Hi there! I bought my first house at 24, all on my own as a single, unmarried woman! There’s so much I’ve learned along the way. So, I’m here to share my journey with you!
Welcome to Part 1 of my series, where I dive into the nitty-gritty of costs and expenses related to buying a house. 🏠✨
In Singapore, if you’re under 35 and unmarried, HDB isn’t an option. That left me with private property as my only choice. Here’s a detailed breakdown:
1% Deposit for OTP: This is the Option to Purchase, which is a commitment fee and needs to be paid in cash. This was about $7,600 for me.
Remaining at Completion: This can be paid via cash, your CPF savings, or a combination of both.
Minimum 25% Downpayment: With the loan capped at a maximum of 75% Loan-To-Value (LTV), I had to pay at least 5% in cash.
In total, my downpayment was $190k. As I was still relatively young, I didn’t have sufficient money in my CPF. I paid about $120k in cash with the rest from my CPF. If your CPF has sufficient funds, you simply need to pay $38k in cash, and the rest can be covered by your CPF OA account.
Stamp Duty: A tiered tax based on the property’s purchase price – 1% for the first $180k, 2% for the next $180k, and so on. This was about $17.4k for me.
Lawyer Fees: These can vary, but I ended up paying around $1,800 for legal services.
In total, I paid about $209.2k (of which, $139.2k was cash) just for the bare unit!
Once you get your house, be prepared for the expenses to really ramp up.
Commonly Overlooked Costs:
Deposits & Equipment: For a private property, the residential utility deposit starts from $150. Plus, essential equipment like washing machines and fridge can quickly become significant expenses.
One-Time Expenditures:
Reno on a Budget: I managed to all my renovation costs, furniture, and household equipment under $20k.
Kitchen Overhaul: About $4k went into tearing down existing kitchen cabinets and installing new ones, along with a sink, tap, etc.
Bathroom Refresh: Spent $1k to replace toilet bowls, taps, the vanity, and do epoxy painting.
Furniture & Equipment: I allocated $8-10k for furniture, with the rest spent on various home equipment.
Budgeting Tip: Prioritize what you need. It’s perfectly fine to acquire things gradually. For instance, I initially bought an air fryer and a pressure cooker, but later, a NinjaFoodi replaced both, which would have saved me both money and space if I had waited.
Bringing my grand total to $159.2k cash 😱
Typical Monthly Expenses:
Water Bill: About $20 a month for me.
Electricity: Approximately $100 a month.
WiFi: Roughly $40 a month.
Embarking on this journey as a young, single person has been challenging but rewarding. 🌟
Want to know more about my homeownership journey or have specific questions? Drop them in the comments, and stay tuned for the next part of this series!