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One common problem that faced by every home buyer when buying a property in Singapore is the choice between HDB home loans and bank loans. Today, the number of HDB apartments are growing in Singapore for example in Bukit Panjang. Many Singaporean couples or younger generations who start buying their HDB apartment often get surprised when they learn that banks charge much lower interest rates than HDB loans. Let’s take a closer look at the key differences between HDB loans and bank loans and which one is better.

1. HDB loans have higher interest rates than bank loans

One of the main and key differences between the two is the interest rate. HDB Concessionary Loans have a very simple formula as the interest rate is the prevailing CPF Ordinary Account (OA) interest rate, plus 0.1%. This comes to about 2.6% per annum, a rate that has remained unchanged for a long period. As mentioned, the HDB loan interest rate is 2.6%, and rarely changes. Bank rates are more inconstant because they are based on current SIBOR and SOR rates, which are usually cheaper. Bank interest rates normally range between 1.6% to 2.05%. Therefore, it is true that the banks are able to offer a lower initial advertised interest rate compared to the HDB loan. If homeowners are confident to secure this advertised interest rate for the duration of the loan period, then a bank loan will certainly be better than a HDB loan.

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1. Settling for the wrong mortgage

To be in the best buying position you need to ensure that your loan has been prequalified before looking for a house. You also need to find out how you can afford the house. You can use the many mortgage calculators in the net to see the amount of money that you can borrow . Remember, what the bank can actually lend you and what they have indicated is different. Instead of going to one bank, use an independent broker who can access a variety of finance products and lenders. In short, you need to choose your finance package well.

If you are a first time buyer,buying a home can be a daunting and challenging task. There are many misconceptions that buyers may come across while buying a home. Since it’s oneof the biggest investments that you will ever make, it’s important to make thebest decision. Besides browsing through the property portal while looking for properties in bukit jelutong,you might want to consider these 7 biggest mistakes and misconceptions that about buying a home.

2. Letting your emotions to overtake you

Do not allow yourself to get attached to the house so much that you lose your sense of thinking. While it’s difficult not to get emotional, you need to remember that this is a future investment. If you let your emotions overtake you, you can end up spending more than you can afford. Whether you want a backyard or multiple bathrooms you need to prepare a list of the most important things that you need. However much you have, you will not find a house that meets all your need. It’s, therefore, very important to narrow down to the most important things first.

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Buying a house in Penang is still something that you cannot afford yet. With living expenses being so high nowadays, you try to minimize all costs as much as possible. Therefore you decide to look for house for rent in Penang and start comparing prices in order score a cheaper deal for yourself and find the perfect rental home. This guide will tell you the tips in deciding the right rental for you.

1. Know what you want

Before you start browsing around looking for a house for rent in Penang, ask yourself what do you want and what are you looking for exactly. This would save you on lots of hassles at the later step. What kind of house are you planning to rent in Penang? Are you looking for condominium unit, apartment unit, terrace house or a bungalow? What is the preferred size? How many bedrooms would you prefer? Is parking space a concern for you? Is privacy your main concern? Is the place pet friendly? Is safety the most important thing you look out for when deciding a place to rent? Do some research on rental properties in your preferred area to give you a rough idea on how much your budget should be. Prioritize on your criteria then make a list and narrow down your choices.

2. Deciding on a budget

After deciding on which kind of house that you are looking for to rent in Penang, it is time do draw up on a budget. Consider your budget and your needs. Determine a price range that you will be able to pay monthly. Be realistic and stay within your budget. As a rule of thumb, you should not spend more than one third of your monthly income in paying for rental. Keep in mind that there are other expenses that you need to take into account, such as transportation, electricity and water bills, internet, insurance, entertainment fund, traveling fund and savings. Therefore, do your planning and plan your budget ahead because you do not want to get yourself into debts. If you are engaging a real estate agent in searching for a place to rent, do let them know your budget, priorities and what you are looking for, so they will be able to come up with a list of houses that fall within your budget, specifications and needs. If the place that you like does not fit your budget, look for another house to rent in Penang. Keep on looking until you find the right one.

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Wanting a place of your own but could not afford to buy your first property in Singapore yet? Properties in Singapore along with living expenses are expensive and you cannot afford to get yourself a property in Singapore just yet. Therefore you decide to rent an apartment in Singapore. But how much should you pay for renting an apartment in Singapore? What is the actual rental cost of apartment for rent in Singapore? Before renting an apartment in Singapore that you can afford, it is crucial to figure out the actual cost of renting an apartment in Singapore to avoid from paying more than what you should. The basic rule of thumb, be realistic and set realistic budget within your means to save you from disappointment.

First and foremost, use the rental calculator to check for the rent affordability of the apartment for rent in Singapore. Just key in your monthly net income, monthly expenses, monthly savings, monthly debts, and the location of your desired apartment into the provided columns and the calculator will do the rest. The results will then suggest the rental cost that you can afford comfortably with apartment listings within the range for you to decide. Definitely a life saver if I may say so.

Next, you have to know that the amount that you will be paying is more than just rental cost for the apartment itself in Singapore. Let us just face the reality. Nothing is free and everything costs money. Take into account the necessities that you need in your daily life, such as transportation costs, e.g.: transit fees, car payment, car insurance, petrol, health fees, renters insurance, credit card bills, tuition fee loan payment, cellphone, Wi-Fi, groceries expenses and utilities. In addition, the leisure needs for yourself, such as gym membership fees, shopping, daily caffeine fix, Friday’s night happy hour, Netflix and etcetera. All these can add up to quite a huge amount if you do not plan your budget wisely, which will then affect the next point that I will go into – savings. Having a saving is crucial as it might help you through difficult times in case of any events that happen unpredictably. Therefore, bear in mind that is is important for you to have a saving. It does not matter how much but at least have a portion of your monthly income fix for your savings plan or investment account every month to tide you through unpredictable events in the future.

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