Buying your own home

|     Standard Chartered Bank     |

WHEN it comes to buying your own home, there’s a lot to consider and the choices can be overwhelming. So where do you start?

Probably the most important questions to ask yourself are ‘how much is my budget’ and ‘how much can I afford to pay every month’. Your budget will determine what size and type of house you can buy and where it will be located. You would also need to consider how much money you need for a down payment.

Establishing your goals and then developing a financial plan will allow you to manage your monthly finances so that you can both save for a down payment and also calculate how much you can afford for the monthly loan payment. While saving for the down payment, you may also want to survey the housing market and prices to gauge what type of property you can purchase.

While banks are in the business of lending money, banks also offer many other services to all home buyers. Standard Chartered Brunei for example, has a comprehensive list of services to assist home buyers, be it a first-time home buyer, or those upgrading to a newer and bigger property, to homeowners who are considering refinancing an existing home or investors that would like to invest in properties. With the current promotion on Mortgage Loan, Standard Chartered also lets you choose the home financing solution that works best for you, be it with low interest rates or higher subsidies.

Buy What You Can Afford

Although real estate prices generally rise over time and that the value of a property in 10 year’s time will normally be higher than now, always buy the property that you can afford. Be prepared to spend time viewing multiple properties and to even be disappointed in situations that arise when the property you finally decide upon is sold while you deliberate. It is best to be cautious, to set aside time in seeking out the property you are most comfortable with and viewing the possible properties as frequently as possible and at all times of the day.

The first few years of paying off a loan are generally the most difficult as there are many commitments to cover. Nevertheless, over time, with salary raises expected, subsequent repayments will not be too difficult as the capability to repay is higher.

Remember there will be additional costs to purchasing a property – legal fees, stamp duty, real estate agents’ commissions and even renovations, extensions and purchasing new furniture.

Home Ownership – Avoid the Pitfalls

Purchasing a property is probably the biggest investment that you and your family will make in your lifetime. There are many steps to making such a purchase and few people have intensive and extensive experience at all stages of home buying.

Therefore, buying a home can be a nightmare to some, but it does not necessarily have to be this way. Seeking assistance from those who have been through the process can really be of great help as it means you can learn from them.

Do Your Homework

Like most financial transactions, the more homework you do prior to buying, the better equipped you will be for all the challenges that may arise. Fortunately, there are many people who have bought their own property, so there are just as many people who can offer assistance.

There are also many books on home buying that can help make the process a little easier. Seeking assistance from a good banking partner is also an important first step as banks have assisted thousands of homebuyers before and are glad to offer their expertise to first time homebuyers or even to home owners who are upgrading to a better property.

Most homebuyers will need to seek additional funds to buy their home. Banks will be able to assist you with information on home loans.

Professional Advice

Seeking professional advice in buying property is always recommended. A good lawyer, a qualified real estate agent and an understanding bank are very important in such a huge purchase.

Buying a property should be one of the most thrilling and rewarding experiences in your life. At Standard Chartered Bank, we are committed to guiding you every step of the way.

This article is for general information purposes only and while the information in it is believed to be reliable, it has not been independently verified by us. You are advised to exercise your own independent judgement with the contents in this article.