As the property market in Singapore continues to thrive, investors are constantly on the lookout for opportunities to diversify their portfolios and pursue wealth-building strategies. 

Strata-titled private properties, such as condominiums or apartment developments, and strata-titled landed properties such as townhouses and cluster houses offer a range of benefits that draw the attention of buyers and investors. However, as is the case with any investment opportunity, the advantages also come with drawbacks that warrant careful assessment. 

In this article, we will explore the pros and cons of investing in strata-titled private properties in Singapore, equipping prospective buyers with the knowledge needed to make informed decisions and maximise their investment potential. Additionally, we will go over key points that help you decide whether or not this property type is the ideal option for you.   

Owning a Strata-Titled Property in Singapore 

Strata-titled private properties, such as apartments and condominiums, are some of the most prevalent property types in Singapore. In a strata-titled property, the ownership is divided into individual units, accompanied by shared ownership in communal areas within the development. 

Buyers acquire the ownership of a specific unit type, with choices ranging from studio apartments to 2,3 and 4-bedroom condos depending on their personal needs and preferences. This ownership refers to the owning of the strata space occupied by the unit itself, and not the land that it is built on. Along with this, owners have joint ownership of the facilities and common areas such as swimming pools, gyms, BBQ pits, function rooms and gardens within the development. That also means that they have to pay a monthly or quarterly fee for the maintenance and upkeep of the facilities and common areas. 

Similarly, for strata-titled landed properties, which include townhouses and cluster houses, residents get the unique mix of living in a landed house while having access to amenities and services that are associated with living in condominiums. Like with strata-titled private properties, cluster houses and townhouses within a development are subject to the management and its regulations.     

Advantages

Living in strata-titled private and landed properties offers residents several benefits ranging from security and maintenance to these property types being a good option for a rental income. 

Security

Strata-titled developments typically have several security measures in place to ensure the safety of residents. This includes CCTV surveillance cameras, 24-hour security guards at the entrance, and access control systems like key cards that residents can use to enter elevators and common areas along with their homes. These measures give residents a sense of security and safety, making it a good choice for homeowners and tenants.      

Facilities and Amenities

Strata-titled properties typically come with a wide range of facilities and amenities available for residents to use. These encompass a diverse selection, ranging from gyms, landscaped gardens, swimming pools, and saunas, to vibrant playgrounds, BBQ pits, and ample parking spaces. These amenities not only enhance the overall quality of life for residents but can also potentially boost the property’s value, contingent upon the type and quality of amenities available.

Maintenance and Management

Another advantage of a strata-titled property is that the management of common areas within these developments is taken care of by a committee. This ensures that all of the common areas, facilities and amenities are well-maintained throughout the year. 

In comparison to a landed property where homeowners have to be fully responsible for the maintenance of any additional amenities, the management of strata-titled properties relieves residents of the responsibility and burden of taking care of these areas individually.

Income Source 

Strata-titled properties can also be a good income source for investors in Singapore’s robust rental market. The desirable amenities, security measures, and factors such as the convenient locations of these properties can often attract tenants. This can enable homeowners and investors to generate rental returns and, in some cases, offset the monthly mortgage of their property.  

Disadvantages

High Maintenance Fees

While residents of strata-titled properties benefit from having a range of amenities and facilities within the development, this does come with maintenance fees. Additionally, the maintenance fees cover the cost of maintenance, repairs and management services. These fees, depending on the type of amenities offered, can be high.  

Lack of Control

Another factor that can be a disadvantage for buyers of strata-titled properties is the lack of or limited control over certain decisions that are made within the development. Individual owners cannot make decisions without a collective agreement when it comes to these spaces. 

Moreover, decisions regarding the management and maintenance of the common areas are typically made by the project’s Management Corporation Strata Title (MCST), a legal entity that is responsible for managing the shared areas of the development. 

No Land Ownership & Leasehold Tenure

One more potential downside of this property type is the lack of land ownership. As a strata-titled property owner, you will have complete ownership of an individual unit, along with part ownership of the common areas. However, unlike with landed homes, homeowners do not have ownership of the land the development is built on. As such, the ability to make decisions about the land depends on the developers or any appointed authority. 

Many strata-titled properties in Singapore are leasehold in nature, many of which have a 99-year tenure. The limited lease duration can impact the property’s value and its potential resale value in the future, as the Bala’s Curve dictates that a leasehold property will lose its value over time until it reaches zero when the lease runs out. This is a factor buyers and investors must keep in mind when looking at strata-titled properties for long-term investments. 

Closing Thoughts: Is Strata Living The Right Choice For You?

Strata living comes with its own set of pros and cons, and may or may not be the ideal choice for everyone. Factors such as your lifestyle, preferences and long-term goals play a significant role in deciding whether strata-titled properties are a sound investment option for you. 

As we discussed previously, the level of involvement and control homeowners have in condo and apartment developments is not the highest as there is a lot of collective decision-making involved. For individuals who value autonomy in every aspect of the decision-making process related to the management and maintenance of all areas of their property, strata properties may not be ideal.  

On the other hand, individuals who prioritise the convenience that comes with amenities and a sense of community might find strata-titled properties to be a good choice. Strata-titled properties offer residents a range of amenities and attractive facilities such as pools, gyms and gardens that would otherwise be expensive to maintain on a landed property. 

Ultimately, the decision to opt for investing in strata-titled properties depends on an individual’s lifestyle, preferences, needs and financial standing. It is essential to weigh the pros and cons, taking into consideration factors such as privacy, decision-making, the availability of desired amenities and facilities, and investment plans. 

Investing in a new property is a big step in your property journey. If you are looking to diversify your property portfolio and want guidance or have any questions regarding strata-titled properties in Singapore, feel free to reach out to us here.

Until next time, see you!

The post Investing in Strata-Titled Private Properties: Pros and Cons for Buyers in Singapore appeared first on Insights by PropertyLimBrothers.

Selling a property is a lot like launching a product in the market. However, this product is a huge tangible product that cannot move and cannot be brought to the customers – it is fixed in a specific location. This means that customers need to take the time and effort to travel down to view this physical product. And because this product is such an expensive and important asset to a buyer, it should be launched and marketed to its fullest potential, which involves a lot of effort and pre-planning to effectively find the right buyer that will fall in love with it.

A common question we get during our client presentations is whether a home tour video is necessary. While we pride ourselves as the pioneers of presenter-style home tour videos which has become our bread and butter, if home tours are not useful or effective, we would not have done hundreds of PropertyLimBrothers Signature Home Tour videos to date for our clients to sell their properties as one of the key element content in the entire spectrum of the marketing campaign. 

In this article, we explore 6 reasons why our Signature Home Tour videos can help property sellers fetch a higher price and exit their properties faster.

1. The Story Effect

The art of storytelling transforms a property into an evocative narrative through the creation of captivating home tour videos. These visual stories not only display the property’s highlights but also engage the audience in a way that still photography cannot. While a photograph may possess an untold backstory, without narration, its deeper qualities and unique attributes remain unappreciated. 

Recalling an anecdote from Paul Smith’s book, ‘Sell with a story’, where he and his wife were fascinated by an underwater photograph of a pig. They were unaware of its rich backstory until the artist, Chris, recounted the tale of the swimming pigs on an island, a skill acquired as a means to reach food discarded by a local restaurateur. This revelation transformed their perception of the image, prompting an immediate purchase.

This resonates with real estate sales. Why should we risk a sale by leaving a property’s story untold? Indeed, one might wish to achieve high sales with minimal effort, but our experience over the years has shown that innovation is key. In the past, the marketing mix was limited to newspapers and then online portals, which felt monotonous over a decade. However, by incorporating narrated home tours with presenters in late November 2016, we witnessed a tangible shift in the outcomes. This approach has reinvigorated the real estate market, injecting excitement for both buyers and sellers alike.

2. Bringing Homes to Buyers

The creation of digital content allows us to make properties virtually accessible to everyone via their smartphones. What was once considered an immovable asset can now reach potential buyers anywhere, thanks to the engaging content we craft that showcases these properties right on their devices. This enables buyers to explore, visualise, and interact with properties before deciding whether to visit in person.

Our data from the past few years underscores the effectiveness of this strategy. A substantial 70% of prospects who attend our property viewings were first captivated by our video content on social media. The remaining 30% found us through traditional property listing platforms. This dynamic marketing approach is largely why we managed to sell a total of 999 properties (across different market segments) between 2020 and the time of writing.

By shifting from a passive to a proactive marketing stance, dubbed an ‘Active’ or ‘Aggressive Campaign’, we don’t simply wait for potential buyers to discover our listings; we actively ensure our properties garner attention. By strategically investing in social media platforms, we greatly enhance the visibility and appeal of our listings.

This is why we dedicate so much energy and resources into continuously producing content for our YouTube, Instagram, and Facebook channels. Our passion for real estate drives us to revolutionise property marketing in Singapore. We’re excited about the potential of the real estate market here and are committed to our vision of transforming it.

Through building a reliable channel with consistent, quality content, we’ve cultivated a growing trust with our audience. New listings on our channels generate more interest and shareability than others. This trusted relationship not only benefits our audience but also significantly amplifies the reach and appeal of the properties we represent.

3. Expanding Possibilities & Buyer Pool

The use of video content allows potential buyers to broaden their search horizons beyond their initial criteria. For instance, a homebuyer might be solely focused on acquiring freehold properties. However, after viewing a home tour video, they might discover that a 99-year leasehold property can offer a wealth of advantages and unique benefits that freehold properties lack, especially if it aligns with other specific location-based preferences they have. 

The home tour thus serves as a medium to open up a buyer’s options, helping them to consider a wider range of properties that they may have previously overlooked.

4. Putting Your Property In The Best Light

Home tour videos evoke a sense of comfort and appeal, touching upon the emotive aspects of purchasing a home. While practical criteria and logic certainly play roles in the decision-making process, the sensory and emotional experiences are crucial, particularly for a residence that one intends to inhabit. It’s about the connection that is forged the moment one steps into a space they can envision as their own sanctuary.

Executing a home tour requires meticulous preparation and attention to detail. Sellers and real estate professionals collaborate closely to curate the environment, engaging in decluttering, arranging, and staging akin to setting up a showflat unit. This is grounded in the belief that every property can reach its fullest potential, and it’s our duty to ensure this is achieved, thereby benefiting both sellers and buyers. Presenting a property at its finest is essential, allowing viewers to see beyond trivial imperfections (e.g cluttered room or toys lying around) and focus instead on the property’s inherent value and possibilities.

5. Drawing Genuine Buyers, Not Shoppers

Consider the all-too-common scenario where the sale process begins and potential buyers are surprised upon their visit — unaware that the home has only three bedrooms, is situated on a lower floor, or lacks storage space. Such revelations are a source of frustration for everyone involved: the seller, the buyer, and the realtor, as it leads to wasted time and effort.

A well-crafted home tour mitigates these issues. It’s more than a mere video; it’s a storytelling art form that comprehensively represents the property. It ensures that buyers have a transparent view of the home’s features and flaws before they step through the door. This clarity streamlines the process, ensuring that only genuinely interested and informed buyers commit to viewings, enhancing the quality and efficiency.

6. Experiential Process & Emotional Appeal

Creating home tours is not just our profession; it’s a source of enjoyment for us. We’re passionate about real estate, we delight in showcasing properties, and we revel in the act of storytelling through our home tours. This enthusiasm is something we aim to spread to our viewers as well. 

After all, a home is more than just a physical space—it’s the epicentre of excitement and life. It’s where families come to life, where children’s laughter echoes through the halls, where we find sanctuary and comfort after the day’s challenges. It’s a tapestry of joy, love, and even moments of sadness—all woven into the fabric of our experiences. Our fervour for producing home tours reflects this sentiment; it’s an extension of our creative spirit as real estate marketers dedicated to bringing these stories to life.

Closing Thoughts

In conclusion, our signature home tour videos have revolutionised the property-selling experience, not just for buyers, but for sellers as well. Our immersive and emotionally engaging videos serve as the modern-day storytelling canvas, presenting properties in their best light. With a proven track record of capturing the unique spirit of each home, they expand the reach to potential buyers, often leading to quicker sales and at higher prices.

By artfully combining the sensory allure of videography with the informative clarity of a presenter-style tour, we ensure that properties resonate with viewers on a deeper level. Each home tour is crafted with precision, passion, and a deep understanding of the emotional and practical considerations that drive the decision to purchase a home.

For sellers looking to elevate the presentation of their property, reduce unnecessary viewings, and command a premium price, our home tours are the quintessential tool in your real estate arsenal. Our dedication to innovation in real estate marketing means that your home is not just seen but truly experienced by potential buyers, even before they step through the door.

Don’t let your property blend into the background of a crowded market. Let us help you stand out. Contact us here today to see how our signature home tours can translate into successful sales for you. Your journey to a swift and profitable sale starts with just one call. PropertyLimBrothers, always happy to show you the place.

The post PLB Signature Home Tour Videos: Why Home Tours Can Sell Homes Better & Faster For Sellers appeared first on Insights by PropertyLimBrothers.

1) Not Understanding Singapore’s Residential Property Market

2) Not Engaging a Qualified Property Agent

3) Not Checking the Property’s Title

4) Not Factoring in Additional Costs

5) Not Understanding the Financing Options

6) Not Having an Exit Plan

8) Not Considering Resale Value

Closing Thoughts

The post Top 7 Mistakes Foreign Buyers Should Avoid When Buying Residential Property in Singapore appeared first on Insights by PropertyLimBrothers.

Singapore is one of the most sought-after locations for property investments in Southeast Asia, thanks to its stable economy, high living standards, and cosmopolitan culture. However, foreign buyers who are interested in purchasing a property in Singapore must take note of the various taxes and fees that they are required to pay. These taxes are imposed by the government to regulate the property market and ensure that it remains affordable for Singaporean citizens. Understanding these taxes is essential for foreign buyers to make informed decisions and avoid any unexpected costs.

In this article, we will delve deeper into the taxes that foreign buyers have to take note of when purchasing a property in Singapore. We will be breaking these taxes down in terms of the type of properties in question.

Residential Property Taxes

Residential property in Singapore refers to any type of property that is designed and intended for individuals or families to live in. This includes apartments, condominiums, landed properties such as bungalows and terraced houses, as well as HDB (Housing and Development Board) flats.

In Singapore, residential properties are highly sought after due to the city-state’s limited land area and high population density. As such, the residential property market in Singapore is highly competitive, with prices that can vary greatly depending on factors such as location, size, and amenities.

Buyer’s Stamp Duty (BSD)

The first tax that foreign buyers should take note of is the Buyer’s Stamp Duty (BSD). The BSD is a tax levied on all property purchases in Singapore. As the name suggests, only the buying party has to pay this tax. The BSD amount is calculated based on the purchase price mentioned in the document or the market value of the property, whichever is higher. In the recent Budget 2023, it was announced that BSD rates for higher-value residential and non-residential properties would be raised with effect from 15 Feb 2023. Below are the current BSD rates for residential properties, as at the time of writing.

It is important to understand that the Buyer’s Stamp Duty (BSD) is not a flat tax but a progressive one. This means that the percentage rates of BSD will be applied to different market value brackets of the property being acquired, tabulated up to the full purchase or valuation price. To make this clearer, let’s take an example:

Additional Buyer’s Stamp Duty (ABSD)

For foreign buyers who are not permanent residents, an additional tax called the Additional Buyer’s Stamp Duty (ABSD) will be levied on any residential property purchase.

In response to the surging demand for residential properties in Singapore’s real estate market, the government implemented the ABSD in 2011. This measure is intended to cool down the property market and manage the demand.

It is crucial to note that ABSD is exclusively applicable to residential properties, and the rates vary depending on the residency status of the buyer. In December 2021, the latest ABSD rates were announced, and the current rates are as follows:

• For SPRs, a 5% ABSD is mandatory for their first property, 30% for their second property, and 35% for their third and subsequent properties.
• Foreign buyers who are not SPRs, are required to pay a flat rate of 60% ABSD on all properties they acquire.

Below is a comprehensive table comparing the ABSD rates for different residency statuses. Foreign buyers need to take note of these rates as they can significantly impact the overall cost of buying a property in Singapore.

Annual Property Tax

Property tax is a wealth tax levied on the ownership of properties, regardless of whether the property is occupied or vacant. However, to encourage home ownership, the rates for owner-occupier residential properties are set lower than that of non-owner-occupier residential properties and non-residential properties. Owner-occupier residential properties are residential properties where the owner lives in the property.

Property tax is calculated by a progressive tax model, and the amount payable is calculated by multiplying the tax rate with the annual value (AV) of the unit. The AV of a property is derived from an estimate of the potential rental income it could generate if leased out, taking into account the current market value of comparable properties.

Because of the rise in market rents, the AVs of properties have increased. To reflect this trend, the authorities have revised the property tax rates for 2023 and 2024. Below is a concise table showing the owner-occupier tax rates.

As mentioned, the annual property tax is a progressive tax model. Below is an example of the property tax payable for a residential property with an AV of $84,000.

Seller’s Stamp Duty (SSD)

In order to prevent the flipping of properties in Singapore, the Seller’s Stamp Duty (SSD) is levied on residential properties that are sold within 3 years of acquisition. Similar to the BSD, SSD rates are based on the selling price or current market value of the property, whichever is higher.

The current SSD rates are as follows:

However, foreigners are exempted from SSD when they have to sell their residential properties in Singapore as required under the Residential Property Act. For example, under the Residential Property Act, a foreigner is required to obtain approval from the Singapore Land Authority (SLA) before acquiring certain types of residential property, such as landed property. If a foreigner acquires landed property but fails to obtain the requisite approval, they would then have to sell the property. When doing so, SSD will not apply.

Non-Residential Property Taxes

Non-residential property in Singapore refers to any property that is not intended for residential use. This can include commercial buildings, industrial facilities, retail spaces, and office spaces. Non-residential properties are generally used for business purposes, such as manufacturing, trading, or providing services.

Commercial properties, for instance, are often used for retail or office purposes, while industrial properties are used for manufacturing or production. Retail spaces are typically used for businesses that require a physical storefront, such as shops or restaurants, while office spaces are used for businesses that require administrative or professional workspaces.

Non-residential properties in Singapore are subject to different regulations and taxes than residential properties.

Not Applicable: Additional Buyer’s Stamp Duty (ABSD)

One of the biggest advantages of investing in non-residential properties in Singapore as a foreigner is that the ABSD does not extend to commercial and industrial properties. Unlike residential properties, foreign buyers of commercial and industrial properties are not obligated to pay an upfront ABSD fee, which is set at 60% of the purchase price for residential properties.

This exemption is particularly advantageous as it allows foreign investors to invest in these types of properties without the burden of a substantial tax liability, which is often a significant barrier to entry for residential property buyers.

Furthermore, it provides foreign investors with greater flexibility to diversify their investment portfolios and allocate their capital to various asset classes. By offering this exemption, Singapore is providing foreign investors with an attractive opportunity to invest in the country’s commercial and industrial property sectors and enhance their investment strategies.

Buyer’s Stamp Duty (BSD)

Similar to residential properties, the Buyer’s Stamp Duty (BSD) is applicable for non-residential properties as well. However, the rates are slightly different. Below is a table showing the latest BSD rates for non-residential properties:

The BSD for non-resident properties is also a progressive tax, which means that the percentage rates will be applied to different market value brackets of the property being acquired, tabulated up to the full purchase or valuation price (whichever is higher).

Goods & Services Tax (GST)

When purchasing a commercial property from a company that is registered for Goods and Services Tax (GST), buyers must pay GST, which is currently set at 8%, on the purchase price. However, if the buyer themselves is also registered for GST, they can claim back the amount paid. Conversely, if the buyer is not registered for GST, they must pay the full amount without the possibility of a rebate. This factor should be carefully weighed in the overall investment decision, as it can impact the total cost of the property.

It is important to keep in mind that if the property is subject to GST, the same tax will also be applicable to the rent collected from that property. Thus, investors need to be aware of this additional expense and incorporate it into their financial projections.

Looking towards the future, it is vital to note that the GST rate is set to increase by 1% in 2024, bringing the total up to 9% GST. This upcoming change should also be taken into consideration when assessing the overall costs associated with the investment.

It is crucial to follow the law regarding GST, as collecting GST on the rent of a commercial or industrial property when not registered for it is illegal and considered a criminal offence. Therefore, it is essential to be aware of the applicable regulations and ensure compliance to avoid any legal repercussions.

Seller’s Stamp Duty (SSD) for Industrial Properties

Short-term sale of industrial properties will be subjected to the Seller’s Stamp Duty (SSD). This applies to industrial properties (warehouses, factories, etc.) but not commercial properties (offices, shops, medical suites, shophouses) and is a key factor that distinguishes these two types of non-residential property. Below is a breakdown of the current SSD rates for industrial properties.

Annual Property Tax

Like residential properties, non-residential properties are also subjected to property tax. Non-residential properties are subjected to a flat tax of 10% of the AV. Owner-occupier tax rates will not apply to non-residential properties even if bought for own use or occupation.

Below is an example of the property tax payable for a non-residential property with an AV of $54,000.

Closing Thoughts

In summary, the property tax applicable for foreign buyers in Singapore is an important consideration for those looking to invest in the Singapore’s real estate market. With tax policies such as ABSD and other restrictions for foreign buyers, it has become more challenging for foreigners to purchase properties in Singapore. However, these measures have been put in place to ensure that the housing market remains stable and accessible for Singaporeans. 

Despite the tax policies, Singapore remains an attractive destination for property investments due to its strong economy, political stability, and strategic location. Overall, the property tax policies may act as a deterrent for some foreign buyers, but for those who are willing to navigate the tax landscape, the rewards of investing in Singapore’s property market can be significant.

If you need help navigating the property landscape in Singapore, do not hesitate to reach out to us here for guidance or a second opinion.

Disclaimer: The information provided in this article is accurate as of the date of publication and is based on the rules and regulations concerning stamp duty rates and taxes in effect at the time. While we strive to update our past articles diligently, please be aware that tax laws and regulations can change frequently, and it is essential to verify the most current rules and guidelines from the relevant government authorities or consult with a qualified professional for the latest updates and accurate advice.

The post From ABSD to SSD: A Deep Dive into Singapore’s Property Tax Landscape for Foreign Buyers appeared first on Insights by PropertyLimBrothers.

Singapore is one of the most popular destinations for expats and foreign investors due to its stable political climate, strong economy, and strategic location in Southeast Asia. As a result, our city-state has attracted a large number of foreigners who are interested in investing in its real estate market. However, buying property in Singapore as a foreigner can be a complex process, as there are various rules and regulations that govern foreign ownership. If you are a foreign buyer or investor looking to purchase a property in Singapore, we invite you to read our step-by-step guide of the whole process. 

In this article, we will explore the types of properties that foreigners can buy in Singapore and the regulations surrounding foreign ownership of property. 

Residential Properties: Residency Status Matters

When it comes to buying a residential property in Singapore, residency status matters. According to the Residential Property Act, foreigners are permitted to own residential properties here, albeit with some limitations. Notably, there is a significant disparity between a Singapore Permanent Resident (SPR) and a foreign buyer (non-SPR), where SPRs are afforded the opportunity to purchase housing from both the public and private housing market, contingent upon certain eligibility criteria. Conversely, non-SPRs are only able to purchase properties from the private housing market. 

This distinction underscores the importance of understanding the specific regulations surrounding foreign ownership of residential properties in Singapore.

In the next sections, we will break down the residential property market into public housing and private housing, highlighting which types of properties are available to foreigners and the various restrictions and eligibility criteria.

Public Housing

In Singapore, public housing refers to HDB (Housing & Development Board) flats – these are primarily flats that the government has set aside for Singapore Citizens. New HDB flats can be purchased via public housing schemes such as the Build-to-Order (BTO) or Sale of Balance Flats (SBF) exercises. Older HDB flats bought from the open market are known as resale HDB flats. New launch Executive Condominiums (ECs) also fall under this category, until they pass their 5-year Minimum Occupation Period (MOP). ECs become available to PRs after 5 years, and will be fully privatised and available to foreigners after 10 years. 

Foreigners who are not PRs will not be eligible to buy HDB flats – that is, if they are buying alone. When it comes to foreigners buying a property jointly with others, their residency statuses can have a significant impact on the types of properties they are eligible to purchase. Different groups of individuals are subject to varying levels of restrictions, depending on their residency status. Below is a table showing the various combinations.

If both parties of the couple are SPRs, they may be eligible to purchase a resale HDB flat under the Family or Fiancé Scheme, provided that they have held their PR status for at least three years. Additionally, they can opt to buy resale ECs that have already fulfilled their 5-year MOP, or ECs that are more than 10 years old.

If one of the purchasers is an SPR and the other a foreigner, they can buy resale ECs that have already fulfilled their 5-year MOP as well as fully privatised ECs that are over 10 years old.

A couple consisting of two foreigners who are not SPRs are only allowed to purchase ECs that are more than a decade old. Unfortunately, there are no additional privileges granted to them.

Lastly, in cases where at least one of the couple is a Singapore Citizen (SC), more options become available. A SC and SPR couple can ballot for a Build-to-Order (BTO)/Sale of Balance Flats (SBF) flat or buy an HDB flat or EC from the resale market. Meanwhile, a SC and foreigner couple can also ballot for a BTO/SBF flat, but will only be limited to purchasing 2-room Flexi flats in non-mature estates. For more information, you may refer to the HDB website for the guidelines. 

Private Housing

Private housing in Singapore refers to residential properties that are owned and developed by private developers or individuals, as opposed to public housing that is built and managed by the Housing and Development Board (HDB) or the Urban Redevelopment Authority (URA). Private housing can take the form of apartments, condominiums, landed houses, and ECs, and is generally considered to be more upscale and luxurious than public housing.

Singapore has a welcoming policy towards foreign homebuyers, particularly in the private housing market, where fewer restrictions apply to their residency status. Unlike public housing, foreigners looking to purchase a private residential property are not limited by location, and their residency status will only affect the Additional Buyers’ Stamp Duty (ABSD) rates that they have to pay. They are also not subjected to the MOP before renting out or selling the properties they own in Singapore.

Below is a table that summarises the types of private residential properties that foreigners are eligible to purchase. 

Foreign investors who are interested in purchasing landed properties in Singapore are required to first seek approval from the Land Dealings Approval Unit (LDAU) of the Singapore Land Authority (SLA). 

The application process for approval is assessed on a case-by-case basis and takes into consideration several factors such as the applicant’s permanent residency status in Singapore for a minimum of five years and their economic contributions to the country, such as their employment income that is taxable in Singapore. The only way to bypass the approval process is by buying a leasehold landed property with seven years or less remaining lease. Such properties can be bought without SLA approval.  

Coming to the restrictions, foreign buyers purchasing a landed residential property are restricted to those that do not exceed 15,000 sqft and are not located within a good class bungalow area. Those who wish to purchase such properties will be subject to much more stringent qualifying criteria.

On the other hand, the criteria for purchasing properties in Sentosa Cove are less stringent, albeit still requiring the LDAU’s approval. Foreign buyers only need to use the property solely for their own occupation and that of their family members as a dwelling house, and not for rental or any other purpose. The only limitation is that the property must not exceed 1,800 sqm in size.

Non-Residential Properties: Diversification of Portfolio

In recent years, Singapore has seen a growing interest in non-residential properties as a key investment opportunity for foreign investors. With a highly developed economy, stable political climate, and business-friendly environment, Singapore offers a wealth of opportunities for investors seeking to diversify their portfolios through non-residential property investments.

Non-residential properties in Singapore include a diverse range of asset classes such as commercial offices, retail spaces, commercial shophouses, industrial facilities, and hospitality properties. These properties offer investors a chance to tap into Singapore’s economy, which has seen consistent growth in recent years. Additionally, the government has implemented various policies and initiatives to support the growth of these sectors, such as the development of new business parks, improved infrastructure, and tax incentives. 

One major advantage of investing in commercial and industrial properties is that the ABSD does not apply. Unlike residential properties, foreign investors purchasing commercial or industrial properties are not required to pay an initial ABSD, which is currently set at 30% of the purchase price for residential properties. In essence, this provision makes commercial and industrial properties in Singapore more accessible and appealing to foreign investors, as they are not required to factor in the significant ABSD costs in their investment decisions.

For more on the pros and cons of investing in commercial and industrial properties, do check out this article.

Closing Thoughts

In summary, Singapore offers a diverse range of properties that foreigners can purchase, including condominiums, landed homes, and commercial properties. While the process of buying a property as a foreigner in Singapore can be daunting with various restrictions and regulations in place, there are many resources available for you to do your research before making your property decisions. 

If you have any questions about the process or would like guidance in navigating the market, we invite you to reach out to our PropertyLimBrothers team. Our experienced and knowledgeable team can provide you with the latest market trends and analyses, as well as advise you on whether your investment would be prudent and where the best opportunities lie.

We understand that investing in real estate can be a significant decision, and our team is committed to providing you with the support you need to make informed choices. Contact us today to learn more about how we can help you achieve your real estate goals in Singapore.

The post What Types of Properties Can You Buy as a Foreigner in Singapore? appeared first on Insights by PropertyLimBrothers.

Singapore is a thriving hub of business and commerce in Southeast Asia, with a highly developed economy and a robust real estate market. For foreigners looking to invest in property in Singapore, there are a range of options available, including commercial and industrial properties. Commercial properties include offices, retail spaces, and other business premises, while industrial properties are typically used for manufacturing, storage, and other industrial purposes.

However, the decision to invest in commercial or industrial properties can be a complex one, with a range of factors to consider, including market trends, investment goals, and local regulations. In this article, we will explore the pros and cons of investing in commercial or industrial properties in Singapore as a foreigner, and provide practical advice on how to make the most of your investment. We will examine the current state of the Singapore property market, including key trends and developments, and provide insights into the unique challenges and opportunities facing foreign investors in this dynamic and competitive market.

Whether you are a seasoned property investor or a first-time buyer, this article will provide valuable insights and practical tips to help you make an informed decision about investing in commercial or industrial properties in Singapore. By understanding the key factors that influence property investment in Singapore, you can maximise your investment potential and achieve your financial goals in this vibrant and dynamic city-state.

Why Look at Commercial or Industrial Properties in the First Place?

An important factor to consider when investing in commercial or industrial real estate in Singapore is the Additional Buyer’s Stamp Duty (ABSD). ABSD is a tax imposed by the Singapore government on buyers purchasing residential properties, including apartments, condos, and landed homes. The purpose of ABSD is to regulate the residential property market by curbing demand and controlling property prices, particularly for foreign demand which might inflate property prices in Singapore.

However, it is worth noting that ABSD does not apply to commercial and industrial property investments for foreigners. This means that foreign investors who purchase commercial or industrial properties in Singapore are not subject to ABSD, which can significantly reduce the overall cost of investment. In contrast to residential properties, foreign buyers of commercial and industrial properties are not required to pay an upfront ABSD, which is 60% of the purchase price for residential properties as of April 2023.

The exemption of ABSD for commercial and industrial property investments is seen as an attractive incentive for foreign investors who are seeking to invest in Singapore’s property market. This is because the exemption allows foreign investors to invest in commercial and industrial properties without incurring a significant tax burden, which can be a barrier to entry for many residential property buyers. In addition, it provides more flexibility for foreign investors to diversify their investment portfolios and allocate their capital to different asset classes.

However, it is important to keep in mind that there are still other taxes and fees associated with investing in commercial and industrial properties. For instance, property tax is imposed on all property owners in Singapore and is calculated based on the annual value of the property. Additionally, Seller’s Stamp Duty is payable on the short-term sale of industrial properties. This Seller’s Stamp Duty applies to industrial properties (warehouses, factories, etc.) but not commercial properties (offices, shops, medical suites, shophouses) and is a key distinguishing factor between these two types of non-residential property. 

This greatly affects the investment flexibility. Most investors would favour commercial properties unless they are planning to use the industrial property for the purposes of their own business. Therefore, foreign investors should carefully consider the overall costs and benefits of investing in commercial or industrial properties in Singapore, taking into account the various taxes and fees associated with such investments.

In summary, the ABSD exemption for commercial and industrial property investments is the key distinguishing factor when it comes to making these investments more attractive than residential properties to foreign investors. Even for local investors, commercial and industrial properties would be another avenue to owning multiple properties without incurring ABSD.

The Benefits of Investing in Commercial or Industrial Properties in Singapore

Investing in commercial or industrial properties is an attractive option for many investors due to a variety of reasons. Firstly, commercial and industrial properties generally offer higher rental yields (~5%) when compared to residential properties (~2-3%). Businesses and industrial tenants usually sign longer leases and are willing to pay higher rents for properties that can support their operations, making them a more compelling option for investors looking for a steady stream of rental income. 

Moreover, investing in commercial and industrial properties can provide an additional layer of diversification to an investor’s portfolio. These types of properties have a different risk profile compared to residential properties, and can offer a hedge against market volatility. As a result, they are popular options for investors who are looking to diversify their investment portfolio. Do note that diversification for diversification’s sake may also have a chance of hurting performance without meaningfully reducing your portfolio risk.

In addition, commercial and industrial properties also have the potential for capital appreciation over the long term. Singapore is a thriving hub of business and commerce in Southeast Asia, and as the city-state continues to grow and develop, demand for commercial and industrial space is likely to increase. This is expected to drive up prices and lead to potential capital appreciation for investors. On this aspect, investors would need to be keenly aware of the sectors that Singapore is known for. The preferences of these businesses on their operating locale will determine not only the capital appreciation but also the rental yield. Thus, the choice of location and type of commercial or industrial property seriously matters

Furthermore, commercial and industrial tenants often have greater stability compared to residential tenants. Businesses and industrial tenants typically have more resources and are more likely to have the financial stability to support their operations. This can provide a more stable and predictable income stream for investors. Singapore is also in 2nd place on the World Bank rankings for ease of doing business among 190 other economies. This would greatly help bring in more global businesses and help the formation of new businesses in Singapore, both of which are good news for commercial and industrial property investors.

Finally, investing in commercial and industrial properties can also offer potential tax benefits, such as deductions for mortgage interest payments, property taxes, and depreciation. This can provide significant savings for investors running their own businesses in the commercial or industrial property and are looking to maximise their return on investment.

However, it is important to carefully consider the unique risks and challenges associated with investing in these types of properties. Market volatility, regulatory compliance, and property management requirements are just a few of the potential risks that investors should be aware of before investing in commercial or industrial properties. In the next section, we will explore the key disadvantages of commercial and industrial properties that you need to be aware of if you are considering investing in these assets.

The Disadvantages of Commercial & Industrial Properties that You Need to be Aware of

Investing in commercial or industrial properties can be a lucrative opportunity for many investors, but it also comes with certain disadvantages that investors should be aware of before making any investment decisions. One major disadvantage is the higher upfront costs associated with these types of properties. Commercial and industrial properties tend to be larger than residential properties and require more specialised features to support business operations, such as loading bays, specialised machinery, and office spaces. These features can increase the overall cost of the property and require a higher level of capital investment.

The cash outlay required for commercial and industrial properties will feel a lot higher for local investors as you cannot use your CPF for the down payment. The loan-to-value ratio typically stands at around 80% but could be much less depending on the financial health of the individual or company that intends to purchase the commercial property. TDSR will apply to individuals purchasing non-residential properties as well. While not a necessary condition, investors with a business entity (with a good financial history) to enter into commercial and industrial property investments. Individual investors might have to fork out larger amounts of cash depending on the LTV situation with the bank loan.

Although commercial or industrial properties are not subject to ABSD, there are other considerations that foreign investors should keep in mind. For instance, when purchasing a commercial property from a GST-registered company, buyers are required to pay GST on the purchase price. However, if the buyer is also registered for GST, they can claim back the amount paid. Conversely, if the buyer is not registered for GST, they must pay the full amount. This can have an impact on the overall cost of the investment and should be factored into the investment decision. Additionally, it’s important to note that if GST is applicable to the property, it will also be applicable to the rent collected from that property. Investors will need to remember that the GST rate is going to increase by another 1% in 2024, bringing the total up to 9% GST. It is also important to note that if you are not a GST-registered entity, you are not allowed to collect GST on the rent of the commercial or industrial property, that would be a crime.

Another disadvantage is the longer vacancy periods associated with commercial and industrial properties. These properties can take longer to find tenants than residential properties, as businesses and industrial tenants may require more specific features or modifications to the property in order to accommodate their needs. As a result, vacancy periods can be longer and result in a loss of income for the investor. Thus, the tenant-owner relationship for commercial and industrial properties is very important. Each should consider the other as a business partner in some sense, since the tenancy is likely a long-term affair.

Moreover, commercial and industrial properties tend to have higher management and maintenance costs than residential properties. This is due to the more complex features and specialised systems required to support business operations, such as elevators, heating, ventilation, and air conditioning (HVAC) systems, and parking lots. Furthermore, commercial and industrial properties often have multiple tenants, which can increase the management and administrative burden on the investor. This depends on the type of commercial and industrial property investors are going for. From retail, offices, medical suites, to shophouses and factories, there are many different options. These management and maintenance costs can vary dramatically depending on the type of commercial or industrial property.

Another potential disadvantage of investing in commercial or industrial properties is the higher risk of being impacted by economic downturns. During times of economic uncertainty, businesses and industrial tenants may be more likely to downsize or close, which can impact the investor’s rental income and overall return on investment. This can be a significant risk for investors, especially those who have invested a large amount of capital into a commercial or industrial property. This is a much larger risk for non-residential properties as they are more greatly affected by economic downtowns. Depending on the type of commercial or industrial property, it will face a varying level of impact based on the type of sector its tenants belong to (e.g. manufacturing, healthcare, etc.).

Lastly, commercial and industrial properties are subject to a variety of regulatory requirements, such as zoning laws, building codes, and environmental regulations. This can be a complex and time-consuming process for investors, as they must comply with these regulations in order to avoid penalties and ensure the property is safe and suitable for tenants. This is especially so for foreign investors who are new to Singapore’s property market. Which is also why it is important to find a competent, experienced, and well-informed realtor on this property segment.

While investing in commercial or industrial properties can offer attractive rental yields, diversification, and potential capital appreciation, it also comes with certain disadvantages that investors should carefully consider before making any investment decisions. These include higher upfront costs, longer vacancy periods, higher management and maintenance costs, higher risk of economic downturns, and regulatory compliance requirements. By carefully weighing the costs and benefits of investing in commercial or industrial real estate, investors can make informed investment decisions that align with their investment goals and risk tolerance.

Closing Thoughts

In conclusion, foreign investors interested in commercial or industrial properties in Singapore have much to consider before making investment decisions. While these properties can offer attractive rental yields and diversification, they also come with certain disadvantages that need to be weighed. To help with this decision-making process, we have provided a table outlining the pros and cons of investing in commercial or industrial properties.

If you are particularly interested in buying shophouses, we invite you to read our step-by-step guide to purchasing this type of commercial property in Singapore. In this article, we provide detailed information on the process of buying a shophouse.

We understand that investing in commercial or industrial properties can be a complex process, and it’s natural to have questions or concerns about your investment options. If you are seeking personalised advice on investing in Singapore’s real estate market, our experienced inside sales team is here to help. We have a wealth of knowledge and expertise in the industry, and we can provide you with insights and advice tailored to your specific needs and investment goals. So if you would like to discuss your options further, please don’t hesitate to reach out to us. We look forward to hearing from you and helping you make the most of your investment.

Disclaimer: The information provided in this article is accurate as of the date of publication and is based on the rules and regulations concerning stamp duty rates and taxes in effect at the time. While we strive to update our past articles diligently, please be aware that tax laws and regulations can change frequently, and it is essential to verify the most current rules and guidelines from the relevant government authorities or consult with a qualified professional for the latest updates and accurate advice.

The post An Investment Guide for Foreigners in Singapore: The Pros & Cons of Commercial and Industrial Properties appeared first on Insights by PropertyLimBrothers.

Singapore has a long history of being a welcoming destination for foreign property investors to park their wealth. In recent years, especially on the back of the COVID-19 pandemic, the city-state has emerged as one of the most desirable places in the world to buy property due to its stable political climate, excellent infrastructure, and strong economic fundamentals. This is in spite of the several rounds of cooling measures where the Additional Buyer’s Stamp Duty (ABSD) rates were increased for foreign buyers.

However, buying property in Singapore as a foreigner is subject to certain restrictions and regulations. In this article, we will be breaking down the type of properties foreigners can buy in Singapore and the steps involved in making the purchase. You may also want to check out our previous article about whether foreigners should rent or buy property in Singapore.

Step 1: Understanding the Restrictions and Eligibility Criteria

Who are considered foreigners?

In Singapore, a foreigner is generally defined as any individual or entity that is not a Singapore Citizen (SC), company, society, limited liability partnership (LLP), or association. Under this definition, Singapore Permanent Residents (SPRs) will also fall under the category of foreigners. 

Although SPRs are still considered foreigners, they are accorded a more relaxed set of restrictions and regulations. 

What type of properties can foreigners buy?

Under the Residential Property Act, foreigners are allowed to own residential properties in Singapore, but with certain restrictions. The biggest difference between a SPR and foreign investor (non-SPR) is that SPRs can buy from both the public and private housing market (subject to eligibility criteria) while the latter can only buy from the private housing market.

The above table summarises what properties SPRs and foreign investors are eligible for in general. However, there are other factors to consider, such as:

• Whether the individual is buying the property alone or jointly with others
• If buying jointly, what are the residency statuses of each buyer?

For foreigners buying a property alone, new HDB flats from BTO and SBF exercises will be out of the question as they are public housing set aside specifically for SCs. The only form of public housing SPRs will be eligible for is resale Executive Condominiums (ECs) that have passed their 5-year Minimum Occupation Period (MOP) while foreigners can only buy privatised ECs.

For foreigners buying a property jointly with others, their residency statuses matter. There are varying levels of restrictions that apply to different groups of individuals based on their residency status.

A couple who are both foreigners (non-SPRs) are only allowed to purchase ECs that are more than 10 years old. There are no additional privileges granted.

However, if there is one SPR and one foreigner purchasing the property together, they are permitted to buy resale ECs that have already fulfilled their 5-year MOP as well as fully privatised ECs (more than 10 years old). 

A couple who are both SPRs may purchase a resale HDB flat under the Family or Fiancé Scheme, as long as they have held their PR status for at least three years. They may also choose to buy resale ECs that have already fulfilled their 5-year MOP, or ECs that are more than 10 years old.

If a couple is made up of at least one SC, more options are available. A SC and SPR couple can ballot for a BTO/SBF flat, or buy an HDB flat or EC from the resale market. A SC and foreigner couple can also ballot for a BTO/SBF flat but will be limited to only 2-room Flexi flats. 

Foreigners looking to purchase private housing in Singapore are subject to less stringent restrictions regardless of their residency statuses. For private residential properties such as condominiums and apartments, there are no restrictions on the location and foreigners are not subjected to MOP before renting out or selling their properties. 

However, foreigners who wish to purchase landed properties must first obtain approval from the Land Dealings Approval Unit (LDAU) of the Singapore Land Authority (SLA). Alternatively, they may take up a leasehold estate in a landed residential property for up to seven years, including any further renewal terms.

Applicants are assessed on a case-by-case basis, taking into consideration factors such as their permanent residency status of at least five years and their exceptional economic contributions to Singapore, such as their employment income assessable for tax in Singapore.

Foreign buyers are also restricted to residential properties that do not exceed 15,000 sqft and are not situated within a good class bungalow area. Those who wish to apply for such properties will be subject to much more stringent qualifying criteria.

In contrast, the criteria for the purchase of properties in Sentosa Cove still require the LDAU approval but are less stringent. Foreign buyers are only required to use the property solely for their own occupation and that of their family members as a dwelling house, and not for rental or any other purpose. The only restriction is that the property must not exceed 1,800 sqm in size.

Aside from residential properties, foreigners can also invest in non-residential properties such as commercial and industrial properties. Look out for our upcoming article which will cover the pros and cons of investing in those types of properties for foreigners.

Step 2: Understanding the Costs Involved

When considering purchasing property in Singapore as a foreigner, it is important to be aware of the various costs involved. While these costs and regulations may seem burdensome, they are designed to protect the integrity of Singapore’s property market and ensure that it remains accessible to locals. By taking the time to understand these expenses and regulations, foreign buyers can make informed decisions and help contribute to a healthy property market.

Buyer’s Stamp Duty (BSD)

In Singapore, all property purchases are subject to a tax known as buyer’s stamp duty (BSD). As the name suggests, this tax is levied only on the buyers of the property.

Once the purchase agreement is signed, buyers have 14 days to pay the BSD. The amount of BSD payable is calculated based on either the purchase price stated in the agreement or the property’s market value as determined by a valuation report, whichever is higher.

This means that even if the purchase price negotiated is lower than the property’s valuation, the BSD rate will still be based on the higher of the two amounts. Therefore, foreign buyers should be prepared to factor in the cost of BSD when budgeting for their property purchase.

Below are the breakdown of the current BSD rates for residential and non-residential properties (regardless of residency status) after the recent housing policy changes announced in Budget 2023.

Do note that the BSD is a progressive tax rather than a flat tax. This means that the rates will apply to the market value bracket of the property acquired and tabulated up to the full purchase or valuation price. Below is an example to illustrate the tabulation of BSD:

Additional Buyer’s Stamp Duty (ABSD)

Foreigners who are considering buying real estate in Singapore should take note of the ABSD rates in addition to the BSD. The ABSD was introduced by the Singaporean government in 2011 as an additional cooling measure to manage the rising demand in Singapore’s property market.

ABSD only applies to residential properties, and the rates vary depending on the residency status of the buyer. The latest ABSD rates were released in December 2021, and as of April 2023, the rates are as follows:

• SPRs are required to pay 5% ABSD on their first property, 30% on their second property, and 35% on their third and subsequent properties.
• Foreigners (Non-SPRs) are required to pay 60% ABSD on all the properties they acquire.

A concise table comparing the ABSD rates for different residency statuses is available below. It is important for foreign buyers to be aware of these rates as they can significantly impact the cost of purchasing a property in Singapore.

Under the Free Trade Agreement (FTA), Nationals or PRs of these countries are exempted from foreigner ABSD rates and will be accorded the same Stamp Duty treatment as SCs:

• Nationals and PRs of Iceland, Liechtenstein, Norway, and Switzerland
• Nationals of the United States of America
  

Or for those that prefer abbreviating these Nationalities, just remember,  SNAIL. 

Loan-to-Value (LTV) & Total Debt Servicing Ratio (TDSR) for property loans

Foreign buyers have the option to approach any bank for a property loan, if necessary. However, the maximum amount that can be borrowed is subject to the number of existing housing loans the individual currently holds. To get a better idea of the amount that you can loan, apply for an In-Principle Approval (IPA) with your bank. The IPA is typically valid for two weeks.

One important policy to take note of is the Loan-to-Value (LTV) limit. It is a regulation that limits the amount of money that banks can lend to buyers when they purchase a property and sets a maximum loan amount that is based on the value of the property being purchased. The policy applies to both local and foreign buyers, but the restrictions are stricter for foreign buyers.

For example, at the time of writing, foreign buyers can borrow up to 75% of the residential property’s value if they are obtaining their first property loan in Singapore. For subsequent loans, the LTV limit is even lower.

Other factors that will influence the loan amount include age, employment status, residency status, and credit score.

The Total Debt Servicing Ratio (TDSR) is another crucial policy to consider when securing a property loan. It refers to the maximum percentage of a borrower’s gross monthly income that can go towards repaying their total monthly debt obligations. This applies to loans offered by financial institutions, for all types of properties and covers properties in and outside Singapore. 

At the time of writing, when a buyer applies for a loan, their TDSR is capped at a maximum of 55% of their monthly income. This implies that the sum of all their monthly debt obligations, including housing loans, credit card debts, student loans, car loans, renovation loans, and other secured or unsecured loans, should not exceed 55% of their total monthly income.

Other fees and costs

Some additional fees to take into consideration are the conveyancing fees and legal expenses involved in the property acquisition process.

Conveyancing fees in Singapore typically range from $250 to $6,000 per legal service, depending on the complexity of the transaction. It is highly recommended to engage the services of a qualified real estate lawyer to handle the legal aspects of the purchase.

Step 3: Engage a Property Agent and Lawyer

After understanding the various restrictions and costs involved, it is time to engage a property agent, though you could also engage a property agent to explain everything to you before embarking on your property journey here.

In Singapore, engaging a property agent when buying or selling a property is common practice. With a highly competitive and fast-moving property market, having a trusted and experienced agent can be especially beneficial. 

All property agents in Singapore are licensed by the Council for Estate Agencies (CEA), which ensures they adhere to professional standards and ethical conduct. Agents can provide valuable guidance on the latest property trends, pricing, and financing options. They can also help navigate complex legal and regulatory requirements. Furthermore, many property agents in Singapore have established relationships with developers and property owners, which can offer access to exclusive listings and information on any developer discounts. 

If you have not already shortlisted some properties that you like, an agent can help you source and shortlist some selections based on your needs and preferences. In the event that you are interested in a new launch property, an agent can also bring you around and serve you at project showflats. When you have made a decision to go through with a purchase, the agent can then assist you with the necessary paperwork and processes.

The commission fees for hiring a property agent are typically around 2% of your property’s valuation, but buyers usually do not have to pay commissions as the sale commission is typically shared between the buying agent and seller’s agent. In the event that you are paying a commission fee, ensure that an invoice from a licensed real estate agency is issued. When paying, do not pass any cash directly to the agent – instead, issue a cheque payable to the realtor’s agency according to the invoice. 

It is also important to hire a qualified local lawyer to assist with the contracts and conveyancing of the property during the transaction. They are also responsible for carrying out due diligence checks on the seller (for resale properties) and liaising with the developer’s solicitor (for new launch properties) to ensure that everything is in order. 

Step 4: Make an Offer (for Resale properties)

Once you have found a property that suits your needs and preferences, it is time to make an offer to the seller. You can convey your offer to your property agent who will then make the official offer to the seller or seller’s agent. In most cases, other than the offer price, details such as the Option and Completion periods are negotiated. Option periods are generally 14 days and Completion periods are between 10 to 12 weeks. Depending on the seller’s requirements, this is also when an extension of stay after the sale completion may be negotiated. 

If the seller finds the offer favourable and decides to close the deal, you may proceed to the next step.

Step 5: The Option to Purchase (OTP) or Sale and Purchase (S&P) Agreement 

After the seller accepts your offer, you will have to procure a contractual document called the Option to Purchase (OTP) if you are buying a resale property or enter into a Sale and Purchase (S&P) Agreement with the developer if you are buying a new launch property. 

At this stage, you should have already obtained your bank’s IPA if you are taking a property loan. An IPA is essentially the bank’s pledge that they will extend the loan to you for your property purchase, provided that there are no changes to employment status, income, etc. It is important to have an IPA before procuring the OTP. Without an IPA, you risk not being able to secure the full amount you need from the bank, leading to a failure to meet payment schedules for your property and potentially losing your option fee.

In Singapore’s real estate market, it’s common for buyers to provide an option fee to “reserve” the property for an agreed period of time while they consider their potential purchase. The option fee is an essential component of many real estate transactions in Singapore as it helps to ensure that both parties are committed to the sale and have a stake in the transaction’s outcome. This fee is typically held in an escrow account and can range from a few thousand dollars to a percentage of the purchase price, depending on the type of property and the agreement between you and the seller. For private properties, the option fee is typically 1% of the purchase price.

By providing the option fee, the buyer shows their serious interest in purchasing the property and secures it for a specified period, during which they can conduct due diligence and evaluate their ability and willingness to proceed with the purchase.

If you decide not to proceed with the purchase within the agreed time frame, for reasons such as being unable to secure financing or changing your mind, you risk forfeiting the option fee. However, if the sale goes through, the option fee is typically applied towards the purchase price.

In the event that you require more time to decide whether to exercise the option or not, you may request an extension from the seller through your agent. However, it is important to note that the seller is not obligated to grant an extension and may choose to decline the request.

It is crucial to exercise the option within the specified time frame. Failure to do so will result in the forfeiture of the option fee and the opportunity to purchase the property. Therefore, it is recommended to carefully consider all relevant factors before entering into the option agreement and seek legal advice if necessary.

To proceed with the transaction, exercise the option by signing the OTP. If you are overseas at this point, you could sign the OTP before a Notary Public or officer at the Singapore Consulate, and send the duly signed and witnessed OTP back to your lawyer in Singapore by courier. 

Step 6: Exercise Option and Complete the Sale

Once you have decided to proceed with the transaction, exercise the option by signing the agreement at your lawyer’s office. Following this, you will need to submit the agreement along with a payment of 4% of the purchase price, or the amount agreed upon between you and the seller, to the seller’s lawyer. 

Once the agreement between you and the seller is reached, it is time to hand over the reins to your lawyer for the completion of the sale. The process typically takes around 10 to 12 weeks, during which your lawyer will take care of all the necessary paperwork for the conveyancing of the property.

Your lawyer will also be responsible for lodging a caveat on the property, coordinating with the financial institution and CPF board (if applicable), and preparing the mortgagor/mortgagee documents. They will also ensure that you pay the stamp duty fees to the Inland Revenue Authority of Singapore (IRAS) within 14 days of exercising the OTP or signing the Sales and Purchase Agreement if you’re buying from a property developer.

After all the necessary paperworks and payments are settled, you can look forward to taking possession of the property and moving into your new abode!

Closing Thoughts

Buying a property in Singapore as a foreigner requires careful planning and preparation. There are several legal and financial requirements that you need to comply with, and navigating the complex Singapore property market can be a challenge. However, by following the step-by-step guide outlined in this article, you can make informed decisions and ensure a smooth transaction process.

One of the most important steps in buying a property in Singapore as a foreigner is conducting thorough research. This includes understanding the different types of properties available, such as condominiums, landed properties, and HDB flats, and their associated costs and restrictions. It also involves familiarising yourself with the various neighbourhoods and their amenities, as well as staying up-to-date on the latest property trends and market conditions.

Another crucial aspect of buying a property in Singapore as a foreigner is seeking professional advice. This includes engaging a trustworthy property agent, as well as consulting with a lawyer, tax advisor, and mortgage broker to ensure that you are fully aware of all legal and financial requirements.

When it comes to financing your property purchase, it is important to keep in mind that as a foreigner, you may be subject to stricter lending requirements and higher interest and ABSD rates. However, there are several financing options available, including bank loans and private financing, and it’s important to carefully consider your options and choose the one that best fits your needs and budget.

We hope that this article has given you a clearer understanding of the entire process of purchasing a property in Singapore as a foreign buyer. If you are looking to enter the Singapore real estate market, or have further questions about the process, do get in touch with our PropertyLimBrothers team. Our experienced and dedicated team can guide you through the whole process, provide you with the latest market analyses and trends, and advise you on whether your move will be prudent and where the opportunities lie. 

PropertyLimBrothers, always happy to show you the place.   

Disclaimer: The information provided in this article is accurate as of the date of publication and is based on the rules and regulations concerning stamp duty rates and taxes in effect at the time. While we strive to update our past articles diligently, please be aware that tax laws and regulations can change frequently, and it is essential to verify the most current rules and guidelines from the relevant government authorities or consult with a qualified professional for the latest updates and accurate advice.

The post Navigating the Singapore Property Market as a Foreign Buyer: A Step-by-Step Guide appeared first on Insights by PropertyLimBrothers.

The Singapore government’s Budget 2023 has brought good news for first-time home buyers who are looking to purchase a resale HDB flat. As part of the government’s efforts to support home ownership, an additional grant of $30,000 has been introduced for first-time buyers. This grant is expected to provide a significant boost to many Singaporeans who are struggling to afford their first home. 

In this article, we will analyse how this additional grant can impact the first home buying journey of the average couple in Singapore. We will examine the affordability of resale HDB flats and explore the potential benefits of this grant for first-time buyers. Join us as we take a closer look at this crucial aspect of the Budget 2023 and its impact on the real estate market in Singapore.

If you have not read our article on the Budget 2023 changes, you can catch it here.

Why Increase the CPF Housing Grant?

The cost of purchasing a home in Singapore has always been a major concern for many Singaporeans, especially for first-time buyers who are looking to get a foot on the property ladder. The government has recognised this and has taken steps to address the issue by introducing various measures to support home ownership. 

One such measure is the introduction of an additional grant of $30,000 under the CPF housing grant for first-time buyers in the Budget 2023, bringing the total CPF housing grant to $80,000 for 2-4 room flats. This grant is expected to help many Singaporeans who are struggling to afford their first home, particularly resale HDB flats.

Resale HDB flats are a popular option for first-time buyers as they offer more flexibility in terms of location and floor area. The ability to move-in relatively fast upon purchase is also a crucial factor as couples need not wait for years as they do for a BTO flat. However, the rising cost of HDB flats has made it increasingly difficult for many Singaporeans to afford them. The average psf for 2-4 room resale HDB flats has increased by 7.6% from Q4 2021 to Q4 2022.

The additional grant of $30,000 for first-time buyers is expected to make a significant impact on the affordability of resale HDB flats. The grant will be disbursed on top of the existing grants for first-time buyers for resale HDB, which include the Enhanced CPF Housing Grant (EHG) and the Proximity Housing Grant (PHG). Together with the existing grants, first-time buyers can receive up to 190k in grants to help with the purchase of their first home.

With the additional grant, the average couple in Singapore may be able to afford a resale HDB flat that is priced slightly higher than what they would have been able to afford without it. And even for the same quantum resale HDB flat, the average couple would also have a much better financial position and cash flow thanks to the grant.

In addition to making it easier for first-time buyers to purchase their first home, the additional grant is also expected to have a positive impact on the real estate market in Singapore. The increased demand for resale HDB flats may have the potential to push up prices, which may benefit current HDB flat owners who are looking to sell. We will elaborate more on this point later in the article.

The additional grant of $30,000 for first-time buyers in the Budget 2023 is a much-needed boost for many Singaporeans who are struggling to afford their first home. With the grant, more first-time buyers may be able to enter the property market, which can have a positive impact on the economy and the real estate market in Singapore.

The Positive Impact on the Average Couple’s HDB Journey

The additional grant of $30,000 for first-time buyers in the Budget 2023 can positively impact the first-time home buyers’ journey in several ways. For many first-time buyers, purchasing a home is a significant financial commitment, and the grant can help ease some of the financial burdens. In this section, we will illustrate the benefits of the additional grant for a fresh university graduate couple. 

Our assumption is that the household income is $8,400, which is the dual-income family’s median wage according to the data from Straits Times. We assume that the couple buys a decent 4 room resale HDB at the price tag of $650,000, with no COV. We also assume that they are eligible for $20,000 in grants for living within 4km of their parents under the Proximity housing grant. The couple is taking the HDB loan which has a down payment of 20%, and an interest rate of 2.6% with a loan tenure of 30 years.

Firstly, the grant can help buyers increase their down payment, which in turn can lead to a lower monthly mortgage payment. A higher down payment reduces the amount of money that a buyer has to borrow, which can result in a lower monthly mortgage payment. This can help first-time buyers better manage their monthly expenses and free up some money for other essential expenses. This is illustrated in the table below. While this might seem like a small number for a university graduate couple, for families with lower incomes, it could be a huge difference in living expenses and lifestyle.

Secondly, the grant can help buyers afford a home that they may not have been able to afford otherwise. With the additional 30k grant, the affordability of resale HDB flats increases, and first-time buyers with lower incomes may now be able to purchase a home that would have been previously out of their reach. 

This can significantly impact their quality of life, as owning a home can provide a sense of stability and security. With the same amount of savings of $50,000 in CPF OA and Cash, the couple can now afford a property which has a quantum of $800,000. This is $150,000 higher than before. This could mean a huge lifestyle difference by choosing a more premium location or a newer resale option with a longer balance lease. The assumption here is that the couple is applicable for the higher loan quantum.

Thirdly, the grant can help first-time buyers save time in their home buying journey. For many lower-income individuals, saving enough money for a down payment can take several years, and in some cases, it may take up to a decade or more. With the additional grant, the amount of time required to save for a down payment is significantly reduced, and buyers can enter the property market much sooner. Looking at the table below, it takes the couple an additional year to save up the difference of $30,000. We all know how long one year can be for a young couple looking to settle down, and this might make a huge difference to some Singaporeans. 

Note that for lower income families, the amount of time it takes to save up the difference can take much longer. The $30,000 difference can be a game changer for these families, especially when it reduces the amount of time it takes to save up the difference.

Lastly, the grant can help first-time buyers avoid tapping into their savings for a down payment. Many buyers use their savings to pay for a down payment, which can significantly impact their personal finances. With the additional grant, buyers may be able to avoid dipping into their savings, which can help them maintain their financial security and stability. This additional $30,000 can be an important rainy-day saving for a potential recession, or even enough for a start-up fund for a business idea. This is equivalent to 12 months of savings, which is enough to tide the couple through unemployment for both of them for 6 months.

The additional grant of $30,000 for first-time buyers in the Budget 2023 can positively impact the first-time home buyers’ journey. It can help increase the down payment, reduce monthly mortgage payments, increase affordability, save time, and avoid tapping into personal savings. Overall, the grant is a significant step towards making homeownership more accessible and affordable for many Singaporeans.

Are the Grants adding Fuel to the Inflation Fire?

While the additional grant of $30,000 for first-time buyers in the Budget 2023 can have a positive impact on the personal finances of first-time buyers, there are also some concerns Singaporeans have with this new policy.

One of the main concerns with this policy is that it could contribute to inflation in the housing market. When the government provides additional funds for first-time buyers to purchase homes, it can increase the demand for housing, which can lead to higher prices. This can make housing less affordable in the long run, particularly for those who are not eligible for the grant or cannot afford to buy a home without it. 

Another concern with this policy is that it may not address the root causes of housing affordability in Singapore. While the grant can help first-time buyers afford a home, it does not address the underlying issues of limited land supply and high construction costs that contribute to high housing prices in Singapore. As a result, the grant may only provide temporary relief for first-time buyers, and the long-term affordability of housing in Singapore may remain an issue.

Additionally, the grant may have unintended consequences for the broader housing market. For example, if the demand for resale HDB flats increases due to the grant, it may lead to a decrease in the supply of flats available for sale, which can drive up prices for other buyers who are late to the party. This can make it more difficult for buyers who are not eligible for the grant to afford a home down the road.

In other words, while the additional grant of $30,000 for first-time buyers in the Budget 2023 can provide significant benefits for first-time buyers, it is not without its potential drawbacks. The policy could contribute to inflation in the housing market, fail to address some of the underlying issues of housing affordability, and have unintended consequences for the broader housing market. 

Ultimately, this is to help aid first time home buyers bridge the affordability gap. To prevent home sellers from further driving prices up and potentially causing another drastic price increase, HDB regulations on valuing the property may see more stringent measures. Which in turn, will curb any potential sudden price increase due to the additional grants. This is similar to that of the GST rise where there was a disclaimer to take action against unjustified increases in prices. However, this still may not stop home sellers from asking for higher prices in anticipation of higher affordability and may potentially create another COV situation where prices do not match valuations.

Housing Policy: A Difficult Balancing Act

When weighing the pros and cons of the additional grant of $30,000 for first-time buyers in the Budget 2023, it is important to consider the potential economic impacts of the policy in greater detail.

One of the key advantages of the grant is that it can help lower-income families enter the housing market. For many families, the upfront costs of purchasing a home, such as the down payment and other closing costs, can be a significant barrier to homeownership. By providing an additional $30,000 grant, the government can help offset some of these costs and make homeownership more accessible to families who may not have been able to afford it otherwise.

This can have significant long-term benefits for low-income families. Homeownership is often seen as a way to build wealth, as property values tend to appreciate over time. By enabling more people to enter the housing market, the grant can help reduce wealth inequality and provide a pathway to financial security for low-income families. Additionally, the grant can help stimulate demand in the housing market, which can have positive knock-on effects for the broader economy. When more people buy homes, it can lead to increased spending on furniture, home improvements, and other related goods and services. This can create jobs and support economic growth.

Overall, we believe that the benefits outweigh the potential drawbacks, but it is important to monitor the impact of the grant on the housing market and ensure that housing remains affordable for all Singaporeans.

Final Thoughts

As we move forward, it will be important to monitor the impact of this policy on the housing market and make adjustments as necessary to ensure that housing remains affordable for all Singaporeans. To help keep you informed about these and other important issues in Singapore’s economy, we invite you to attend our upcoming webinars and read our 2022Q4 report and other editorial pieces.

Our webinars will feature expert speakers and provide valuable insights on the latest real estate trends, policies, and investment strategies. Our 2022Q4 report will provide a detailed analysis of the economic landscape in Singapore and offer a broader perspective on where the real estate industry might be headed in the near future. Finally, our editorial pieces will cover a range of topics on real estate, investment, finance, and lifestyle.

We are committed to providing you with the most accurate and insightful analysis of Singapore’s economy, and we look forward to sharing our knowledge and expertise with you in the months ahead. So please join us for our webinars, read our reports and editorial pieces, and stay informed about the latest developments in Singapore’s economy. You can also reach out to our Inside Sales Team here if you have any questions or are in need of specific solutions to your own housing journey.

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As a single person in Singapore, finding a flat to call your own can be a daunting task. It’s understandable to feel overwhelmed by the process, especially given the rising interest rates, high housing prices, and competitive market. However, it’s important to know that you’re not alone in this journey, even as you take on the financial liabilities alone. The Housing & Development Board (HDB) has designed housing measures, such as the Singles Scheme, specifically to address the needs of individuals like you who are looking for a flat.

With this in mind, it’s important to approach the process with a positive and proactive attitude, knowing that there are options and resources available to help you achieve your goal of homeownership. 

This article is here to provide you with the information and guidance you need to navigate the housing market as a single person and find a flat that fits your needs and budget. Stay with us as we go through the various options available.

Option 1: Buying a new HDB flat under the Single Singapore Citizen Scheme

At present, the minimum age to buy a flat as a single in Singapore is 35 years old, unless you are orphaned or widowed. The below table shows the eligibility criteria for singles to qualify for the Single Singapore Citizen Scheme. 

As you can see, the only option available to you under the Single Singapore Citizen Scheme for the purchase of new flats are 2-room Flexi flats. Furthermore, you can only apply to estates that HDB classifies as non-matured and must not exceed the income ceiling of $7,000, among other requirements.

While this may seem straightforward, it will be a lengthy process since you’d have to first ballot for a queue number in the BTO sales exercise and wait for the flat to be built. To avoid the waiting time, you may want to apply for the Sale of Balance Flats (SBF) exercise instead, which allows you to ballot for a unit with a shorter waiting time or even immediate key collection.

When you apply as a single, you are eligible for the EHG (Singles) of up to $40,000 for your flat purchase if you meet the grant requirements. This includes working for 12 consecutive months prior to your application and being currently employed at the time of application. Below is the breakdown based on your monthly income:

As a single owner of the 2-room Flexi flat, you will also not be allowed to rent out the flat at all.

Lastly, it is possible for you to get a flat as a single first, and upgrade to a larger flat with your partner if you get married in the future. 

For this case, you would be applying for your next flat as a First-Timer/Second-Timer couple or as a Second-Timer couple (if your partner has also gotten housing subsidies before). However, do remember that when you sell your flat, you will have to refund the grant amount received and any CPF savings used plus accrued interest back to your CPF OA account. Do also take note that resale levy may apply to those receiving housing subsidies from HDB for the second time.

Option 2: Buying a new HDB flat under the Joint Singles Scheme

Under the Joint Singles Scheme, you are able to jointly purchase an HDB flat together with up to three other singles. The eligibility conditions are mostly the same as the Single Singapore Citizen Scheme.

The difference between the Single Singapore Citizen Scheme and the Joint Singles Scheme, other than the number of applicants, is the income ceiling as well as the eligibility to apply for an executive condominium (EC) unit. 

The income ceiling under the Joint Singles Scheme is $9,000 instead of $7,000 since there are more applicants under this scheme. It is also the only way, at the time of writing, for singles to jointly purchase a new EC unit and without any size restriction. This is the biggest advantage of the Joint Singles Scheme. We will touch on this option later on in this article.

Like the previous scheme, you will also be eligible for EHG (Singles) for your flat purchase if you meet the grant requirements. But since you are applying with two or more singles, the grant amount is up to $80,000 depending on your average combined monthly income. Below is the breakdown:

Regardless of the number of co-applicants, the EHG will be disbursed to only two applicants’ CPF OA with a 50-50 split under the Joint Singles Scheme. For example, if you apply with two of your siblings who are also SCs above 35 years old and are eligible to receive $40,000 of grants, $20,000 will be disbursed to either you and one of your siblings’ or both your siblings’ CPF OA account. 

Lastly, you will also not be allowed to rent out any part of the 2-room Flexi flat.

Option 3: Buying a resale HDB flat

The next option is buying a resale HDB flat from the open market under either the Single Singapore Citizen Scheme or the Joint Singles Scheme. The biggest difference between buying from the open market and buying a new flat from HDB is that there is no restriction on the flat type and location for the former. This means that you can buy a resale HDB flat of any size in any location, as long as you meet the other requirements under the scheme. 

You will also be able to rent out your whole flat after serving a 5-year Minimum Occupation Period (MOP), and only the bedroom(s) within the MOP if you are purchasing a 3-room or larger flat. If you are purchasing a 2-room Flexi flat, you will not be able to rent it out before MOP.

However, the trade-off is that resale flats are more expensive since you are buying from the open market and they will come with various degrees of lease decay. With effect from 10 May 2019, the property that you purchase must have at least 20 years of lease remaining, otherwise you would not be able to use your CPF at all to fund the purchase. The remaining lease must also be able to last until the applicant (or youngest applicant under the Joint Singles Scheme) is 95 years old. If this requirement is not met, the Loan-to-Value (LTV) limit for your HDB loan and use of CPF will be pro-rated.

Furthermore, resale flats are subjected to a Cash-over-Valuation (COV) if the purchase price is higher than the valuation price. This COV can only be paid in cash.

You will also be eligible to apply for CPF housing grants when you buy a resale HDB flat. 

Under the Single Singapore Citizen Scheme:

• Enhanced CPF Housing Grant (EHG) (Singles): The framework for the EHG (Singles) for HDB resale flats is the same as for new HDB flats. The income ceiling for this grant is $4,500, and the maximum amount disbursed based on your income is $40,000.
• Singles Grant: This grant is only applicable for first-timer singles purchasing HDB resale flats. If you are purchasing a 2- to 4-room resale flat, you will receive $25,000. If you are purchasing a 5-room resale flat, you will receive $20,000. To qualify for this grant, your monthly income must not exceed $7,000. 
• Proximity Housing Grant (PHG): If you are living with your parents or children (must be listed as occupants), you will get $15,000 regardless of flat type. If you are staying alone but within a 4km radius of your parents’ or children’s home (can be either HDB or private property), you will receive $10,000. Unlike the other two grants, there is no income ceiling for the PHG.

Under the Joint Singles Scheme:

• Enhanced CPF Housing Grant (EHG) (Singles): Similarly, the framework for the EHG (Singles) for HDB resale flats is the same as for new HDB flats. The income ceiling for this grant is $9,000, with the maximum amount being $80,000 based on the combined monthly income. This will be disbursed to two applicants (regardless of whether there are more applicants) with a 50-50 split. 
• Singles Grant: Like the EHG, the Singles Grant for the Joint Singles Scheme is also doubled in amount. If purchasing a 2- to 4-room resale HDB flat, you and your co-applicants will receive $50,000. If purchasing a 5-room resale HDB flat, you and your co-applicants will receive $40,000. To qualify for this grant, your combined monthly income must not exceed $14,000.
• Proximity Housing Grant (PHG): Individuals who apply under the Joint Singles Scheme may be eligible. The grant is $15,000 if they plan to reside with their parents or kids, or $10,000 if they will live within 4km of their family home.

A quick note for what happens if you get married after getting the Singles Grant to buy a resale HDB flat – you and your partner may be eligible for the Top-Up Grant when you upgrade to another resale HDB flat. This grant is essentially the amount of Family Grant you are eligible for, minus the Singles Grant amount you received previously. The income ceiling for this grant is $14,000.

Option 4: Buying a new EC unit from developer under the Joint Singles Scheme

As mentioned previously, this is currently the only way for singles to purchase an EC unit. Below are the eligibility criteria to meet in order to qualify:

Unfortunately, you will not be eligible for any CPF housing grants when purchasing an EC unit under the Joint Singles Scheme. The only CPF housing grants available are the Family Grant or Half-Housing Grant, both of which are for couples or family units. 

The 5-year MOP is also applicable to EC units, which means that you will not be allowed to rent out the entire unit during the period. However, you are able to rent out bedrooms following the usual rental procedures.

Option 5: Buying a private condo unit

The last option would be the private property market, which is the most costly option compared to the rest. However, this is also the only option where you can buy a property before 35 years old.

Some things to note if you are considering this option:

1. You can only take a bank loan

This means that you can only borrow a maximum of 75% of the purchase price. This might not seem that bad considering that the LTV limit for HDB loans has been reduced to 80% following the latest cooling measures. 

But do take note that for bank loans, there is a mandatory cash component of 5%, which means that 5% out of the 25% downpayment has to be paid in cash. The remaining 20% can be paid with either cash, CPF OA, or a combination of both. 

2. Eligibility for bank loan and Total Debt Servicing Ratio (TDSR)

To qualify for a bank loan, you will be required to submit documentation that you are currently employed and drawing an income. Depending on the type of income (fixed or variable), the loan amount that you will be eligible for will be different.

Under the TDSR framework, your monthly home loan instalment must not exceed 55% of your monthly income less any debt obligations (personal, car, renovation loans, etc). If you are earning a variable income (bonus, commission, allowance, rental income), your income will be subjected to a 30% haircut. The 55% TDSR will then apply to the remaining 70%, less any debt obligations.

Based on the maximum instalment you are able to pay per month, the bank will then calculate how much you can borrow.

3. In-Principle Approval (IPA)

You may want to engage your property agent or a mortgage specialist to help you get an IPA, which allows you to confirm the home loan amount you are eligible for. You would be required to submit personal documents including proof of income.

4. Cash Reserves

Besides the cash component of the bank loan, you will have to set aside cash for the stamp duties and additional fees. This includes any COV, buyer stamp duty, legal conveyancing fees, etc.

As you can see, it is not easy to buy a private property as a single. In fact, it is an extremely costly option. While you can rope in other people to jointly purchase the property, keep in mind that doing so would mean they have a share as well since it will most likely be a joint-tenancy.

In Summary

To sum up the article, here are the pros and cons that come with each option.

It takes a great deal of courage and determination for a single person to pursue homeownership. The road to securing a place to call home may not always be easy, but it is important to remember that the reward at the end is worth the effort. You should be proud of yourself for taking this important step towards a brighter future, and know that you are not alone in this journey. 

If you need any help or advice regarding your property options, do contact our PropertyLimBrothers team and we will be glad to help you with your portfolio planning.

The post How to Get a Flat as a Single Singaporean – Your Complete Guide to Property Options appeared first on Insights by PropertyLimBrothers.