As more home buyers are gearing towards purchasing new launches for own stay or investment, is it best to be well prepared in financial planning and familiar with the purchasing process.
If you’re new to home purchase, here we have put together the essential steps that would guide you to making your dream to reality.
Table of Contents:
1. Start your financial planning
2. Shortlist new launches and make appointments to visit showflat
3. Place the booking fee for your desired condo unit
4. Sign the Sales & Purchase Agreement
5. Make payment to complete your home purchase
6. Collect the home keys to your new condominium
How to Buy a New Launch Condominium?
Step 1: Start your financial planning
When comes to home purchasing, many are excited and make a visit to numerous showflats. As excited you can be, visiting showflat at the early stage is a common mistake. Many home buyers made numerous trips and later found out they wasted a lot of time, realising the condos price could not match their budget.
To be efficient in sourcing your new home, it will be prudent to find out your finances before making visit to showflats.
Firstly, check the maximum home loan based on your income, age with consideration of your commitments.
- Total Debt Servicing Ratio (TDSR) – The TDSR was first introduced in 2013 as part of property cooling measures. The objective is to prevent borrowers from over leverage with their loans and keeping their purchase within affordable range. The current TDSR is 55%, which the borrowers cannot use more than 55% of their gross monthly income to service their loan. This takes in consideration of your car loans, home loans and credit cards.
- Loan-to-Value (LTV) Ratio – For the first housing loan, the borrower can get up to 75% LTV ratio from a bank. While taking up second housing loan will reduced the loan amount to 45% and third housing loan at 35%.
For home purchasers who are using CPF for existing property, they are required to set aside half of the prevailing CPF Minimum Sum before they can use the excess amount in their Ordinary Account for their next property purchase.
To be on the safe side, it will be better to speak to a mortgage specialists and get an In-Principle Approval (IPA) for Home Loan. Hence, you can be confident and ready to book a unit anytime without hesitation before your desire unit is gone.
Step 2: Shortlist new launches and make appointments to visit showflat
Now you have know your finances which helps narrow down your options by looking whats available in the market that are within your affordability range. Before making a trip to any of the showflats, here’s what you should look out.
1. Location (amenities and accessibility)
2. Unit size
3. Condo Facilities
4. Layout type
5. Potential Capital Appreciation
6. Market Condition
8. Living Environment
9. Developer Credibility and Track Record
Once you’ve have identified and shortlisted your top choices, you can look out for high quality agents to assist in your purchase. Due to the COVID-19 pandemic, visiting the showflats require to make appointment in advanced. This is for social distancing as well as prevent overcrowding in the showflat.
Here you can set an appointment with one of the StarBuyCondo Real Estate Consultants.
We can assist you with $0 agent fee:
- Guided Showflat Tour
- Professional and unbiased advice
- Detail research and comparison between shortlisted developments
- Facilitate and simplify your buying process
Step 3: Place the booking fee for your desired condo unit