Guide to Buying Property in Singapore
Buying property in Singapore remains a great option for first-time buyers and investors, even with cooling measures still in place. Housing prices continue to fall. Prices are near a bottoming-out point that could arrive in 2017 before they start to rise in 2018 if the market continues as experts foresee.
Consider buying property in Singapore soon before the buyer’s market disappears.
Discover the ins and outs of buying property in Singapore, and read about the types of housing on the market today. Then it is time to start your journey to property ownership.
Rules and Regulations
Cooling measures initiated by the government in 2009 were designed to keep the real estate market from suffering the same fate as the American housing bubble in 2007. The government created a cap on the total debt you can incur, known as the Total Debt Servicing Ratio (TDSR) program.
TDSR states that your total debt cannot exceed 60 percent of your income. The debt includes credit cards, automobile loans and a loan for buying property in Singapore. If you have no other debt whatsoever, your monthly payment for a property loan can be as high as 60 percent of your monthly income.
The loan-to-value ratio of your first loan cannot be greater than 80 percent. When buying a property in Singapore, you can only get a loan for 80 percent of the property’s price. If you want a $1 million condo, your loan tops out at $800,000. The rest of the money you have to come up with yourself.
Even with these limits, experts believe people who could not afford property before are in a perfect position to purchase a private home now. Let’s look at the different types of private housing you can buy in Singapore today.
Private residential in Singapore covers three main types. Private residential differs from the landed property in that private residential usually, happens in one of Singapore’s many high rises. Landed property has some land attached to it, and it sits on the ground floor.
You can walk out of your landed property into a small garden or a yard with trees. On the other hand, private housing occurs when you buy a small portion of a larger building to call your own. Buying property in Singapore is still an attractive option, whether you have land attached to your home or not.
Condominiums, or condos, include luxurious facilities that act as small cities unto themselves. Beautiful condos may have a walk-through garden in the middle of two or three skyscrapers. These gardens could surround an outdoor pool. You get to play tennis on a nearby tennis court or shoot baskets on a basketball court.
Indoors, you can work out in a gym while security keeps you safe. Your condo space can be on the second floor or the 50th floor, depending on your preference for buying property in Singapore.
Condos are a big step up from a flat, and these buildings have everything you need for comfortable living. With today’s lower property prices, you do not necessarily have to rent a condo to enjoy the great life.
Apartments usually don’t have the same amenities as condos. That means they cost less money when you consider buying property in Singapore. Apartments have the same basic style as condos, with tall buildings and living spaces among a few rooms.
However, you probably don’t have the same communal feel as you do with a condo. Apartments still let you live comfortably without a pool, huge garden or tennis courts.
Apartments fall in between the costs of landed property and condos on the high end and public housing flats at the low end. Buying property in Singapore is still an excellent choice, even if you may not reach for the stars of a condo.
A walk up is an apartment without a lift in it. Every apartment in a walk-up is on the ground floor, which means you park your vehicle or stroll from the sidewalk and go straight into your apartment on ground level.
You do not have to wait for the lift to take you up 30 floors to get home. Walk-ups could cost as much as an apartment.
The process of buying property in Singapore goes like this. A real estate salesperson also works out a financial plan before referring you to a bank. A banker then approves the plan and the principal of a loan as a gauge for customers to know what price range they can afford.
Once you know the price range, you know what types of units you can view with a real estate salesperson. You figure out the finances first before going on formal viewings.
Once you get the finances down, you have several considerations ahead of you. Buying property in Singapore takes much financial preparation, but you also want to find an area that fits your lifestyle.
Do you want to be close to work? What about a particular type of primary school for your children? Do you want to live closer to other relatives? Once you figure out the answers to these questions, you can start looking for a location.
Once you find a suitable area, it is time to narrow down a particular portion of the building. Do you desire a side with west sun or not? Do you prefer a high floor or low floor? Do you want your unit facing in a particular direction? Do you feel like a place facing away from the main road?
Every unit has its unique quirks, and a real estate salesperson shortens the search period, so you do not spend much time looking needlessly.
Once you decide on a purchase, you make a 1 percent down payment to the seller in exchange for the option-to-purchase (OTP). Finalise the transaction within 14 days at an appointed law firm. Once sales transaction completes, the law firm contacts the parties involved and collect keys.
Before you move in, you can start renovating with a contractor. That way, your new property looks exactly the way you want it to your move-in date. During this period, you start moving from your old place and into the new one. A real estate salesperson can help ease the transition by suggesting a renovation contractor and a moving company to help.
Hire Your Real Estate Salesperson
When buying property in Singapore, it is an excellent idea to enlist the help of a professional real estate salesperson. A real estate salesperson knows what the market is like, the best places to live and how to get a property loan.
This professional takes you through the complicated ins and outs of TSDR, LTVs, and other rules and regulations. Most importantly, a real estate salesperson is on your side with this buyer’s market.
Dylan Tan can get you into a property you can afford. He can try to get you the best possible interest rates and loan so you can manage your budget and your life on your terms. Contact Dylan today by phone at 9456-7022 or through email.