How much do you need to buy second property in Singapore

How much do you need to buy second property in Singapore

How much do you need to buy second property in Singapore? Or even the third property? As a PR or Singaporean, you will be subjected to additional buyer stamp duty tax for your second and more property. You will also require more cash if you still have outstanding loan. Lastly, you need to set aside CPF minimum retirement sum which means you need to top up by cash if your CPF is insufficient.

So how much do you need to invest in good property near MRT in Singapore such as Park Place Residences in Paya Lebar, Atra condo in Redhill or other condo in Singapore?

Restriction For PR

If you own HDB flat and both owners are Singapore PR. Under the current policy if you intend to buy second property in Singapore, you must sell your HDB flat within 6 months upon acquiring your Singapore private property. This is actually does not help you in achieving your financial plan at all and it may cause heavier loan burden as the price of private property is much higher than your HDB flat. So what is your option? We will look through at the calculation of buying second or even third property in Singapore and see how much is the cash needed and see if is a wise investment decision.

Below is the table for stamp duty tax and min cash required

 

Total Stamp Duty Tax

Min Cash Required

SC (2nd property)

10% less SGD 5,400

25% (if still have existing loan)

SC (3rd property and more)

13% less SGD 5,400

25% (if still have existing loan)

SPR (2nd property and more)

13% less SGD 5,400

25% (if still have existing loan)

Buy second property in Singapore

Assuming price for 1 bedroom is SGD 750,000

Minimum cash required 25% if have existing loan: SGD 187,500

Assuming you have sufficient CPF for the remaining 25% down payment in your Ordinary Account (after reserving SGD 83,000 CPF basic retirement sum for year 2017)

Total stamp duty tax 10% of property price less SGD 5,400: SGD 69,600

Total cash required: SGD 257,100

50% loan with 30 years tenure and average 1.7% interest rate, monthly instalment: SGD 1,335

Assuming average rental 3%: SGD 1,875

Positive cash: SGD 540 per month before tax and monthly maintenance fee

Buy third property in Singapore

Assuming price for 2 bedroom is SGD 1,000,000

Minimum cash required 25% if have existing loan: SGD 250,000

Assuming you have sufficient CPF for the remaining 25% down payment in your Ordinary Account (after reserving SGD 83,000 CPF basic retirement sum for year 2017)

Total stamp duty tax 13% of property price less SGD 5,400: SGD 124,600

Total cash required: SGD 374,600

50% loan with 30 years tenure and average 1.7% interest rate, monthly instalment: SGD 1,775

Assuming average rental 3%: SGD 2,500

Positive cash: SGD 725 per month before tax and monthly maintenance fee

So, do you think you are making a wise investment decision and happy with the Gross positive cash flow? What if interest rates going up?

Comparing to the one below, which one is more attractive?

Freehold property

Price: SGD 150,000

Stamp duty 4%: SGD 6,000

Total cash required: SGD 156,000

Guarantee rental 6% NETT per annum for Year 1 – 5: SGD 750 per month

Guarantee rental 8% NETT per annum for Year 6 – 10: SGD 1,000 per month

The NETT rental above is after taxes and maintenance fee; it means monthly positive cash flow SGD 750 – 1,000 and property is fully paid.

Who guarantee the rental? Oxley Holdings Limited, Singapore homegrown property developer. Public listed in SGX with total market capital over SGD 1 billion.

Oxley property development portfolio includes residential, commercial, and industrial project. Completed and on progress property development in Singapore including but not limited to The Rise @ Oxley, Flora Vista Floraview, Eco-Tech, Floraville, The Flow, Newest, KAP & KAP residences, Oxley tower, Robinson square and many more

 

1 Bedroom SG (2nd property)

2 Bedroom SG (3rd property)

Better option

Cash needed

SGD 257,100

SGD 374,600

SGD 156,000

Loan

50%

50%

0 (No worry on rising interest rates)

Income per month

SGD 540 (Gross)

SGD 725 (Gross)

SGD 750-1,000 (Nett)

The better option requires less cash, no burden on loan, and gives higher rental return. Which one will you choose? Many Singaporean and PR have chosen the better option.

Top 12 reasons why many Singapore investors have invested in the better option

  • Freehold – You own it
  • Public listed Singapore developer, Oxley Holdings – Peace of mind
  • High rental guarantee by the developer in total 70% – It shows developer confidence
  • Year 1 – 5: Nett 6% per annum; Year 6 – 10: Nett 8% per annum; Year 11 – 15: Renewal subject to mutual agreement between developer and owner
  • Guarantee rental yield provided is Nett after tax and maintenance fee
  • Fully managed by world class hospitality management company (Metro Global) which developer engaged to make sure everything is in order.
  • With NETT guarantee rental and fully managed it means hassle free investment for investors like yourself – Don’t have to worry of broken washing machine, light bulb, etc.
  • You invest in the best (Blue Ocean) market segment – Freehold shop and restaurant in high end shopping mall.
  • It is the only shop and restaurant available for investment, the rest are only for lease – It means you are in the same level with the big developers. It also gives high potential capital appreciation when you want to sell due to low supply.
  • Located in most prime shopping district area in Cambodia, Phnom Penh. Walking distance to 5 stars hotel and casino; Naga World, AEON mall (100% tenanted), upcoming 5 stars Shangri-La hotel, and more
  • Return is paid in US Dollar – Safe haven currency
  • Much lower cash outlay compare to investing in Singapore – Your additional stamp duty tax in Singapore may cover almost the whole payment

I am Interested In The Better Option, Please Contact Me





Cash Investment Plan: SGD 150K - 200KSGD 200K - 250KSGD 250K - 300KAbove SGD 300K

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