By and large, when it comes to the purchase of property, given the capital outlay that goes into these, many investors lack the entire outlay required and as such only fund for these via loans which are generally available of two kinds; the HDB loans and the bank loans. Find out more about these two kinds of loans, the HDB loans and the bank loans, in this post and as such be in a position to make such a better decision on the one that will best suit your interests and needs as an investor or buyer of real estate property.
When we come to the real estate market in Singapore, one thing that you need to know as an investor in the country is that there are basically two optional kinds of properties there may be and these are the HDB and the private properties. Of these, the HDB flats happen to be the dominating kinds of properties, actually representing about 80% of the market. Now, when it gets to the need to find financing for these HDB flat purchases, buyers and investors basically have two alternatives and these are either the HDB concessionary loans or the bank loans and as they are, many buyers and property investors have had such a challenge when it comes to deciding which of them would be the most ideal. As they are, each and every one of the two alternatives come your way with their unique pros and cons and as such choosing which of them to go for can be like being between the rock and a hard place but we have assembled a list of some of the things to consider whenever you are making up mind for either below.
Talking of the things to look into as you decide on which of these to settle for your financing needs for the purchase of real estate property, one that stands out as to be considered first is the eligibility issue or issues. Just as is readily seen from the name, the HDB loans are largely concessionary loans and they are only availed to one who is going for the purchase of HDB flats. As such if you are looking forward to such purchases as for condos, you will only be restricted to bank loans as you technically aren’t qualified for a HDB loan. Apart from these, there are as well some other eligibility criteria that have to be met by those who are looking forward to the HDB loans. Check out here for more on the eligibility issues that must be met by those qualifying for the HDB loans.
These said and done, fact is that the idea of the HDB loans has been one that has attracted the interest of many HDB flat buyers even looking at the stability there is in their interest rates, standing at an average of 2.6%.