Planning For Your First Property Part 1
In one of our earlier articles, we highlighted the importance of early planning for interior designing and doing up a new home. Now, let us examine the four pillars – mortgage, renovation, furniture and appliances, and property tax and insurance - of financial costs that one will have to shoulder for his or her first property. The process of buying your first house is at once exciting and intimidating until broken down into bite-sized steps. In this article, we will examine the mortgage and renovation costs.
Mortgages for HDBs can be furnished by either a HDB loan or a bank loan, while the latter is only applicable for that of private properties.
Table 1: Compilation of HDB Loan Vs Bank Loan
It is apparent that each type of loan has its own merits – an individual’s personal preference and financial situation should ultimately be the key determinants of which to choose.
Let us consider a self-employed freelancer with a variable income.