Asked 1w ago
It is also important to note that we do not have a lot of savings.
When you buy a house, the cost is very huge, normally about 30% of the house price (lawyer fee, agent fee, downpayment), unless you can BTO or use grants.
The good thing about CPF is that you can use the money in it to pay for your house. If your CPF OA money is enough, you do not have to use cash to pay for monthly instalments.
Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit.
Here is a Guide:
Next, we should spend quality time to do a proper budget planning. There are various types of housing in Singapore. As a result, we need more detailed planning in order to give you responsible advice.
For instance, we may be looking at a property that requires a cash downpayment of $50k. Moreover, the renovation and furnitures will cost another $50k. In sum, we will need to save a total of $100k cash in order to be ready for the house.
In like manner, conduct comprehensive financial planning and breakdown all these numbers.
Thereafter, create a budget that is capable of helping you to plan for the future. The best way to do this is via automation.
How I do My Budget:
Once you have a financial goal and a budget, then we can determine the best time to submit a house application. At the end of the day, you won't want to be caught in a position when the application is successful but you face liquidity issues.
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