Monday, February 14, 2011

my Guide to buying pte property

this is just base on my experience..

1) view hse.
we did it by searching propertyguru.com
then ask my bro whose part-time property agent to contact other agent to co-broke.
they'll split the comm half.
i rather let own bro earn then let others earn full comm.. haa..

viewing hse is a very tiring process..
1 evening we can view 3-6 units (can be different condo or same condo different unit)
per unit can spend ard 15-30min viewing..
total usually 2-3hrs..
we always shag out after viewing..
somemore bro stay boon lay n he come viewing at hougang n sengkang etc..
so far we viewed ard 10 condos n more than 20 units in D19/20 ba..

the more u view, the more u know wat kind of hse u want..
also u'll roughly know wat shd the price be (in ur own feel) for tat property.
no hard n fast rule..

but take note of the "unchangeable" factors which can be important..
like
*where the hse/living room/bedroom face.. try not to have west sun. 西晒
cos in late afternoon-evening,4pm-7pm.. hse with 西晒 will be super hot..
we bring along a compass to see the direction.

*structure of the hse.. got any wasted space.. got balcony?
we think tat balcony is a waste of space, as its seldom used..
its usually used to hang clothes etc..

*is the living room/bedroom facing main road?
take note it'll be very dusty!

*wat is the view of the hse.. eg opposite bldg blk 444..
we saw this n wont want this unit liao..
pool view? usually much more expensive..

*is it low floor? usually high floor more windy..

*wat is the maintenance fee? usually ard $250-$350/mth

*full condo facilities? basic are swimming pool, tennis court, bbq pits, function room. is bonus if got KTV room, billard table, squash etc.

*how many parking lots?
usually 1 hse is given 1 lot.. extra lot depends on availability
usually need to pay for the extra lot..

*location of ur hse..
near mrt? amenities? bus stops?

*freehold or leasehold..
freehold usually more expensive

*how long is the condo liao?
10 yrs? 20 yrs?

*hows the neighbourhood?
good to tour ard the area in morning/afternoon/nite.
see the traffic during peak hrs too..

changeable factors
*sometimes the "unchangeable" factors is perfect but hse interior look old n dirty..
so tends to give ppl not good feeling.. n end up didnt buy this unit..
take note tat its ok one, anyway gona renovate it..

2) apply for AIP
meanwhile look for any bank or u have fr in bank doing mortgage loan, apply for AIP (approval in principle)
if u dun have any1 in mind, can ask me.. my fr is UOB banker..
AIP is to make sure tat u r eligible to take bank loan..
its not a confirm loan decision, jus an assessment 1st.
in case end up u cannot take loan, then trouble.. n its free...

3) write cheque of 1%
after decide on the unit, need to make an offer, then write cheque of 1% of wat u wana offer.
eg seller wana sell 1mil. u wana buy at 980k. so write a cheque of $9800, pass to own agent.
own agent will then negotiate w seller's agent for the price..

4) "exercise" the OTP (Option to Purchase)
if seller n buyer agree w a price, seller will sign an OTP (Option to Purchase).
meanwhile seller will take the 1%  n give buyer 14days to "exercise" the OTP.
"exercise" means need to pay another 4%  n confirm agree to wana buy this hse,
also need to pay stamp duty of (3% x price of hse - $5400)
within the 14 days, buyer can still change decision to dun wan to buy this hse.
but will forfeit the 1% down pymt.
so when meet lawyer, will pay 4% + stamp duty + some lawyer fee thingy.
bank usually will absorb the lawyer fee which is abt $2500..

-meanwhile these 14 days, need to find lawyer n decide which bank loan u wana take up n exercise the option. also need to do inventory list (means seller will leave wat thing behind in hse for seller, eg oven, lighting, sofa etc)
means need to find lawyer n bank loan within 10 days preferably.
left 4 days for lawyer to liase w seller's lawyer to exercise option.

in my case, i really have 2 贵人.. my bro n christine (uob banker)
cos christine give me all banks quotes at 1 shot..
this really really save my trouble of going down bank by bank for quotes..
she also take the trouble to explain to dear n me n my bro different type of package out of her own wkend timing. 谢谢你 girl..
then my bro help me assess diff bank's package (cos he's graduating soon n gona be auditor, so very sensitive to interest n numbers)
n thanks to bro, we can decide which bank loan to take without cracking our head..

deciding which bank loan is also a tedious thing. cos it involves big sum of $$ n over long period of time..
so it is extremely important to calculate n think it thru properly.
bro also help me assess how much we shd loan, our mthly financial status etc.. (funny hor.. im financial consultant, end up bro help me.. haha.. i need 2nd opinion la.. hahah)
we did our calculation even before buying the unit..
like how much cpf to pay, how much cash to pay, how much mthly instalment, how long the loan, 10/20/30 yrs? set aside $ for reno n furniture etc..
n thankfully, we settled lawyer n bank loan before CNY..
so we had ease of mind during cny.. no need to worry this n tat..

5) decide which bank loan
anyway once decide which bank loan wana get, need to get a LO (letter of Offer) from Bank.
this is to get official confirmation from bank tat buyer can get the loan.
different bank got different rules. means if bank B approve ur AIP, bank D may not approve cos bank D maybe stricter etc..
so lawyer wld wan to know that the bank confirm approve loan then will exercise the option.

6) wait for "Completion"
then meanwhile wait for "Completion" which usually takes 10-14 wks.
the completion date will be written in the OTP. must ensure completion is done before this written date, else buyer need to pay charges one...
something to take note is if use cpf to buy, lawyer need to apply for approval from cpf board n this may take 8-10wks..
so after lawyer exercise the option, buyer jus have to wait till completion.

7) source for Interior designer
so while waiting for completion, can go source for Interior designer/contractor/shop for furniture..
now we keep going to fr hse to see see look look.. wat to take note, wat to do etc..
alot of things to take note oh..
like must know how many power pts u want etc..
wooo.. tiring process again..
but am soooooo looking fwd to my 1st self own hse!
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this is me n christine in pri 6..
we knew each other jus 1 yr n we became best of frs in pri 6..

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