Safe property buying process

SMS: +65 9782 8606
http://www.singaporehomeloan.net Home Loans

loans@propertybuyer.com.sg Commercial Loans

Buying a property in Singapore Safely

www.PropertyBuyer.com.sg/mortgage

Not just Cheap But what fits !

SMS: +65 9782 8606


Why are you buying a residential property?

• Are you buying for investment or residential use?

• Buying for residential use and investment has different
considerations.

• Contact Property Buyer Mortgage Consultants to know more.


SMS: +65 9782 8606


Considerations for buying a residential property

• Work out a budget and affordability
• Select your location
• Decide on suitable housing types and size
• Decide on whether you would like Freehold or 99 years
properties
• Decide on traffic connectivity
• Check for major road lines
• Check for amenities such as schools and supermarkets


SMS: +65 9782 8606


Sourcing your property

• Go to www.propertybuyer.com.sg search engine or any
property listings portals to identify properties
• Search as wide as possible
• Make a list of property in the shortlisted spreadsheet
about asking price, agent’s phone number and address.
• If you do not know the unit number and size, because agent
don’t want to reveal, then multiple listings could refer to 1 single
property.
• Make sure to take the time to view the property.


SMS: +65 9782 8606


Property Buying Research – Cheap?

• Properties may sound cheap, often there are reasons,
such as: -
• Lengthy Probate cases (transfer of ownership due to death)
• Divorce cases
• Unnatural deaths
• Bankruptcy
• Property affected by reclamation or forced acquisition


SMS: +65 9782 8606


Property Buying Research – Benchmark tests

• Using Caveats from URA, conduct price checks.
• Check against similar properties and variances in prices
• Check against the relative price differences across different
regions.
• Note: Property agents often mark up property prices by 10 to 20%
in classifieds and advertisements so as to allow room for
negotiation. So you have to check actual transacted prices instead.
• Check property vacancy rates and rental returns.


SMS: +65 9782 8606


Property Buying Research – Future Trend

•If you are spending $1m to $2m to buy a property, you may want to
consider spending some money to buy a subscription to URA’s Realis.
URA’s realis provides comprehensive data on: -
• Supply in the pipeline break-down by projects and location
• Vacancy rates of property developments (This helps to
determine rental demand)
•Look into Demographic data at Singstat to understand the net
immigration rate.
•Investigate URA master plan to understand the trends and
developments.


SMS: +65 9782 8606


Property Buying Research – History price

•Look into previous year’s caveats to understand the relative price
benchmarks and movements in property prices across different
regions in Singapore.
•Determine whether the current price is high on a historical level.
•Determine whether these price rises have come together with better
attributes such as a better environment or amenities or is it purely the
same property being sold for more expensive rate.


SMS: +65 9782 8606


Property Buying Research – Others

•Look at the current macro economic trend in Singapore and
worldwide. Make your own assessment.
•Look at vacancy rate of properties.
•Look at yield of properties. (Is it cheaper to rent or to buy?)
• http://propertybuyer.com.sg/articles/singapore-property-investor-buye
•Look at interest rate costs and understand interest rate trends such
as that of Sibor or SOR.


SMS: +65 9782 8606


Property Buying Process

•Communicate your offer price to seller’s agent.
•As property agents cannot represent both sides, so you are better
equipped with a buyer agent, however Buyer agent may not be able to
act in your interest if they are not paid. But with so much regulation,
most property transactions are likely to become more expensive.
• (Note: Most seller agent most likely do not want to share their
commission with the buyer agent, hence this model does not
really work yet.)
•In many cases, you will only see a Seller Agent when you view the
property.


SMS: +65 9782 8606


Property Buying Process – Financing

•Contact a Mortgage Consultant: -

• Get the property address, unit number, size and asking prices
to a mortgage consultant who will help you to assess the fair
value.
• Calculate your estimated maximum borrowing level.
• Do an approval in principle so as to assure that you have a
loan in hand before making an offer.
• Shortlist appropriate home loan packages for application.


SMS: +65 9782 8606


Property Buying Process - Negotiations

•Make sure you go prepared, as property agents are trained in price
negotiation skills.

•Make an offer to the seller and subject to an actual option to
purchase. (Not offer to purchase)
• NOTE: Property buyers must “sight” the contract and make
sure that the names correspond to that shown in Singapore
Land authority showing ownership of the property so as to
make sure to pay to the right party.
• Make your cheque out to the correct names indicated to
complete the Option to purchase. (Do not pay to agent)


SMS: +65 9782 8606



•Upon receiving your Option to purchase. You have usually 14 days to
exercise the option. (NOTE: When you exercise the option, the act of
purchasing the property is irrevocable, you have to complete the
purchase)
• The usual validity of the Option to purchase is 14 days. But can
be mutually negotiated and agreed upon.
• At this point (If you had already use a Mortgage Consultant),
you would have a bank loan approved in principle.

•Sign bank’s letter of offer


SMS: +65 9782 8606


• After getting a loan confirmed, arrange with the law firm
to exercise option. (Note: try to get a bank loan before
exercising option. Else you may risk bankruptcy.)

• Another 2 weeks from exercising option, the Property
Buyer stamp duty comes due.

• Another 8 weeks on (typical), the property is completed,
the full agree loan quantum is disbursed to seller and
your bank receives the title deeds and you receive the
keys.

SMS: +65 9782 8606


• Landed Properties and buying a Condo yet to be built
may have a slightly different process.

• Do check with us.


SMS: +65 9782 8606


About Property Buyer Mortgage Consultants
• We are NOT property agents.
• (If you wish, we may refer you to agents which we find honest.)
• Guide and help buyers with valuations and processes.
• Help buyers find the best match bank loans.
• Our services are free to you as we act a bit like
“Outsourced bankers” where we are paid a commission.
(Banks save on payroll, while we are driven to help
buyers. Win-win situation.)


SMS: +65 9782 8606


Contact Property Buyer Mortgage Consultants
(Business registration 200618162C)

Home loans and commercial loans for buying or refinancing.

Tel : + 65 6100 0608
Sms: + 65 9782 8606

Email: loans@propertybuyer.com.sg
URL:
http://www.SingaporeHomeLoan.net
http://www.PropertyBuyer.com.sg/mortgage
http://www.iCompareLoan.com


Safe property buying process

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Safe property buying process