Thinking about moving out and getting your own place? You might find yourself asking “Where do I even start?” or “Can I even afford to?”.

It’s totally normal to feel a bit overwhelmed — many buyers do, especially if they’re new to the whole process. But no worries, I’ve got you! Here are three common mistakes that trip people up and some tips on how to avoid them.

1. Not Calculating the Total Costs

We all know the price of the property itself, but there are hidden costs that can add up fast if you’re not watching out for them. It’s like seeing the price of a meal on the menu, forgetting the 10% service charge and 9% GST and getting a surprise when the final bill arrives!

It’s easy to overlook extra costs like Buyer’s Stamp Duty (BSD), legal fees and renovation expenses when planning for a house. These can seriously impact your budget if you’re not careful. To understand what are the upfront costs you’ll need to consider, check out this article.

You don’t want to end up stretched thin on daily expenses because of home loans and other costs, so it’s important to factor everything in from the start. Planning for these extra costs also helps you set realistic expectations while house-hunting.

If your dream is to create a Pinterest-worthy home, then you’ll need to set aside a larger budget for renovations. This may mean choosing a smaller home or one in a less-central location to balance your expenses out. On the flip side, if you just need an interim place to stay while saving for something more permanent, you might opt for a property with higher resale value and keep renovations to a minimum.

Technically you don’t have to compromise if your budget allows for it. But let’s be real — we can’t always have it all.

2. Ignoring Loan Eligibility

A lot of buyers fall into the trap of overestimating the loan amount they can secure. It’s easy to get excited and think that your monthly salary alone can handle a big loan, but there are limits set in place by the Money Authority of Singapore (MAS).

There are two key loan limits to keep in mind — the Mortgage Servicing Ratio (MSR) and the Total Debt Servicing Ratio (TDSR). The MSR limit applies specifically to home loans for new HDB properties and Executive Condominiums while the TDSR applies to all loan types including those for resale properties.

Both loan limits are a key factor in determining how much moolah you can realistically borrow. Currently, the MSR limit is capped at 30%, which means a borrower can use only 30% of their gross monthly income to repay a mortgage loan. For the TDSR, this is capped at 55%.

Knowing what you can realistically afford saves you from getting too attached to a dream property only to find out it’s beyond reach. A little preparation now goes a long way towards a smoother buying experience!

3. Skipping the Research

Doing a bit of homework before buying a home can save you a lot of hassle! Each property type has its own rules and requirements, so knowing what you’re eligible for is important.

HDB flats, for example, have specific eligibility criteria—things like citizenship, income ceilings, and a Minimum Occupation Period (MOP) that might affect your plans.

Condos, on the other hand, come with some extra costs that might not be obvious at first—like regular maintenance fees. You may also face higher premiums for home insurance, increased utility bills, or even extra transportation costs depending on the condo’s location.

Executive Condos (ECs) are a unique case—although they’re public housing for the first 10 years, they are treated as private after that, so only certain buyers can purchase them.

Understanding the rules behind each property type will help you avoid any surprises and allow you to make a more informed choice.

Don’t Be A Rookie 

Buying a property isn’t as simple as comparing prices between online stores during an 11.11 sale. It’s more of an exciting journey that also comes with many steps. By staying proactive, doing your research and fully understanding your purchase, you’ll set yourself up to avoid financial strain later on. If you’re feeling a bit lost along the way, I’m here to help guide you through each part of this journey.