5 reasons why buying private property is more affordable than you think

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CNA Lifestyle

5 reasons why buying private property is more affordable than you remember

Home ownership – even for private residential units – is surprisingly affordable to start-time buyers.

(Photo: 99.co)

01 Jun 2022 06:30AM (Updated: 04 Jul 2022 12:32AM)

Most Singaporeans overestimate how much they need to buy a property. Before you assume that a private property is unaffordable, you'll do well to understand which financial schemes work in you favour. Home buying – even for private residential units – is surprisingly affordable to get-go-time buyers.

1. MINIMUM CASH PAYMENT

(Photo: 99.co)

What is the down payment for a 1000000 dollar condo, y'all ask? The full downward payment is 25 per cent, of which 20 per cent can be paid using your CPF and the remaining 5 per cent has to be paid in cash – which works out to S$l,000. So if you offset saving now – setting aside Southward$833 a month, yous'll take the sum in 5 years.

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2. COOLING MEASURES

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Cooling measures primarily target multiple home buyers. Starting time-fourth dimension Singaporean abode owners are not subjected to the Additional Buyers Stamp Duty (ABSD) which makes private domicile ownership more accessible.

3. Easy QUALIFICATION FOR A Banking concern LOAN

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For banking company loans, you need only meet the Full Debt Servicing Ratio (TDSR), which caps your monthly repayment at 60 per cent of your monthly income.

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iv. EXECUTIVE CONDOS (ECs) ARE A GREAT Offset STEP TO PRIVATE Belongings

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ECs vest to HDB but for the first 10 years, thereafter they are privatised. But unlike individual properties, owners of ECs are eligible for CPF grants, which offsets some of the price, making them a smashing "entry level" property for commencement-time individual home buyers.

5. DEFERRED PAYMENT SCHEME (DPS)

(Photograph: 99.co)

For completed developments, you tin opt to pay with schemes such as DPS. According to the scheme, yous're required to pay 20 per cent upfront while the remaining 80 per cent volition merely be due in two years, interest-gratis.

The downwardly payment of 20 per cent is less than the usual down payment of 25 per cent. For a mass marketplace condo at South$1 1000000, this divergence of 5 per cent can mean a cash outlay that's S$l,000 less.

This story kickoff appeared on 99.co.

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Source: https://cnalifestyle.channelnewsasia.com/entertainment/buying-private-property-singapore-225741