Topic 7

Question 1

What are the main types of residential property in Singapore

Answer 1

public sector
private property
semi private

Question 2

What are the factors affecting property prices in Singapore

Answer 2

general economic conditions
population changes
affordability and availability of money
infrastructure
govt. housing policies and measures

Question 3

What are the costs of buying and maintaining a property

Answer 3

commission
legal cost
stamp duty
valuation fee
insurance premium
property tax
maintenance cost
utilities
mortgage payments

Question 4

What are the steps to calculate how much you can afford?

Answer 4

compute the max. cash instalment per mth
compute the max amt. of CPF funds you can use each mth
Add the 2 components
calculate the max loan
compute max. affordable purchase price
determine if you have sufficient funds (downpayment, monthly instalment)

Question 5

What are the valuation approaches?

Answer 5

cost approach
comparative sales approach
income approach