How to buy a private condominium in Singapore?
What is the differences between Private condo, Executive condo and Public Housing?
In Singapore, everyone here owns a property as soon as they are able to . There are a few choices of housing available here. There is the public housing, private condominiums and executive condominium as well as landed homes here available for purchase.
The Housing Development Board (HDB) develops public housing and are priced affordably. Each year they release new blocks of flats for sale for purchase in different estates.
There are a few criteria for a Singapore citizen to be eligible to purchase a brand new public housing by the HDB. The most common eligibility is the public scheme. It is to form a family nucleus in order to proceed. Another eligibility scheme is the orphan schemes, single Singapore citizen scheme and the Joint Singles Scheme.
There is also a Fiance/ Fiancee scheme, for unmarried couples to book a flat before having their legal vows. They then have to provide their marriage certificate at key collection to the HDB.
With all these schemes available, Singaporeans have the privilege to apply for the location they prefer and also the number of bedrooms types they require for their household.
How is a private condominium different from a HDB?
Private condominiums are another type of property that Singaporeans and foreigners are able to purchase and own. Either owning it for own stay or investment is totally up to the individual.
It is gated with security systems and personnel and on top of that facilities. Common type of such facilities are tennis courts, gym, swimming pool and clubhouses for the residents to enjoy anytime they want. Unlike the HDB, private condominiums are sold by property developers.
In land scarce Singapore the private condominiums come at a premium price compare to the HDB. Anyone can buy a private condominium, as long as you are above 21 years old. Whether you are a Singaporean, Permanent Resident or a foreigner you are able to buy one in your own name.
There are a few ways to go about acquiring a Singapore private condominium property. Firstly decide what kind of financing that you need. You can pay them all in cash or take a bank loan for it.
The banks in Singapore are able to give loans of up to 75% of the purchase price. It is also depending on the income received by the applicant. Before granting you the required loan amount, you will need to submit the necessary documents. Such as your salary slip, Notice of Assessment from the IRAS, credit cards statement as well as any credit statements such as study loans, mortgage loans.
Taxes to pay for the property purchase
In Singapore there are taxes to pay for the purchase of the property. These tax payment is to be made out to the Inland Revenue Authority of Singapore (IRAS). All purchase transactions in Singapore are required to pay for the buyer stamp duty.
Depending on the profile of the purchaser, you are required to pay for compulsory BSD and also pay for the Additional Buyer Stamp Duty (ABSD) if necessary.
For eg; If you are a permanent resident here and it is your first property, there is the BSD and the ABSD to add on top of the purchase price.
Do get in touch with us to know more about purchasing a Singapore property. We hope to work together and be able to assist you all the way to your key collection.