Few things you need to know when you decide to buy apartment in Singapore are price, location, tenure, cash outlay, and tax. Buy apartment in Singapore is the best way to preserve and increase your wealth. It has been proven over 2 decades, Singapore property price has at least risen 3 to 10 folds. The fantastic return is contributed by extraordinary economy growth, world class infrastructure, increase of population, low unemployment rate and political stability.
Buy Apartment In Singapore - Factors to consider
You can do you own research which will take a lot of you time or you can engage property consultant to assist and share with you what is the current market price, upcoming great location to invest, latest government policy, financial calculation, and loan assistance.
First of all, we need to know what are the current market price when we want to buy apartment in Singapore. The most affordable 1 bedroom Singapore apartment with decent size cost about SGD 600,000. Sometimes there is new Singapore property launch below SGD 600,000 for studio or 1 bedroom unit. Because of the rarity, those units will receive oversubscription of cheques before preview launch. Thus, some of the buyer may not be able to get the units.
SGD 800- 1 million is a decent budget if you are looking to buy apartment in Singapore 2 bedroom units. And for the 3 bedroom, you can expect price above SGD 1 million. Do note, these price are just a guidance on what are the market is offering now but it is not a "one size fit all" formula. Some property will sell higher or lower (slim chance) depending on the location, tenure, size, and the unique characteristic of the apartment unit itself.
Singapore property location is divided into 3 regions: Core central region (prime district), Rest of central region (City fringe), and Outside of central region. Price in the core central region is the most expensive follow by the rest of central region, and outside of central region. Thus, you need to adjust your investment budget according to your desire location and unit size when you decide to buy apartment in Singapore.
Tenure - Freehold or Leasehold
In term of pricing, freehold tenure price is higher than leasehold but the location of leasehold site is usually more convenient and nearer to the MRT.
Payment and financing
After you have decided on your budget, location, and tenure of the property you want to buy, the next thing you need to know when you want to buy apartment in Singapore is how much cash outlay you need to fork out in your purchase. If you do not have any outstanding residential property loan, you can get 80% loan to value ratio. If you have 1 outstanding residential property loan, you can get up to 50% loan to value ratio. If you have 2 or more outstanding residential property loan, your maximum loan to value ratio is 40%. For details breakdown, you can refer to our buying property in Singapore article.
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Singapore property tax
Normal stamp duty tax and additional buyer stamp duty tax are 2 type of taxes you need to take note when you want to buy apartment in Singapore. Seller stamp duty tax is liable if you sell your apartment unit within 4 years from your property acquisition.
|First property||3% - SGD 5,400|
|Second property||3% - SGD 5,400 + Additional Buyer Stamp Duty of 7%|
|Third property and above||3% - SGD 5,400 + Additional Buyer Stamp Duty of 10%|
|First property||3% - SGD 5,400 + Additional Buyer Stamp Duty of 5%|
|Second property and above||3% - SGD 5,400 + Additional Buyer Stamp Duty of 10%|
|First property and above||3% - SGD 5,400 + Additional Buyer Stamp Duty of 15%|
Seller Stamp Duty Tax
|Sell within 1 years from acquisition||16% of selling price or valuation whichever higher|
|Sell within 2 years from acquisition||12% of selling price or valuation whichever higher|
|Sell within 3 years from acquisition||8% of selling price or valuation whichever higher|
|Sell within 4 years from acquisition||4% of selling price or valuation whichever higher|
|After 4 years||0%|
For more details you can refer to our Singapore property tax article
Steps to buy apartment in Singapore
- If you need loan, get your loan assessment done first. So that you know your finance better. This is to protect yourself to avoid any unnecessary issue. Usually your property agent should be able to help you linked up with the mortgage specialist.
- Once you know about your financial plan, discuss your property type, location, and any other specific requirement you have with your property agent
- After shortlisted your units, arrange to view the property
- If everything is fine, proceed with the booking of the unit