Singapore can be a great place for investments for its booming economy, but in buying properties in Singapore, you need to keep some things in mind. To help you with that, here are few of the things you need to be guided of when buying real estate property in Singapore:
- Residential Property Act
If you are from Singapore and you want to buy a property, good for you; but for foreigners who are interested, better be familiar with this act. Singapore imposes strict policy on foreign ownership of their lands. This act leverages the right of the Singaporeans to buy their own country’s land, therefore prioritizing their citizens when it comes to buying property. As for the foreigners, you will have to get an approval to buy restricted land such as vacant land for residential use, landed property (bungalows), property in housing developments that are not officially cited as commercial condominiums, from Land Dealings Approval Unit
- Hire a Real Estate Salesperson
You don’t want buying property to be that complicated for you and it’s easier to go autopilot. Hire a competent property agent who has a good reputation when it comes to buying real estate. Especially when you are new to the country, hire someone from a company you can trust and be reminded to hire only one real estate salesperson for each transaction as it may cause confusion for you. Be explicit when giving instructions with what type of property do you want, where and how much are you willing to pay for it. Also, be sure that your agent is knowledgeable when it comes to the country’s governing laws with Real estate purchasing.
- Go back to your Budget
Should you buy a property in Singapore, keep in mind how much are you willing to pay either by loan or cash. If you wish to borrow from local banks, you can loan up to 80% of the total purchase price or the valuation price and if you have no outstanding loan.
Also remember that there are several fees in every property transaction such as agent, stamp duties and legal fees.
Proceed with your transaction if you are already financially ready as you don’t want to be buried in debt after purchasing.
- Complete the transaction
If everything’s doing well with your negotiation and the seller agrees then it’s time to close the deal. You should educate yourself with the Option to Purchase (OTP) agreement which is to pay 1% of the total purchase price. With this, before you pay, you can be sure to be able to check the place for final inspection, date of the completion of the transaction, percentage of purchase amount. Approximately, you will be given 14 days to complete transaction and if you do, you will have to pay the percentage of purchase amount you agreed and if you decide to cancel, the 1% purchase amount you paid will be considered lost.
- File for property tax
Your property tax will be the combined value of your property and the tax rate. The usual tax rate would comprise about 10% annually.
After all the necessary requirements, it’s now time for you to grab those keys and enjoy!