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How to Buy a Residential Property in Singapore?
When buying a private residential property, there are many factors to consider and look into. You should familiarise yourself with these considerations which may affect your purchase.
This article will explain to you the steps to buy Residential Property in Singapore. Well, they are not so complex though. Follow our guidance and you’ll realize your dream! Let’s go through the list shall we?
1. Eligibility
When buying a property, there are many factors to consider and look into.
If you own a HDB flat, a DBSS flat or an Executive Condominium, you have to fulfil the minimum occupation period set by HDB before you can purchase any private residential properties. Visit HDB’s website to find out more.
If you are not a Singapore citizen, you have to obtain approval from the Singapore Land Authority in Singapore Land Authority (SLA), before you can buy landed houses including but not limited to strata landed houses.
If you own a HDB flat, a DBSS flat or an Executive Condominium, you have to fulfil the minimum occupation period set by HDB before you can purchase any private residential properties. Visit HDB’s website to find out more.
If you are not a Singapore citizen, you have to obtain approval from the Singapore Land Authority in Singapore Land Authority (SLA), before you can buy landed houses including but not limited to strata landed houses.
2. Finances
Before buying a property, you should check the property prices in the areas of interest and compute your finances and fees payable. You should buy within your financial means.
3. Property prices
URA provides free information on the property market, such as prices of private residential units, for you to do your research before purchasing your unit.
4. Using your CPF
You may use your CPF Ordinary Account (OA) savings to purchase your private property under the Private Properties Scheme. There are limits on the amount of CPF savings you can use to buy a property. Information on the use of CPF monies is available here.
5. Bank loan
You should enquire with your bank on your eligibility for bank financing as early as possible, preferably before you pay the upfront deposit or commit yourself to the purchase. Before you proceed to check with a bank on the size of your loan, read the guide on housing loans and other important information.
6. Stamp duty
Stamp duty is a tax on dutiable documents relating to any immovable property in Singapore and any stocks or shares. Here are some stamp duty types related to property purchase:
Buyer’s Stamp Duty. You are required to pay Buyers’ Stamp Duty (BSD) after signing the agreement.
Additional Buyer’s Stamp Duty. You may also need to pay Additional Buyer’s Stamp Duty after signing the agreement depending on your profile:
– Whether you are buying as an individual or as an entity
– Your residency status e.g. Singaporean
– Number of residential properties owned
Seller’s Stamp Duty. You may need to pay a Seller’s Stamp Duty (SSD) if you sell or dispose of the property within 4 years of acquisition (for property purchased between 14 Jan 2011 and 10 Mar 2017, both dates inclusive) or within 3 years of acquisition (for property purchase on or after 11 Mar 2017).
Learn more about stamp duty on Inland Revenue Authority of Singapore (IRAS) website.
Buyer’s Stamp Duty. You are required to pay Buyers’ Stamp Duty (BSD) after signing the agreement.
Additional Buyer’s Stamp Duty. You may also need to pay Additional Buyer’s Stamp Duty after signing the agreement depending on your profile:
– Whether you are buying as an individual or as an entity
– Your residency status e.g. Singaporean
– Number of residential properties owned
Seller’s Stamp Duty. You may need to pay a Seller’s Stamp Duty (SSD) if you sell or dispose of the property within 4 years of acquisition (for property purchased between 14 Jan 2011 and 10 Mar 2017, both dates inclusive) or within 3 years of acquisition (for property purchase on or after 11 Mar 2017).
Learn more about stamp duty on Inland Revenue Authority of Singapore (IRAS) website.
7. Legal fees
If you engage a lawyer, you should clarify the scope of services to be provided and the legal fees payable. For more information on the role of a lawyer in a property purchase, you may refer to the Law Society of Singapore’s ‘Know the Law NOW!’ booklet, available here (see Chapter 33, Buying and Selling a House).
8. Engaging a property agent
If you engage a property agent to represent you, you should check that property agency and agent are licensed and registered with the Council for Estate Agencies (CEA). Note that property agents are not allowed to offer you any benefit, in cash or kind, to induce you to engage their services. Visit the CEA website for more information on engaging a property agent and the role of an agent in a property transaction.
Well, you have Ping Property in Singapore!
Buying a home without a realtor is a big task, especially if you’re inexperienced. If you want to get the best deal on your home, it may be wise to partner with a suitable property agent.
Ping Property realizes that DIY might not be suitable for everyone. If you require assistance from our experienced property agents for any step of the process, just contact our trusted agents if you need more help.
Check out some of our services here:
Property Agent Service
Buyer Documentation Service
Seller Documentation Service
Landlord Documentation Service
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