How we got our 2nd property

This post is all about our feeling , thoughts and steps by steps decision making in getting our 2nd property. Please do not judge... 
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These past few weeks have been a whirlwind excitement and nerves. We bought our 2nd house! we are over the moon about it. It all happen so quickly. 

Frankly speaking, buying a 2nd property has never ever crossed our minds mainly because: 

1. have not fulfilled the minimum stay for 5 years (bought from resale market and we have rented our flat when we were in USA.. left a few months more)
2. outstanding HDB loan of $15K (have to clear loan before buying a new property)
3. sky high property prices 

After we returned from USA in May 2014, we cleared (1) and (2) by end of the year. Since then we've been casually looking at showflats and browsing through property guru but nothing TOO serious because  we were always in a dilemma whether to do it all over again after slaving to pay our HDB loan for 10 years and whether it would add on alot more burden for us etc......

Deep down in our hearts, getting another property is what we've been looking forward to for the past few years but we are always deterred from all the negative thoughts. So what has triggered us???? It all started off with my sister and brother in law. They have just bought a condominium from the resale market and we been tagging them all this while for viewings, talking to the bankers and agents... so on the whole, it gave us a very clear picture on how much money we need to set aside for investment, what are the other hidden costs and the current policies etc....... 

We talked about it and did our maths over and over again... YES! Both of us felt that we should invest in a property while we are young since it is definitely less risky and not so volatile as compare to shares. Moreover, with the current soften in the market and drop in price. It seems to be a good option to go for. We research alot and happened to read about this article link here it has definitely given us a little push.

So finally, we got the bank to do a initial in Principal Approval (IPA) and this will determine the loan amount and budget... once this was done... we started our house hunting. we narrowed down our choices - east or north east, 2 or 3 bedder, new or resale with mini reno... most importantly must be affordable within our budget. 

We found a few from the resale market, some comes with tenancy but the price is way too steep and some need a major renovation which easily comes up to $50K -$80K on top of the price of the property...hmmm... cannot afford so we dropped the idea of getting one from resale. 

We continued sourcing until one fine day, hubby saw a "new" post but was not exactly new, it was posted on property guru a month ago... about a fire sale for this particular property which was located in Pasir Ris just a minute walk to the Pasir Ris beach.... is a new project still under construction and expected to be ready in mid or end of 2016.... being a fire sale the owner is willing to sell it below the valuation so the price is very affordable!!! But the floor area for new condo is so much smaller than the older ones. But at least, we can save up on the renovation costs and it comes with all brand new facilities. So, these are the pros and cons of buying a new versus a resale. But for us, our intention is not self stay so i guess buying a new condo will be a more wiser choice as long it comes with reasonable floor area with full condo facilities.  

We met up with the agent the next day, he showed and told us whatever we need to know about the project and the unit we were interested in. As this was term as fire sale, there were quite a number of interested buyers and we were the 5th couple in line. In our mind, we knew our chances were very slim but still went ahead to make a verbal offer, slightly lower than the price which the owner had paid in 2013...somehow that made our chances even slimmer right???? Who on earth will sell it at a loss given the fact that the value would have appreciated over the years??? Lots of questions to ponder over 

But the offer we made is definitely not something that pluck out of the air... All thanks to hubby who is very meticulous in his research and he always have a "thing" with property... he always love to read property forum so to keep himself updated whenever he can. Thumbs up for him!!!! There were lots to read and research before we derived the offer price, we took into consideration: 

• current value 
• 2013 is a peak period when the property prices went up 
• compared the price when initial launch in 2013 to the current transacted prices
• since we are intending to rent, we have to look at the rental in that surrounding area
• different level and facing will also impact on the price, as the unit is at low floor, we need to know the average per floor price differences and make the appropriate adjustments ( 1 floor diff is about $3K-5K - that was so shocking! OMG!)  

So, we prepared a cheque for the owner, which was known as option to purchase (1% of the purchase price). After that, the seller was given a week as the "cooling period" to decide whether he wants to sell...

we waited and waited... feeling so anxious everyday... totally don't feel like ourselves

Finally on the 3rd day... the agent called and the deal is ON... it just ended our agony and that was when we started to be a slave again.... lol