If you are planning to relocate to Singapore and purchase your first home, then there are lots of different things to budget for, and plenty of strategies for saving that you will need to put in place in order to ensure that you can afford the purchase. Saving up for your first home is a big step, especially if you also have the process and costs of quite a big overseas move to factor in.
One of the biggest steps to take while saving up for your first home in Singapore is to secure work in the country. The best way to do this is to get an employment offer in principle before you move, as this will allow you to apply for an employment pass from the Ministry of Manpower and live and work in the country to build up your income and savings.
Consider the Right Home Loan for You
Before you start your journey to becoming a homeowner in Singapore it’s important to consider the right home loan for you. This is especially important if you are a foreigner looking to buy a property in Singapore for the first time, as you will only be eligible for certain properties and home loans. For example, HDB sales and HDB home loans tend to be cheaper in comparison with others, but to be eligible for this you will need to meet certain criteria, and one buyer should be a citizen of Singapore. To find out more about the different types of home loans, and plan for getting the right one for you, check out PropertyGuru. This is the top property site in Singapore with information on HDB sales, properties available, home loans, and other costs you will need to factor in when buying.
Reduce Your Debt Expenditure
The best first step to take when saving up to buy your first property in Singapore is to reduce your debt expenditure as much as possible. When applying for a home loan, banks and lenders will consider your level of debt and how much money each month you spend on repaying debt, so reducing debt is a wise way forward. Consider paying off any smaller debts first and then using the money that you would normally put towards them each month to pay extra towards larger debts. Making payments on time will go in your favor when it comes to applying for a home loan.
Cut Unnecessary Expenses
If you are in the process of saving up for a down payment on a property in Singapore, then reducing any unnecessary expenses is an ideal way to get the money that you need faster. Don’t forget that along with budgeting for the down payment you will also need to factor in the cost of an Option to Purchase deposit which will secure your offer on the property for between one and three weeks and prevent anybody else from making an offer on it while you complete the purchase. This will usually be around one percent of the total property value. Go through your weekly or monthly expenditure to find out more about where you could potentially cut costs. Cancel subscriptions that you do not need and shop around to find out more about where you could potentially get things like utilities or food cheaper.
Ditch the Car
If you are going to be moving to Singapore to live before you start the process of buying your first property there, then the good news is that you can easily live without the huge expense of a car. In fact, getting a car in Singapore is not really worth it as it can be much more expensive to drive here compared to in other parts of the world, with car prices far higher compared to elsewhere and drivers required to get a Certificate of Entitlement which is a huge cost that can set you back almost as much as the car itself. If you currently drive, then moving to Singapore and sticking to the reasonably priced, reliable public transport system that most of the island use is a great way to reduce your regular expenses.
Secure Your Job Offer First
Securing your job offer before you move to Singapore will make it easier for you to start working as soon as you arrive in the country, reducing the amount of time that you are without an income. It is often much harder to find work in Singapore after you have arrived due to strict employment laws that prioritize local citizens. Having work lined up before you arrive means that you can start working as soon as you get an employment pass and take advantage of the lower income tax rates in this country.
If you want to buy your first property in Singapore, then it’s important to have strategies in place to save for your purchase.