Are you looking for an excellent place to live and you are considering a condominium? You should know that this is a big commitment that you need to think about seriously. You need to think about how stretched you are financially for any real estate you venture into. You will also need to learn the best way to buy the condo. The goal here is to make it as less stressful as possible.
A place like the Express condos offers an ideal solution for city life. Unfortunately, this might not be so for everyone. You have your aspirations and goals to achieve, which not come with condo living as you might expect. That is where the element of stress comes in.
In this article, we are going to offer tips for buying a condo and still feel comfortable. But before that let’s consider why you might feel stressed.
Things that make people feel financially stressed
People who buy homes sometimes feel stretched financially, and there are several reasons for that. The following are the most basic ones.
– Aspiration and expectations. People who have very high ambitions and hopes in life often tend to make the wrong decisions when it comes to buying homes. They will most likely end up buying a home that is too expensive for them. As such, they strain paying for the mortgage and the utilities for the house as well.
This is the biggest reason for financial stress. It is not just within their reach, but they go ahead and acquire it. Perhaps they want to feel confirmed in their groups and community. It is not a good idea to buy a house to impress.
– Crazy property prices. One thing about real estate properties is that they keep appreciating in value. There is no day you will find real estate properties depreciating because their value appreciates with demand. These crazy prices make it hard for anyone wanting to buy the have piece.
A property may cost a certain amount today that is lower, but the person who wants it lacks enough funds to purchase it. They might want to wait until they have collected enough and by then, the price might have doubled. For this reason, they continue straining to make it because having a property of your own is better.
– They might be just starting out in their carriers. Most people want to buy a house and settle down as quickly as possible. For this reason, they get the property while they are still reasonably junior in their careers. But the salary of a junior employee might not be enough to pay for the mortgage and other things.
The best way to buy a property without feeling pressed is to save for it. And since those who but might not have enough savings, they end up straining to pay for them.
Now that you understand why people face financial stress when buying properties, how can you buy a condo and feel less stressed? Continue reading.
- Save first
You need to know how to save for the property. You should be aware of how much it will take you to save for the condominium.
Look at how much you spend per month and how much you need to put aside. A survey by Singstat in 2012/2013 revealed that a household below 30 uses $4,018 per month. This is almost half what they earn collectively. They might not even be owning a house yet. As long as two people are married, they are a household.
This means that you could be spending half your earnings and saving the rest buy a condo. You will not need to take massive loans that will drain your pockets. In essence, they will need to exercise the aspect of patience.
So how then should you save for it?
If you want to buy from the Prestige condos, for example, you need a saving plan. For those who are still dating, starting an endowment plan might be a great idea. It is shorter than tenure as it might take about 3 to 5 years.
Don’t say you are waiting for the right one before you start saving. And the endowment plan teaches you the aspect of saving discipline. It does not have many returns, but you learn the value of saving for something.
If you don’t have the saving discipline, the small endowment plan is perfect. You can say, start saving about $1000 every month depending on your financial status.
Saving is such an easy thing to do. Just cut down the things you feel they don’t add much value to your life. This is the best way to achieve discipline in saving.
- Understand how much it will cost you
Let’s consider the CPF you will need. Assuming you have been working for 5year earning $3500. Your CPF contributions will be 37% of this salary. Then 23% goes to your regular account.
If you calculate everything, i.e., 3500×23% x 12 months for five years will give you $48000.
After you have saved enough and like now you are ready to take the step, understand the price. Let’s say you have seen a beautiful home in Verde condos that cost $750k, and you will easily pass the Total Debt Servicing ratio based on their income. You have got the right down payment, and perhaps you only have a shortfall of about $1500.
- Other things can wait
You might be thinking of a wedding, but that can wait. Even if you are being sponsored by your parents, you need to make sure you have saved first for your home. Think of where you will live first before you start worrying about the wedding.
- Renovation and fixtures
You might have to renovate your condo after buying. Some of the renovations might be costly. Just try to avoid carpentry and fixtures as much as possible. Some of these things can be done at the appropriate time.
Try getting valuable furniture that is portable. It doesn’t have to be cheap furniture, what you want is quality.
Once you have set these aspects in motion, you will live in a condominium more peacefully. You won’t have huge debts to worry about because you had a plan and started early enough.