Buying & Renting Tips

What You Should Know Before Buying / Renting A Property – a comprehensive look at all that is involved in the property buying / renting process. Below tips is filled with information that will help you make an educated decision when it comes to buying / renting your property.

1. Buying / Renting a Property
If you are looking to buy / rent a property in Singapore, make sure that you know all the pitfalls before signing on the dotted line. Here are some of the major things you should look out for to avoid getting into any legal or financial tangle during the transaction.

2. Selecting a Real Estate Agent
You need to select an agent to service you. Find the agent who is familiar with the location and the type of property you are looking for. Discuss your requirements with your agent and be specific. This will allow your agent to advice and service you in a professional manner.

3. Ownership
Always ensure that the seller is the actual owner of the property. You may wish to request or your agent will show you proof when you are making the purchase / lease.

4. Eligibility to Sell (or Rent)
Ensure that the seller of the property is eligible to sell / rent the property. For a private property that is mortgaged to a bank, if the seller has lost money on the sale, and is unable to top up the shortfall on his bank loan, the bank may not allow the seller to go through with the transaction. For an HDB flat (except one-room flats), there is a minimum occupation period whereby the seller must physically occupy the flat before he would be eligible to sell the flat. For a flat bought directly from the HDB or a resale flat bought with a CPF housing grant, the seller must physically occupy the flat for five years before he can sell it. For a resale flat, the seller has to physically occupy the flat for a period of 30 months. Note that if the seller has sub-let his entire flat with the Housing and Development Board's approval, the period of sub-letting will not be included in computing the physical occupation period.

5. Bankruptcy
On some occasions, the seller of the property may be a bankrupt. With the written consent of the Official Assignee, the seller will be eligible to sell the property. However, the Official Assignee may request for all monies, including the option money or deposit, to be paid to the Official Assignee.

6. Financial Planning
Once you've decided on a location and the size area of home that you'd like, think about how much you'll be willing to spend. Bear in mind other monthly expenses that come with owning or renting a home. Your agent can help you calculate the cost of buying a home. 

7. Making an Offer
Once you find the property that you like, discuss with your agent with regards to the asking and market price for the property. Compare the property with those that you have viewed. Refer back to your notes. Your agent should be able to help you decide on an offer price. The rule is to start an offer at a price that seems fair to you and wait for a counter offer. If the seller is serious, you should receive a counter offer.