Step 1：Consideration before buying a flat

1. Do I want to rent or buy?
   Think the following questions before buy: Will I stay temporarily? Is my financial situation stable? Do I plan to move frequently? Before buying a flat, the purchaser should know what he/she wants and can afford. The first decision is whether to rent or buy a flat. Both rent and buy have their own strengths and weaknesses. The buyer should choose according to his/her needs and interest. The following is a Comparison between Rent and Buy .
2. Do I want to have a first-hand flat or a second-hand flat?
   If you decide to buy, there is still the consideration of choosing either to purchase a new flat or second-hand flat. The following is a comparison between these two types of flat in the point of view of mortgage and risk. Here is the Comparison between buying new and old flats.
3. What type of flat do I want to buy?
   This is based on your reasons for buying a flat, is it for investment or living purposes?
   The buyer should figure out his or her financial status before making any decisions. The buyer should also be aware of the loan schemes offered by the government. As the Government Home Starter Loan Scheme is beneficial, the potential buyer should get more information about these schemes, such as application requirement, loan amount, related terms, etc. The buyer should try to calculate his/her uncommitted monthly income and loan repayment capacity. GoHome has prepared the Home Mortgage Plan for your reference.
4. How's my financial situation?
   You should compare and research different loan plans provided by the government. You should prepare a budget proposal and find out what you can afford.

Step 2：Set criteria for finding a home

1. Which district or area is suitable for you?
   The factors you should consider include the average market price of the area, the potential for the price to rise, the resistance to devaluation, the urban planning, existing or future transportation, school network, public facilities, restaurants, shopping, environment, public security, etc.
2. Choose which new development and which unit to buy?
   The factors you should consider include the location of the new development, quality of property, facilities, age, the reputation of the developers, price, range of unit areas, the potential for the price to rise, susceptibility to devaluation, etc.
3. It's important to think about the price range you can afford, area requirement, efficiency rate, layout, direction and view. It is better to compare the selling price of the flat with other new developments in the market. Potential buyers can do research by gathering information and opinions from professionals.

Step 3：View the flat thoroughly

1. Show flat is divided into two types:
   Some show flats are set in the real flats of the new developments, which are nearly completed, thus making you more confident about the quality of the project. This more realistic setting provides potential buyers with a better look and concept of the development. In this case, you can use a ruler to measure the area for a more accurate assessment of the flat. In addition, this procedure helps to prevent any miscalculations under the effect of light colour furniture and mirrors. The other show flats are usually set in shopping arcades or commercial towers, you cannot confirm the exact size of the area until the project is completed.
2. When is the best time to view the show flats?
   On the weekend, viewers may have to queue up for a long time to view the popular show flats. It may be a waste of your time. However on the weekday, there will be less people and viewers will have an opportunity to share opinions with other viewers and ask the site staff questions.
3. Check if the unit and the property is suitable for you:
   All of the features you should check include the layout, view, fittings and materials, decoration, bay windows, furniture and electrical appliances, public facilities and the surroundings. It's better to check every angle of the sites' surroundings to make sure the directions, views and feng shui are desirable. If you cannot view a specific flat, you can try to persuade the sales department staff to let you have a look. Whether you succeed depends on your enthusiasm and luckiness. After receiving the brochure, you should check the information and agreements section especially relevant is the Deed of Mutual Covenant and Management Agreement. Please click here for the Brochure Notification.

Step 4：Notification for transaction

1. If you decide to apply for a ballot for the project, you have to choose a few units which you prefer.
   
2. Before buying, decide what kind of ownership structure is appropriate and suits your personal needs. Is it a joint tenancy or a tenants-in-common?
   • Joint Tenancy means the property ownership is shared by two owners. If one of them passes away, the other owner will automatically have ownership of the property.
   • Tenants-in-common means the property ownership is shared by two or more owners in proportional shares of ownership. If one of them passes away, his or her proportion of ownership will be inherited by his or her successor instead of being shared by the other owners.
     
3. Make sure you understand and compare different loan plans offered by the government and remember the deadline to select units.
4. Sometimes, the developers let estate agents to sell their first-hand units to promote and increase sales. It is often quite attractive when some agents offer special packages such as commission refund, cash refund or provide furniture coupons, etc. You can directly ask the developer or estate agents if you are interested in buying a flat.
5. If you are interested in specific units, then ask the bank for a valuation and mortgage plan. Recently, many developers have arranged numerous banks to evaluate the units for buyers.
6. Have in-depth knowledge and broad understanding of the sales procedure, payment methods and the agreements you have to sign.
   1. Applying for a ballot for the project
      Sometimes, the buyer has to pay a cashier order as an initial deposit to reserve the purchasing right, then wait for the drawing results to see the purchase order. Sometimes, the purchase order works on a first-come-first-serve basis. Other methods the developers can adopt are internal sale or tender.
   2. Signing the Preliminary Agreement for Sale and Purchase
      The buyer has to pay a deposit, which is often 10% of the purchase price (less the initial deposit) upon signing the Formal Agreement for Sale and Purchase.
   3. Signing the Formal Agreement for Sale and Purchase
      Generally, the buyer has to sign the Formal Agreement for Sale and Purchase at the solicitor's office within 14 days from the date of signing the Preliminary Agreement. The buyer has to select a suitable payment method, such as progress payment on list price, immediate payment or immediate equitable mortgage on special price, etc. Meanwhile, the buyer has to pay the legal fee for Contract of Sale and Purchase, Deed of Mortgage and Stamp Duty (agreement for sale).
      
   4. Deed of Mortgage
      The term of the mortgage is subject to the payment methods and negotiation with the specific bank. Any charges and costs included in the transaction are listed in Related fee of sales & purchase, the buyer can use this for reference.

Step 5：Check the details of the unit

1. Take the keys
   When you check the unit according to the hand over date, the first think you have to do is check the number of keys and locks to ensure they are working properly.
2. Check the unit
   It is better to have interior designers, contractors or property management professionals to accompany you when you are inspecting the flat. Their expertise and objective opinions will be very helpful just in cause problems arise.
   
3. Remember to bring a camera or a video camera to take photos as prove of evidence.
   
4. Usually, the developer will provide a defect report and let the owner complete the form if there are any defects.
   Note: send back your defect report Remember to send back your defect report in time, otherwise, owners have to be maintain on their behalf.

Click here for the Checklist for your reference.

After the buyer has taken over the flat, the story does not end here. The buyer has many decisions to make such as decoration and whether to buy home insurance. If you want more information and ideas about home decoration, please check out Decoration Tips or House 18 Interior Design. For more information about the steps involved in buying home insurance, GoHome has prepared the Home Insurance for your reference.