Checklist Before Deciding to Buy a House
Purchasing a home requires thorough due diligence to avoid incurring an unjustifiable long-term debt burden. Key steps include assessing financial readiness (budget and credit), selecting a location that suits your lifestyle (commuting and amenities), inspecting the home's condition and structure, carefully reviewing contract details and hidden costs, and researching the developer's track record.
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1. Financial and Readiness Checklist
• Assess Budget: Calculate an appropriate home price (ideally not exceeding 30–40 times your monthly income) and factor in the down payment.
• Clear Debts: Pay off existing debts—such as credit card balances or car loans—3–6 months before applying for a mortgage.
• Check Credit Bureau: Review your financial history to ensure you meet approval criteria.
• Calculate Hidden Costs: Prepare funds for transfer fees, mortgage registration fees, property appraisal fees, utility meter deposits (water/electricity), and common area maintenance fees.
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2. Location and Environment Checklist
• Commuting: Distance to work and ease of travel (private vehicle vs. public transit/skytrain).
• Amenities: Proximity to hospitals, schools, markets, and shopping malls.
• Environment: Safety, absence of noise or air pollution (e.g., not located near factories), and adequate street lighting.
• Flooding/Drainage: Check the area's history regarding flooding.
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3. Project and House Checklist
• Credibility: Check the developer's track record and past projects.
• Materials and Structure: Compare the materials actually used against the brochure specifications (e.g., piles, walls, flooring).
• House Orientation: North-South facing ensures the house isn't exposed to intense, direct sunlight all day.
• Home Inspection (Pre-transfer): Inspect the 9 key systems (structure, electrical, plumbing, surfaces, etc.). If you lack expertise, consider hiring a professional home inspection company.
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4. Contract and Document Checklist
• Sale and Purchase Agreement: Read all details thoroughly (price, transfer date, complimentary items/freebies).
• Encumbrances: Verify the land title deed to ensure the seller is the rightful owner and the property is free of mortgages.
• Expropriation Zones: Confirm that the property is not located within a government expropriation zone.
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5. Questions to Ask the Sales Representative/Owner
• Details regarding freebies, promotions, and terms and conditions.
• Common area fees: How many years must be paid in advance and the cost.
• Information about neighbors and regulations regarding home extensions or renovations.
