Over the years, the government has been more family-oriented, yet it has not forgotten the growing number of singles. Thus, they’ve amended the housing regulation for them. Unmarried Singaporeans are currently allowed to purchase a 2-room flat for singles directly from the Housing and Development Board (HDB) and even subsidized for it.
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The 2-room flexi for singles is composed of a bedroom, an attached bathroom and a kitchen. While type 1 is 36 square metres, the type 2 is 45 square metres.
Under the regulation of HDB, singles age 35 and above can purchase 2-room flexi flats with the Single Singapore Citizen (SSC) scheme provided that that they are Singaporean citizens with income of up to S$5,000 a month. Though singles have to pay S$15,000 more than the married couples, they can reimburse the amount through CPF Housing Top-Up Grant when they get married.
Singles can only purchase flats in non-mature estates (properties that are considered less than 20 years old). They must also be first timers; this means that they must not currently or previously own any properties here or abroad.
When saving money to buy your own flat for the first time, you should not forget that there are still more expenses than meets the eye.
These are the legal documents which prove that the property is under your name. The price of the flat could exclude this fee.
HDB requires the flat owners to buy fire insurance for their homes. Fire insurance policy helps the flat owners with the cost of reinstating their homes. This includes structures and fixtures but excludes the household contents.
You must spend some time shopping around for most affordable furniture that you really need. If you fall in love with a pricey piece of furniture, take time and find a similar looking one in the web. You can also purchase a second- hand furniture.
Using things such as the faucet, shower, and other fixtures naturally leads to wear and tear. You have to keep some savings that you can use in case you need something to get fixed.
When you were living with your parents, you probably chipped in the bills or your parents pay it in full. Remember that you consume electricity and water every day. Save money by keeping air conditioners in timer, turning off the lights when not needed, and running fully loaded laundries. You may also buy energy efficient appliances. They may be pricey for now, but they will save more in the utility bills in the long run.
Make sure your CPF Contributions are In Order
Your CPF contribution depends on your age. If you are 55 and below, your Contribution Rates must be 37% of your wage. Make sure that your employer pays the 17% top-up. An HDB loan can only pay as much as 90% of the flat’s price. The remaining 10% may be paid through CPF or cash. Furthermore, you can also use your CPF to pay additional costs such as the fire insurance and the conveyancing fees.
Save at least 20% of your income
You can use your savings to pay any additional fees in cash without incurring debt. If you have some savings, you can use it in any emergency situation without affecting your monthly budget.
Endowment Plan or Blue Chip Programme
An endowment fund is an insurance fund which you can use as savings. You can only use your savings for specific needs such as university education, a home, or any long-term plans.
Blue Chip Programme is an investment plan with shares as low as S$100. Blue Chip is a common stock of a nationally known company with a reputation of quality service and products. You can buy smaller number of shares through OCBC and POSB with your chosen monthly investment amount. You can also sell your shares through OCBC and POSB online banking.
Do not buy a car yet!
If you are getting a loan from HDB or a private bank, you will have a hard time to get an approval if you have high Debt Servicing Ratio (DSR). DSR is measured by your debts against your income. For example: If you are earning S$4,000 a month and your total debt is S$2,000, your DSR is 50%.
If you buy a car before purchasing a flat, your Singapore car loan will be reflected to your cumulative debt and it will increase your DSR. You will have to consider other loan providers such as licensed moneylenders or you will have to pay off all your debts first.
Get loans fit to your needs
If you need a loan to fully pay your flat, take time to shop around to the best offered loans. Consider getting a loan from a licensed moneylender in Singapore as they offer more flexible repayment schemes fit to your financial standing.
If you are in need of a personal loan to pay off your first flat, give Cash Mart a call. The friendly staff are ready to listen to you and walk you through the loan process. Let Cash Mart help you get your very first home!
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