You are probably thinking of purchasing a piece of property of your dream.
But… For some reason, there is this feeling of uncertainty in the process. Should I really purchase this property or wait a while to find the other good deal?
Yes, we know that buying a property is not the same as buying a chicken rice in your local hawker stall with that uncle that rarely smiles to you.
Everyone’s situation is different. The same goes for your financial condition. You probably will have enough money for the downpayment, but will it be enough for you for the rest of the years to come?
Here are 5 questions that you need to ask yourself before doing so.
- Did you do your due diligence? Have MRT or Bus access to your workplace? Near your kid’s school? Any stores nearby? How about the environment? Put it simply, how keen are you to get this piece of property and why?
- Do you foresee a stable (or increasing) income in the future? Things like will your spouse be working?, do you have a business that generates money? How likely will you have a raise in your job? Will you be in this job for long?
- Will this house increase in value in the future? To predict the future, you usually need to refer from the past. You can refer to the market trend, past purchases of similar property or growth rate. Additionally, things like transportation development and land beautification will usually impact the price in your favor. Sometimes people will expect that the property will always increase in value in future. This is false. There are cases where the property cases are stagnant or decrease, partly due to the environment and the property age.
- What About Other Financial Expenses? Do you have kids? Do they go to school? What about a car? Any subscriptions or monthly payments? Do you take MRT or Bus every day? Put it simply, anything that got to do with your daily, weekly and monthly expenses.
Did you ask yourself these questions? Please make sure you list out the answer to map out things that you need to take into account before buying a property. You definitely don’t want to have your property to be “taken” away from you in the middle of the road just because you cannot complete the payments.
We definitely advise anyone to check with a property agent or mortgage agent for more in-depth advice on things that you are not sure about. Sure it will cost you some money now. But the value and knowledge they provide will be worth much more down the road.