With the government introducing several stimulus packages to make owning a property much affordable and possible route now, you have decided not to miss the boat and have started looking to buy a property now despite a few failed attempts.
While failing to get a mortgage application approved is the most common reason for unsuccessful property buying attempts, it is not the only obstruction in the journey of property hunting. There are many other traps that could stop you from buying a property, such as not finding your ideal property and poor financial planning. How to avoid these traps? Here are 5 ways to increase your chances of owning a property:
1. Review your financial plan
You have a high pay job but never get enough savings to put down a property’s down payment? It is time to sit down to review your monthly expenses. You may also want to set a financial goal by prioritizing spending according to what is urgent and important, cut down unnecessary spending and set a saving target timeline to strengthen your financial stand and be more well prepared for a mortgage application.
2. Start small
If you are very determined to buy a bungalow as your forever home but the savings in your bank is not enough yet, do not just sit on the plan and wait for the money to fall from the sky. Please be reminded that the value of a property always appreciates greater and faster than a fixed deposit interest in a bank. Hence, it may be a good idea to start small by buying something smaller, more affordable but is able to have a higher resale value potential. Who knows, the investment will help you to achieve your bungalow dream quicker than relying on your savings!
3. Taking a joint home loan
Taking a joint home loan to purchase a property is a viable alternative when you are not 100% financially ready to purchase your dream house alone. As a joint home loan takes into account the combined income of both the individuals applying for the loan, it means that the bank is more willing to lend as the risk is lower than lending to a single borrower. By combining two incomes, it will also increase the amount that the bank can lend you, hence your purchasing power is greater and you would have a wider range of property choices.
4. Do enough research
Buying a property could be the single biggest investment of your life and you cannot afford to go wrong. So, always do your own research before making the decision. Other than the property type, location, budgeting, bank loan application requirement and the legal procedure, also pay attention and take advantage of the property market related initiative, such as the Home Ownership Campaign (HOC), which is under the government’s recently announced economic stimulus package.
5. Engage the professional
If you have no time to spare, engage a professional agent who is always in the market and knows the local scene better than a man on the street. They can give you more than just a house tour service, but instead share their expertise hands-on analysis of the current property market, latest government initiatives information and even bank loan application tips to help your home purchasing journey smooth sailing.
[Image source: Business photo created by jcomp]
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