Family Formation & Housing

For young couples starting families, buying their first home and/or other real estate. Covers mortgages, credit cards, interest rates, children’s education savings plans, joint accounts for couples and the like.

12 Questions to Ask when Buying a House

Posted By Financial Independence Hub | July 18, 2022

What is the one question to ask when buying a house?

To help you be informed when purchasing a home, we asked business owners and finance experts this question to hear their best advice. From inquiring about homeowners’ fees to asking about renovations, there are several questions that may help you when buying property in the future.

Here are 12 questions to ask when buying a house:

Are There any Homeowners Association Fees?

How Old are Appliances and Major Systems?

How Long Has the House Been on the Market?

What does the Inspection Reveal?

How Much Have Nearby Properties Sold for?

Are There Any Risks to One’s Health Or Safety?

What Do the Seller’s Disclosures Signify?

What Kind of People Live Nearby?

Is the Home Prone to Floods Or Other Natural Disasters?

What is the Seller’s Reason for Leaving?

What’s Included in the Sale?

Were any Additions or Major Renovations Made?

Are there any Homeowners Association fees?

When looking for a home, you usually think about the payments that affect your mortgage, like taxes, insurance and upgrades. You may also try to estimate what you will have to pay for your utilities. However, when you find that perfect home, you should also consider if there are any homeowner association (HOA) fees that come with living in a new community. HOA fees are required payments that help ensure the neighborhood and properties are maintained to a certain standard.

HOA fees can cause you to lose your home if you don’t pay them monthly or annually. They are separate from your mortgage, and the fee can range depending on where you live, possibly ranging from $100–$1,000 per month. Because these fees are not included in your mortgage, you have the responsibility to pay them, and you should factor the cost into your budget so that you don’t find yourself in a dire financial situation or risk losing your home. — Annette Harris, Harris Financial Coaching

How old are appliances and major systems?

This is one question that I believe should be asked when purchasing a home, because knowing the expected lifespan of important systems and appliances—such as the air conditioner, furnace, water heater, washer, dryer and stove—can help you budget for major repair or replacement costs. Request a house warranty from the seller to cover the expense of replacing these things if they are nearing their end of life, or if they have already reached it. — Gerrid Smith, Joy Organics

How long has the house been on the market?

I believe this is an important topic to ask before making an offer on a house, since a seller will be more willing to negotiate a lower price if their house is on the market for a longer period of time. As a result, you may be able to haggle on the price, conditions, terms and credits associated with the replacement of worn-out carpet or other obvious difficulties.

If a home is overpriced from the start, it may sit on the market for a long period before finally selling after several price reductions. For some purchasers, an overly long time on the market and frequent price decreases suggest that something is amiss with the property. As a result, you have a fantastic opportunity to work out a bargain. — Edward Mellett, Wikijob

What does the inspection reveal?

You can never ask too many questions when buying a house. It’s a major investment and one that a lot of people spend a lifetime saving up for, and it’s important to have all the information before making your purchase. Generally speaking, the important questions will be answered during the inspection and appraisal processes, which you should ensure always happen if you can help it. Continue Reading…

5 things Ex-Pats need to know before buying Property in Singapore

Posted By Financial Independence Hub | June 22, 2022

By Emily Roberts

For the Financial Independence Hub

If you are thinking about buying property in Singapore, you should consider a few things first. Diving headfirst is not always the best solution, as difficulties can arise along the way. Carefully planning your transition to a new place will make moving much sweeter. Owning a property is an immense achievement because not everybody can afford it.

Let’s look at the five things you need to know before buying a property in Singapore.

What types of Property you can buy

You need to understand your eligibility status before looking to buy property in Singapore. There are three types of property: public housing (HDB flats), hybrid or public-private housing, and private property such as condominiums.

The eligibility criteria consist of your age and whether you are buying the house alone or with somebody, among other things. It is also salient to know that a Singapore Permanent Resident (SPR) is considered a foreigner, and restrictions or limitations apply when buying property. Only people over 21 years old can purchase property in this country.

An SPR can buy properties like private condos but you cannot buy a resale HDB flat alone, and you can only buy resale ECs that reached a minimum of a 5-year occupation period (MOP).

Another major restriction, if you are not a Singaporean citizen, is that you cannot purchase new HDBs such as Build-to-Order (BTO) and Sale-of-Balance flats (SBF). Non-Singapore PRs can buy private condos, private ECs, and landed properties.

How to find a Property

There are a few ways to find properties in Singapore, but as an ex-pat, it’s easier to hire an agent. Choosing a local agent you can trust can make your search easier and hassle-free. A local agent can refine your search by guiding you towards the properties you can afford and the ones you are allowed.

As an ex-pat, you have some restrictions when purchasing property and land. Having an experienced agent with you means you will only look at the eligible properties. This way, you are also safer from scammers and overpriced property.

As the agent will be local, this person can help you negotiate better deals with the seller. While it does cost to hire an agent, it will make searching for a property way easier than alone. Even if you choose not to go with an agent, there will still be an agency fee of 1% of the purchasing price. It is to pay the agent selling the house.

Another way to look for properties in Singapore is to search online. There are a few good websites where you can get the feel of the housing market in this country. As a rule of thumb, when you search online, consider houses close to public transport and nearby amenities.

Plan your budget

Buying a property is a massive financial investment and a long-term commitment. To purchase any property in Singapore, you will most likely get a 30-year bank loan like most Singaporeans. It means 360 monthly installment plans throughout your life. Continue Reading…

Top 3 benefits of investing in Real Estate

Posted By Financial Independence Hub | June 8, 2022

Special to the Financial Independence Hub

Learning how to invest your money at an early age can set you up for success in the future. One of the most popular ways to invest is through real estate. This will allow you to earn a cash flow outside of your regular 9–5. However, many take this up as a full–time gig if they find it more appealing or successful than their typical job.

The benefits of real estate investing are almost countless, but there are a few that stand out from the rest. Let’s take a closer look at the top three benefits of real estate investing:

Buying is Cheaper than Building

If you plan to start your investment route in real estate, you’ll find that buying a home is typically much cheaper than building. Start by figuring out how much house you can afford and then apply for the proper mortgage. The process is relatively simple, especially with the help of a real estate agent.

The waiting game starts here, but compared to the length of time a home build is, this process is much shorter. Once your offer on the home has been accepted, you can then decide what you plan to do with the house; whether it’s to earn passive income, live in it, or both. Either way, your home’s equity will begin to grow. The only difference between the two is making money on the home on a consistent basis or collecting the equity of your home once you sell.

Earning Passive Income

In recent years, finding new ways to earn passive income has been a very popular side hustle. Especially for young adults, this is a great way to earn money while also working a full–time job. Check out our top 3 ways to start real estate investing to help you choose which route you want to take. Whether you choose to rent the home out monthly or are considering the flip and sell method, you can earn a significant amount of passive income. Continue Reading…

How to mitigate the burden of Sudden Wealth

Posted By Financial Independence Hub | June 6, 2022

By Beau Peters

Special to the Findependence Hub

You’ve always dreamt about it and now it’s happened. Your ship has come in. You’ve found the pot of gold at the end of the rainbow. Your future is secure. You have found sudden wealth and now the world lies at your feet, just as you’ve always wanted.

And yet, perhaps life isn’t quite what you expected. Perhaps the affluence you’ve found has brought with it as many unanticipated burdens as it has alleviated. Indeed, no matter how you came into your good fortune, the simple truth is that sudden wealth has its own challenges, ones that you must be prepared to address effectively if you want to secure your own future well-being.

The Psychological Toll

Before you came into your money, you probably imagined that if you were only rich, your life would be perfect. To be sure, wealth can solve a lot of problems. You no longer have to worry about how you’re going to keep a roof over your head or food on the table. You don’t have to worry about the car note or your student loans. You’re secure, as is your family.

However, when you’re absolved of financial worries, especially when this relief comes quickly, that can all too often shine a bright spotlight on other issues in your life. The obligation to make a living and pay off your debts might well have served as a distraction, enabling you to avoid confronting challenges in your relationships, your career, or even your own mental health.

With this obligation removed, so too is the distraction it once provided. You may well find yourself overspending in the effort to continue the avoidance. You may panic buy to comfort yourself or to relieve boredom.

You may lavish your friends and loved ones with expensive gifts in an unconscious attempt to buy their affection or to compensate for guilt you may feel over your sudden prosperity. In fact, emotional spending is one of the most significant, and most pernicious, ways people waste money because the pattern is such a difficult one to break.

Whatever the reason, overspending can be one of the first and most important symptoms of psychological distress in your new life. Confronting the source of the issue, the depression, fear, guilt, or trauma that often lies at the root, is essential to overcoming it.

Managing the wealth

When you’ve had a windfall, it can be tempting to think that the hard work is done. It’s often just the beginning. Far more often than not, the greatest challenge lies not in acquiring wealth but in keeping it. Continue Reading…

Die with Zero?

Posted By Financial Independence Hub | May 18, 2022

By Bob Lai

Special to the Findependence Hub

Recently I met up with a good friend for a much-needed chat. Over the course of a few tasty cans of beer, my friend mentioned that he recently listened to the “Die with Zero” audiobook and really enjoyed the key messages of the book.

Curious, I borrowed the book from the local library and finished reading it in two days.

The book’s author, Bill Perkins, suggested that we should all aim to die with zero dollars in our bank account, or at least as close to zero as possible. He argued that too many people spend unnecessary energy working extra years only to earn money that they wouldn’t be able to spend in later years and die with a large sum of money in their bank accounts. This is definitely different from the traditional belief of saving money during your working career and spending your savings once you’re retired.

Why die with $200k in your bank account, considering it took you an extra five years to save it, when you could have stopped working five years earlier?

Perkins believes that our lives are the sum of our life experiences which can be quantified and optimized. Therefore, we should focus on spending our money when we are younger and obtain as many life experiences and memories as we possibly can.

My friend now believes in spending his money in the most optimal way to obtain memorable experiences for himself and his family while keeping a focus on saving for retirement in the best approach. This is similar to what I’ve been preaching on this blog – find your own personal balance between spending money to enjoy the present moment and saving money for your retirement.

The fallacy of “save-save-save” mentality

For many of us on the financial independence retirement early (FIRE) journey, we think about saving money constantly. We think about what’s the best way to save money and how to boost our savings rate, so we can become financially independent earlier.

But the “save-save–save” mentality isn’t actually healthy. It’s actually giving the FIRE movement a very bad vibe.

I’ll be honest, I was certainly guilty of focusing purely on our savings rate early on our FIRE journey. I wanted to cross the finish line and hit the escape button. Over time, however, I found that I wasn’t enjoying the small things in life. I felt frustrated when we spent money eating out or having a cup of coffee and treats at a cafe; I was having arguments with Mrs. T over these small expenses, because I wanted to save more money to expedite our FIRE journey.

When I stepped back and looked at the bigger picture, I realized that the “save-save-save” mentality wasn’t healthy. It was actually quite detrimental, especially to my relationship with Mrs. T.