If you would like to buy private properties in Singapore, you will need an effective and simple guide to help you successfully choose a property and close the deal. Foreigners are allowed to buy apartments that belong in non-condominium developments that are less than 6 levels without having to get prior approval. Landed properties is under the special class residential property, and Singaporeans wish to own one that is why vacant land, semi-detached bungalows and terrace houses are remained restricted to any foreigners; an application for approval is needed from the Singapore Land Authority. Here are simple steps on how to buy private properties in Singapore:
- Appointing a property agent is the first step. He or she will be the representative in buying and selling that is why it’s important that this person has the experience and competence in this industry. Choose only one to avoid confusions.
- The agent will help an individual find the most private condominiums. It is highly recommended to check the furnishings and other special arrangements. Do not hesitate to ask about the price and renovation.
- Prepare at least 1% of the property’s price wherein you have the option to purchase from the seller as well as 14 days to decide on it.
- You don’t need to do anything since it would be best to leave things to the solicitor. Just wait to complete the sale within 8-10 weeks. Moreover, you can coordinate with the financial institution if necessary. In the Option to Purchase, you can seek permission for the last time to inspect the property before the completion of sale. In here, some necessary taxes should be paid.
- As a foreigner wherein you earn income in foreign currency, you can apply for a bank loan. You can secure a loan from a Singaporean bank up to 80 percent of the purchase price. The amount of loan is subject to valuation of the lenders. The majority of foreign borrowers can secure a loan up to 70 percent of the purchase price in Singaporean Prime Districts and its lending interest rates stands at 3.5 to 4 percent. The rates being offered are lower than the other regional cities whose prime lending rate is 6.5 percent.
- After gaining ownership of the property, tax should be filed on annual basis. The estimated annual rent of your property is taken from your yearly value wherein the amount payable is calculated by multiplying the value of your property with its tax rate each year. It is 10 percent annually for the tax rate but to those who occupy the property themselves, concessionary rate of 4 percent may be applied.
- Take note of the rental yield on the unit you are purchasing. Let your agent give you close estimation of monthly rental. Prime locations demand high rentals due to desirability and great demand. The Inland Revenue Authority of Singapore treats rentals as part of income and deals income accordingly. For non-residential foreigner who passed for long stay or without employment, 20 percent tax rental is rendered. Tax is lower for a foreigner with valid employment.
All assets and properties you want to acquire should undergo a process and an application for approval to own one.