Buying a house can be a big headache these days as it does not go as well as you think. You plan to buy it for years and also save money. But as you get closer to your saving target, the prices of well-developed and considerable houses increase a bit more. This causes a lot of trouble and even if you manage to save enough money and approach to buy the house, even at this time you can get things above your budget and mess everything up.

To save you from that massive trouble we have constructed an easy to understand 3 steps guide. You just need to relax and continue reading the article and you will get a good idea about the factors you should take a look at while buying your dream

Steps you should follow to buy a good house

As mentioned above, buying a house well enough for you and your family is not that easy due to budget related issues. You can read the 3 useful steps listed below to keep yourself out of these messes.

1.  Calculate Everything

Even if we write you a 10,000 words article, it is on you how you make your calculations about what you need and how much will you spend on them. Calculating or pre-planning is the best idea as the most successful people recommend to plan everything before you take an action in any field of your life.

You should sit down and think about how much you need and how much you have. You can easily calculate what type of piece do you need for your living online with a single Google search of “CPF – First Home Calculator”.

2. Save Enough

As by now should have learned a little about what you should look at while buying a dreamy living place. You should also have got an idea about how much it is going to cost you.

As homes are not easy-to-get these days and they have much more expenses other than full payment. Before you even plan to buy a home, you should save enough money so you do not run into trouble while in the buying process. Many people just go through the Step 1 stop thinking to even thinking of buying their own piece of shelter. Hope you’re not one them as they do not save enough to spend, as simple as that.

You should have some backup or emergency funds all the time as they can help you in different prospects of life as well as buying your own home. You should at least save 6 months or more for your easiness afterwards.

And just planning for house expenses is not enough, if you are a married man or a woman then you should think about all of the expenses coming after at least 4 to 5 future years. Possibilities are that you might get into medical issues, have a baby or a possible unemployment. When you will think about all the issues like a man and the leader of your family, you will never fail them.

That’s not all. Factor in the renovation and furnishing costs. Many homebuyers focus only on the property price but forget to budget for renovation and furnishing expenses. These can easily add up to tens of thousands of dollars, especially for resale properties that require extensive remodeling.

Get quotations from a few interior design firms to estimate the renovation costs before committing to a property. If your budget is tight, look for a home that is in relatively good condition to minimize renovation needs. For a new property, consider the cost of furnishings and appliances you’ll need.

3.  Choosing a Loan and Licensed money lenders

After you calculate what you are going to need, what you actually have and saved enough balance for future issues, you are good to go. After all this mind crushing planning and plotting, you get into real action which is choosing the best loan for your dream house.

As choosing the best loan as per your needs is the most important step of buying a home after you plan everything just right. And by home we do not mean bank loans not at all. Banks only give loans after your salary, financial position etc. etc. If you are thinking about taking loans from banks, then you should get this thing out of your mind unless you have a good financial position and are able to get a bank loan with no worries.

And in case you are not that stable in financial terms, the best way to get a short-term personal loan as well as long-term loan is borrowing money from money lenders.

Who are the money lenders?

A money lender sometimes referred as private lender is a non-institutional lender who can give you short-term as well as long term loans as per your needs. They can provide you loans for property purchase as well as for renovating an investment property.

You can choose among some licensed money lenders out there in market for a trustworthy and honest lender-borrower relationship. Licensed money lenders give loans on a bit higher interest rates but are trustable as they have a reputation to maintain.

Finding an appropriate money lender can get you a hard time. These lenders are of three types and they can be found from your
own family.

Types of money lenders

Money lenders can be divided into three types all according to your circle and are listed below:

1. Primary Circle

These type of money lenders can exist in your own family. They can either be a good childhood friend you have got or an aged uncle with a big moustache.

2. Secondary Circle

In this category you can have money lenders around you as colleagues, personal acquaintances or professional acquaintances.

3. Third-Party Circle

This is the most looked for category as it contains the Private Lenders and Accredited Lenders.

4. Consider the Potential for Asset Appreciation

When selecting a property, think about its potential for capital appreciation in the future. Factors that can influence a property’s value include:

  • Proximity to amenities like MRT stations, good schools, shopping malls, etc. Properties near these tend to be more desirable.
  • Upcoming developments and infrastructure upgrades in the area that could boost property values.
  • Supply and demand dynamics – areas with limited land supply and high demand usually see better price appreciation.

Thoroughly research the location and analyze historical price trends to gauge the likelihood of the property increasing in value over time. Buying a home with good appreciation potential can help grow your wealth in the long run.

5. Plan for Long-Term Affordability

Buying a property is a long-term financial commitment. Before making a purchase, consider your current and future income stability and spending needs. Factor in potential changes in circumstances, such as starting a family, career switches, or caring for aging parents.
Use the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) frameworks to assess your ability to service your housing loan along with other debts. As a rule of thumb, your monthly mortgage payments should not exceed 30% of your gross monthly income.

It’s prudent to have sufficient savings and insurance coverage to tide you through any financial challenges that may affect your ability to pay your mortgage. Being financially prudent can help you sustain your home ownership journey with less stress.


Houses are a life dream for a middle-class person, doing hard work to make it come true. Getting a money lender to give you a loan for your home is the best idea if you get a right and licensed money lender. If you get it all right, then there is almost no chance of getting anything messed up. You can now build your own house you dreamed about with a “Home Sweet Home” tag hanged on the outside wall with your name on the name plate.

Published On: April 4th, 2024

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