Buying a home is one of the most crucial milestones in anyone’s life, especially when purchasing your first HDB resale flat. The buying process can seem challenging, but it can be a smooth and rewarding journey with guidance. Thus, to help first-time buyers, this blog will provide some tips, ensuring you make informed decisions and get the best deal on your resale HDB.
1. Do Your Research
Before jumping into the HDB resale market, make sure to conduct thorough research. Start the research by understanding the current price trends and how they fluctuate across different locations. You can also browse through websites like HDB’s official portal and property listing platforms that provide valuable data on recent transactions. This research can give you an idea of the fair market value for various types of flats and help you set realistic expectations and budget accordingly.
2. Understand the Eligibility Criteria
Next, you must ensure you meet the eligibility criteria set by HDB. For instance, buyers must be Singapore citizens or permanent residents and form a family nucleus, such as being married, planning to marry, or applying with parents or children. Additionally, be aware of the ethnic integration policy and the Singapore Permanent Resident (SPR) quota, which may affect your choice of resale flats in certain areas. You can learn about the detailed eligibility criteria on the official Housing and Development Board website.
3. Set a Realistic Budget
Once done with your research, the next step is to finalise your budget. Your budget should include more than just the HDB resale price. Consider additional costs such as the option fee, down payment, legal fees, stamp duty, and renovation expenses. Don’t forget to use the Central Provident Fund (CPF) savings that may help you receive a housing subsidy of up to $80,000 for purchasing your flat. Also, explore available grants for first-time buyers, such as the Enhanced CPF Housing Grant (EHG), to ease the financial burden.
4. Secure Financing Early
After deciding the budget, choose whether to apply for an HDB or bank loan to buy the resale flat. Each option has pros and cons, and understanding the differences will help you choose the best financing method. HDB loans offer a stable interest rate and a lower down payment, while bank loans might provide more flexibility in loan packages. Additionally, getting an in-principle approval (IPA) from your chosen lender before you search can simplify the buying process.
5. Engage a Property Agent
Although you can manage the HDB resale buying process, consulting a professional property agent can ease the process. An experienced agent has in-depth knowledge of the buying process and, hence, can assist you in finding suitable flats, handling negotiations, and managing the paperwork. However, make sure to choose an agent with a good track record and positive client reviews.
6. View Multiple Flats
When buying an HDB resale flat, it is important to take the time to view multiple flats to compare their conditions, layouts, and prices. Pay close attention to details such as the age of the flat, the condition of common areas, and the accessibility to amenities like schools, public transport, and supermarkets. Considering various options will give you a better understanding of what’s available within your budget and help you make a more intelligent decision.
7. Negotiate Wisely
Once you have finalised the property, don’t forget to negotiate. Negotiation is a critical part of the HDB resale flat buying process. This is the time to use your research on recent HDB resale prices and make a reasonable offer. Be prepared for challenges and know your maximum limit to avoid going overboard with your budget.
8. Get a Valuation and Inspection
Before finalising the purchase, HDB will conduct a valuation to determine the flat’s market value. Make sure to complete this step, as it will affect your loan amount and CPF usage. Meanwhile, consider hiring a professional to inspect the resale flat for any potential issues or necessary repairs to save yourself from unexpected expenses later on.
9. Prepare for the Resale Completion
Once your offer is accepted and all checks are done, it’s time to complete the transaction for the resale flat. This involves signing the lease agreement, paying the balance price, and submitting all required documents to HDB. Ensure all your paperwork is in order and you meet all deadlines to avoid delays.
10. Plan Your Move
Finally, this is the time to plan your move. For this, coordinate with the seller on the handover date and get approval for any necessary renovations or cleaning before moving in. This will ensure a smooth transition into your new home.
Get Ready to Successfully Navigate Your First HDB Resale Purchase
Getting through the HDB resale buying process can be challenging, but with thorough research, proper financial planning, and professional assistance, first-time buyers can make informed decisions. By following these tips, buyers can confidently buy HDB resale flats and secure their ideal home.
