Construction financing is a big step – with our individually tailored financing offers, we make it as easy as possible for you to find your own home. In addition to top conditions, moneylender in Singapore Cash Mart offers you even more:
Only a few decisions in life mean such a fundamental change of course as the construction or purchase of a property. So that everything can be decided optimally, you will find here, in addition to all basic information, a practical construction financing calculator. Directly following the calculator, we explain the most important steps on the way to construction financing in the guide.
Construction financing – why now is the correct time
Choosing your own home is a big step. Most private individuals build or buy a property once in their life. It takes a good deal of determination to tackle such a project. After all, there is a lot of responsibility involved in financing the construction and the house or apartment.
Nevertheless, there are many arguments for taking this step right now.
The basic conditions for a construction financing were rarely so favorable, and still the good building money conditions for the future can be secured. No one can predict whether a change in interest rates will not make all real estate loans more expensive in a few months’ time.
In addition the classical investment products bring little net yield with low interest rates. So what could be more obvious than creating inflation-protected capital with your own property?
The decision for a real estate cannot be made naturally alone because of the interest surrounding field. However, the low interest rates are a good impetus to think about the project. Perhaps you already have an environment in mind in which you want to live with your family or partner? Have you already taken a close look at your budget with a view to a construction loan?
If you already have an idea of your dream house or your dream apartment, then make a cash shortfall and add up your equity. Buying a property involves a number of additional costs, which you should ideally cover with your own capital.
In what time horizon do you think? How quickly do you want to pay off the loan for your home? All these aspects are part of the decision for a property – so that heart and mind can say “Yes!
Step 1: In which environment would you like to live?
The location is particularly important when choosing a property. In a good location you will still feel at home for many years to come. And if the living conditions and your wishes change, you will be financially secure with a property in a good location. Because the property in a good location retains its value or even becomes more valuable.
Here are the most important criteria…
…for your own home that suits your needs:
You should feel comfortable in your own home in the long term. Does the style and design of your home suit your taste? Do you love the surroundings, do you feel at home?
Does the house or apartment meet all practical requirements such as number of rooms, size of kitchen, additional use as an office, garden and much more?
Does the location suit you? Do you prefer a central location or the outskirts? Or would you like to live in the countryside or in a small town?
Can the house or apartment grow with you? Is an age-appropriate conversion possible? How will you use it if the family grows bigger or smaller?
Are suitable schools and kindergartens nearby? How long will the journey to work take, are there doctors and shopping facilities? What about leisure activities? What is the transport connection like?
…for a home of one’s own that gains value in the long term:
Is the building fabric solid and without construction defects? Does the building have modern energy values? Are the floor plans modern? Are there flexible uses?
How will the area develop in the coming years? Are new roads or building areas planned? What influence will these construction activities have on your property? Development and urban development plans provide information.
What are the prospects for the region, city or district (macro location)?
Experts assume, for example, that conurbations will continue to grow, but that many rural regions will continue to lose inhabitants.
How do you assess the microlocation, i.e. the direct neighbourhood, street and location of the building?
There are also expert opinions on the stability of value of real estate. Particularly trendy districts, for example, are sometimes problematic because high demand drives prices above a realistic level in the long term. In general, however, experts do not yet see any danger of real estate bubbles even in large cities.
The subdivision of good locations and bad locations is central. Good locations are steadily gaining in value. Information can be found in the real estate atlas, in market studies and industry reports.
