How to Buy Private Property in Singapore?

This article will explain to you the steps to buy Private 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. Do Your Research

Research what you can expect during the home buying process and study all the stages of buying a Condo. It may be a dream you have had since childhood. Perhaps, you have rented for most of your adult life and now want to experience the joys and satisfaction of home ownership. 

Spend some time researching on the areas you are interested in living in and what type of properties you think you might want. Come up with a shortlist of the things that matter to you in a home; this will help you a great deal when you start viewings.

It’s really important to come up with a list of features you need in a home. How many bedrooms do you need? How big do you want your kitchen? 

Once you’ve made a list of the must-have features, think about the kind of neighbourhood you want to live in, the commuting time to and from your work, and the nearby amenities.

2. Work out what type of property you would like to live in

Shopping for a new home can be like a safari hunt. But to bag that trophy house you’ve been dreaming of, you’ll want to understand what it is you’re looking for.

Private Residential Housing
The different types of private residential property can be subdivided into two main cadres: landed property and condominiums/apartments. Condominiums and apartments are really popular with private property enthusiasts. These are basically the more luxurious version of the HDB flats. If you want to buy a condo in Singapore, these do not have restrictions on foreign ownership and are the common choice for expats.

Landed properties
Landed properties include bungalows, houses, cluster houses, terrace houses and shophouses. While these require more maintenance, they are also considered unrivaled in terms of size, spacious living and privacy. While Singaporeans can purchase landed properties without restrictions, foreigners are required to seek approval from the Land Dealings Authority Unit before they can purchase, unless the house is part of a larger condominium project, or located at Sentosa Cove. For these properties, buyers can obtain a fast-track approval from the Singapore Land Dealing Unit.

3. Understand What You Can Afford

This is unlike from qualifying for a loan. This is calculating how much of your budget you will commit to your home and how much money you want for other things. If you love fishing or a hobby, factor the required budget for your favourite pastime into your overall household budget. With that in mind, think twice about buying a home the bank says you can afford. You will be happiest in the home that allows you to enjoy life to its fullest.

You can start by using our affordability calculator tools, which lets you calculate what you can afford. The calculator factors in government regulations to check how much loan you can get, as well as the taxes and duties that you are required to pay, so it will make your life easier.

4. Choose the Right Home Loan

Take time to interview several lenders before signing with one. You can be pre-qualified by your bank or mortgage broker. That does not obligate you to choose them for your home loan.

Many prospective homeowners who apply for a mortgage tend to show concerns before they agree to sign. A common question is “how much interest will I end up paying?”

Chances are you won’t be able to calculate these figures off the top of your head, but you can use Ping Mortgages calculators that can help you quickly and easily answer these questions. 

Also, take note that a house for sale in Singapore isn’t cheap. You can expect the downpayment to be around 20% of the full price of the property!

5. Get a Good Real Estate Agent

One of the most critical steps in renting property in Singapore is finding a great property agent to represent you. Real estate agents are important partners when you’re buying a property, as they will work to get you the best deal. Discuss your goals with your Ping Property Agent. We are here to consult with you at each step of the process.

When buying property in Singapore, Ping Property agents can provide you with helpful information on the Singapore property market and neighbourhoods that aren’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable.

Besides, your Ping Property agent will walk you through the entire process from helping you shortlist properties to negotiating and post move-in support. Get in touch with us!

6. Shop for Your New Home

Take your future plans and lifestyle into consideration as you view homes. If you plan to move in a few years, you may want to choose a simple, easily affordable home that will always be in demand and fairly easy to sell. It is best to have a second and third choice in mind that you can go to if you have to walk away from negotiations on your first choice.

Shortlist a few potentials and arrange for viewings – preferably in the daytime so you can also check how hot or noisy the place gets.

With older condominiums, pipes can start to crack and leak after 12-15 years – so be sure to ask about when the last renovations were done. Landed property requires you to check even more thoroughly, since Singapore’s climate tends to be very unforgiving on houses.

7. Negotiate & Get an Option to Purchase (OTP)

Buying a home is an emotional experience. Trust your home buying expert with Ping Property for guidance. They work with lenders, home sellers, and other real estate agents every day. They will advise you on negotiation strategies and be there to provide objective advice that protects your best interest in the transaction. Most contracts have contingencies, and the negotiation is not complete until all contingencies are met.

Once you’ve found your dream home, it’s time to buy that property. You’ll have to:
1- Review the terms of the OTP (or have your lawyer/agent do it)
2- Pay the seller 1% of the purchase price (cash) as the Option Fee

You now have 14 days to sort out your home loan and decide whether to proceed. During this time, the seller isn’t allowed to issue an OTP to anyone else.

But just a reminder: if you back out after the OTP, you won’t get your Option Fee back!

8. Exercise the Option

Once you’ve got the Letter of Offer from the bank, it’s time to exercise the option!

This time, you’ll need to pay another 4% of the sale price in cash as the Option Exercise Fee.

Once you do, your lawyer will help you to lodge a caveat on the property. This is basically an official declaration to the world that says you’re purchasing it – it protects your interest in the property until the transaction is complete.

9. Completion

The day that you have been waiting for to own your new home is finally here. 

It’s time to head on down to the lawyer’s office to settle things. Bring your cheque book along with you, as you’ll have multiple to write for:
1- Legal fees to your lawyer
2- Fees payable to Singapore Land Authority
3- Mortgage Stamp Duty to IRAS (if you took out a loan)

If you engaged an agent, the seller’s agent will split his commission with your agent.

After that, you’ll collect the keys to your new private property!

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.

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