A good gauge is to purchase a flat that does not cost more than 5 years of your combined gross salary, 7 years of gross salary for breadwinners. E.g with a combined gross monthly salary of $5000, you should not buy a flat that cost more than $300,000 (source).
4) Bank Loan vs HDB Loan
Location not only affects the price of your new home, but also the convenience it will bring you (or not) and the type of neighbourhood you’ll like to live in. Some couples like to use their working area as a gauge to determine commuting factor. However, do consider if you will still be working in the same location 10 years down the road. E.g say you work at Tuas now and staying in Jurong would be a good idea. But what if you get posted to a branch in Bukit Batok?
Rather, I would advise looking at how the location would affect your future family’s lifestyle. Are there schools nearby? Is it convenient to get around for necessities such has clinics, convenience stores etc.
6) Must-Haves vs Nice-To-Haves
Both of you will have certain expectation of your new home and neighbourhood. So it is wise to sit down and discuss. It’s almost impossible to get the best of all worlds so you have to weigh what is more important and what are some of the factors you can do without.
E.g. rich infrastructure & amenities vs size of house; quiet location vs inconvenient accessibility etc.
A flat is a long-term investment that will affect your finances in the long run. So make your considerations carefully before you submit your application.
*Featured image source: teoalida.com