Friday, 31 October 2014

How tough/easier is buying a property in Singapore

RESNo matter in which part of world you are, buying a property is not an easy task. You need to make sure that the deal you are going to make is a legitimate one. You can do this by getting some exclusive information from your real estate agent and from the neighborhood. Thus, it is vital to get associated with a competent and reliable RES (Real Estate Salesperson).

Once an agent shortlists some of the properties and seeks your approval, you are expected to make few short trips to the site and people linked with it. These trips are meant to ensure that you get familiar with the interior and exterior of the house building and the fixtures of the prospective property. This also ensures that you are satisfied with the property details before giving your final consent. Buying an immovable property is a long time investment, and you need to be fully sure that you are making a wise decision and are happy with your deal. Thus, you should inspect the prospective property closely noting all the details and clear all your doubts with the concerned RES Singapore before finally signing the option to purchase.

Buyer’s Stamp Duty (BSD) on and after 22nd February 2014

BSD is based on the purchase amount of market value, whichever is higher

Purchase amount or Market Value, whichever is higher
BSD Rates
For the first $180,000
BSD is 1%
For the next $180,000
BSD is 2%
Subsequent (Remainder) Amount
BSD is 3%

For example if a property is purchased at $2,000,000. And this is reflective of its market value, then the BSD is calculated as follows

  • ·         For the first $180,000 the BSD is 1% of 180,000 = $1800
  • ·         For the next $180,000 the BSD is 2% of 180,000 = $3600
  • ·         For the remaining $1,640,000 BSD is 3% of 1,640,000 = $49,200

Thus total BSD payable is $1800 + $3600 + $49,200 = $ 54, 600

As a purchaser, other than the property cost you are required to pay BSD and bear other expenditures viz. legal cost and one-time fee of the solicitor. If you are interested to take a bank loan, you should know that banks usually allow loans up to the 70% of the property price; thus, you should be ready with at least 30% equity along with other expenditures to purchase a property in Singapore.

Expats interested to buy properties in Singapore should know that foreigners can now purchase non-condominium developments of less than six levels. Additional BSD is applicable for foreigners buying property in Singapore. For buying land, landed properties, semi detached and terrace houses, foreign nationals should seek a prior approval from Singapore Land Authority.

As per prevalent norms, all new real estate salesperson in Singapore are required to pursue RES course and pass the RES exam before getting their license. This has increased the proficiency and reliability in the real estate business in Singapore in recent years.

No comments:

Post a Comment