How to Buy Property in Singapore for Investors
If you’re interested in serviced apartments in Singapore, there are some options for
purchasing property there. Keep reading to learn more about how to buy property in Singapore. Singapore is a growing market, and it is prime for investors at this current time.
Find a Property Agent
The first thing you’ll want to do is find a property agent. This is a very important part of your buying transaction. You need to choose someone who is an expert at how to buy property on the market, and be sure to be upfront with him or her about what you are looking for. If you need advice about legal or financial matters, this person is a good touchstone.
Choose a Property
Next, you want to choose a property. The property agent can show you what is available. Be sure to look closely for signs that a property is not worth its cost. Also, be sure that you are open to negotiating price and other items, including furnishings, etc. Before agreeing to buy the property, make sure you are 100% satisfied.
Make an Offer
Next, you’ll want to make an offer. In Singapore, it’s standard to offer to put down 1% of the purchase price. You can allow your purchasing agent to help you come up with an offer of purchase, too. This will be your best move if there are other people who may be interested in the same property.
Complete the Transaction
Then, you’ll want to complete the transaction. Let’s hope that your offer was accepted. You’ll need to inspect the property one last time, and also you’ll need to finalize any plans with financial institutions who may be funding you. Be sure that you are 100% sure that you want the property, and don’t leave any stone unturned. You will also have to pay a stamp duty of 3% of the purchase price to the national government of Singapore. In addition, a fee of $S3000 is required to be paid to your solicitor. This is also Singapore law.
Apply for a Bank Loan
Finally, you’ll want to apply for a bank loan. In Singapore, you can borrow up to 80% of the purchase price. Banks in Singapore offer competitive rates, so you can expect to pay 3.5-4% interest. This is in contrast to Hong Kong, which offers rates around 6.5%.
File for Property Tax
Next, you’ll want to file for property tax. The Singapore rate on property tax is 10% annually, but if you live in the property, you can apply for a lower rate (4%).
Rent Out the Property
Finally, you’ll want to rent out the property. Take note of current rental prices, and be sure that you are able to make your payments on the property while you own it. Do also note that if you are a foreigner, the government charges tax on rental property and income. Good luck!
As you can see, Singapore is a prime spot for real estate, and you won’t want to miss out. Just follow these simple steps, and you’ll be able to invest in high-quality property. Then, you will earn some money by renting out your property. Good luck.