HOW MUCH MUST I HAVE TO OWN A HDB ?

Before considering buying a house, it's crucial to ensure you have a solid financial foundation. The amount you need depends on various factors such as the property type, location, and your financial situation. Here’s a breakdown of what you should consider and the amount you might need:

1. Down Payment

• HDB Flats:

• New Flats: Minimum down payment is 20% of the purchase price or valuation (whichever is lower).

• Resale Flats: Minimum down payment is 25% (of which at least 5% must be in cash).

• Private Properties:

• Minimum down payment is 25% of the purchase price or valuation (whichever is lower), with at least 5% in cash.

2. Stamp Duty

• Rate:

• 1% on the first S$180,000.

• 2% on the next S$180,000 (i.e., from S$180,001 to S$360,000).

• 3% on the remainder.

3. Legal Fees

• Estimated Cost: Typically ranges from 0.5% to 1% of the property price or valuation. This can vary depending on whether you use HDB's legal services or a private lawyer.

4. Valuation Fees

• Estimated Cost: Usually between S$300 and S$1,000, depending on the size and location of the property.

5. Renovation Costs

• Estimated Cost: This varies widely depending on the extent of renovations needed. For basic updates, it can start from a few thousand dollars, but comprehensive renovations can cost tens of thousands.

6. Emergency Fund

• Recommendation: It’s wise to have an emergency fund equivalent to at least 3-6 months of living expenses set aside, separate from your house purchase funds.

7. Ongoing Costs

• Monthly Mortgage Repayments: Ensure that you can comfortably afford the monthly mortgage repayments based on your loan amount and interest rates.

• Maintenance Costs: Budget for regular maintenance and unexpected repairs.

8. Additional Considerations

• Income Stability: Ensure you have a stable income to cover mortgage payments and other ongoing expenses.

• Credit Score: A good credit score will help you secure better loan terms.

Estimated Savings Needed

For HDB Flats:

• Down Payment: 20% (new) or 25% (resale) of the purchase price. For a S$500,000 property, this is S$100,000 or S$125,000 respectively.

• Stamp Duty: Approximately S$8,600 for a S$500,000 property.

• Legal and Valuation Fees: Roughly S$1,000 to S$2,000.

• Renovation: Depends on your requirements.

For Private Properties:

• Down Payment: 25% of the purchase price. For a S$1,000,000 property, this is S$250,000.

• Stamp Duty: Approximately S$24,600 for a S$1,000,000 property.

• Legal and Valuation Fees: Roughly S$2,000 to S$5,000.

• Renovation: Varies widely depending on the extent of work.

Summary

To be well-prepared to buy a house, you should aim to have:

1. Down Payment: At least 20-25% of the property price.

2. Stamp Duty: Estimated cost based on the property price.

3. Legal and Valuation Fees: Approximately 0.5% to 1% of the property price.

4. Renovation Budget: Based on your needs.

5. Emergency Fund: Equivalent to 3-6 months of living expenses.

Example Calculation for a S$1,000,000 property:

• Down Payment: S$250,000

• Stamp Duty: S$24,600

• Legal and Valuation Fees: Approximately S$3,000

• Total Estimated Amount Needed: Around S$277,600, excluding renovation costs.