How to Invest in Property in Singapore
An easy and self-help guide to buying your own property or home in Singapore! Including facts about real estate professionals, in-depth financial transaction methods, property taxes on Le quest price and local rental!
Hire A Property Realtor
The initial step to any property or home transaction is hiring a property broker.
For your benefit throughout the steps involved in selling and buying, it is vital for him or her to be capable and familiar with the industry.
Try to remain faithful to one realtor per transaction because hiring more than one consultant can result in misunderstandings and stress because most real estate agents in Singapore promote the identical portfolio.
Be honest with your realtor as to the type of property or home you are searching for, for example, measurements, location, and Le quest price. Clear directions can help your realtor lead you to the best property quickly and correctly.
A good realtor can also work as an advisor when you need any legitimate and financial tips upon purchase.
Le Quest Price
Opt for A Property
Depending on your requirements, the real estate agent will find appropriate living spaces.
When refined to the limited number, you’ll be cordially asked to see the units. While in the rounds of assessment, be aware of the fixtures, features and other specific set ups, if any. Don’t feel reluctant in discussing renovation and Le quest price. Property investment strategies are long lasting big ticket stuff; so be certain that you’re completely pleased with the unit before acknowledging the purchase.
Option to Buy / Offer to Buy
When you have your eyes on a property or home, you need to make 1% of the particular purchase price as consideration in substitution for the Option to buy from the vendor. On which, you’ll be provided fourteen days to make a decision whether you wish to buy it or not. If you opt to do so, you need to work out the option by signing it and sending it to the seller’s lawyer along with 4% to 9% of the price.
Complete The Deal
Keep things within reach of your attorney. He/she will complete your sale in 8-10 weeks by lodging a caution on the property and corresponding with the loan companies if necessary. You can check the house or property one last time before the finalization of sale if you get permission to do this with the Option to Buy.
You need to check the items of furniture of the property and the things that the vendor has agreed upon to sell with the unit. Within 2 weeks of signing the Option to Sales or the Buy and Agreement, a complete stamp duty of 3% of price needs to be paid off to Inland Revenue Authority of Singapore in case the property is higher than S$300,000.
ABSD of 15% of the price will be paid to IRAS. As the agency fee is borne by the vendor, which differs from 1% to 2% of the price, you have to pay for the legal fee. An actual one-off payment of $3,000 is due to your attorney for every financial transaction.
Submit an Application for Bank Loan
While a foreigner generates profits in foreign currency, you’ll be able to get a loan from a Singaporean loan company for up to 80% of the price. You should remember that the amount of bank loan depends upon property value by the loan companies.
From our own experience with Singapore Prime Districts, nearly all foreign debtors can get a loan of 70% of the price. Banking institutions in Singapore are well recognized for their affordable lending rates of interest which presently stand at an average of 3.5% to 4%. This is considerably less than the rate offered by other regional towns, for example, Hong Kong whose primary loan rate is 6.5%.
Document for Property Taxes
You need to file for property taxes every year after getting property ownership.
The amount due is computed by increasing the yearly price of the property with the taxes rate. AV or Annual value is taken to be the calculated annual rent payments of the property.
Let Out Your Property
If you’re buying the Le Quest property for investment purposes, take note that what are the rental results of the unit.
Your Realtor should provide you with a close approximation of the month-to-month rental of the purchase. Prime areas such as Districts 11, 9 and 10 can quite easily get you the best rental results due to desirability as well as great demand from customers. On the other hand, the IRA Organization of Singapore deals with rental as part of earnings and asks for taxes accordingly.
Authorization from the real estate authority is necessary to complete these types of procedures.
- If you’re a foreigner traveling to Singapore, do not forget that policies of purchasing property do exist. You will have to get a sponsor and a visa or submit an application for long-term
- Penalty charges for not adhering to the laws for foreigners purchasing property in Singapore is often rather serious and difficult, and if you unlawfully purchase it, you may be susceptible to heavy penalties and caning which is charged on immigration law violations.
- Generally speaking, people from other countries aren’t allowed to purchase property without a benefactor or long term residency abroad.
- Singaporean legislation doesn’t allow managements of apartments or Le Quest condo to offer a unit to foreign people without evidence of a sponsor which is authorized by the Singaporean Authorities and a legal passport with Singaporean Visa which was acquired before planned arrival or citizenship and long-term
- It’s against the law for foreign people to share a property with any Singaporean resident or permanent citizen regardless of if they’re a relative or spouse and husband. Any violation of this legislation can get you off from the unit you’re sharing, and you’ll be prone to heavy penalties with caning for immigration law violations.