Singapore is the second most expensive country to dwell in. It is because the country is the global business hub. Renowned tech giants Google, Microsoft, Apple Inc., Meta, and IBM have established their Asia-pacific headquarters in Singapore.
This is one of the many reasons why people all around the world desire to reside here. If we had to list other reasons, it would include healthcare facilities, communications infrastructure, excellent public transport system, and of course, the culture.
So, if you want to improve the quality of your life, Singapore is the ideal place. And your first goal should be to obtain the country’s home ownership.
Continue reading this article to learn the whats and hows of buying a house in Singapore.
What Is The Real Estate Market Of Singapore Like?
Buying a house is a massive financial investment. That’s why it is crucial that you conduct market research before making up your mind.
According to recent reports, Singapore’s real estate market has been growing steadily since 2020. In 2021, approximately 28,734 ex-pats invested in real estate, leading to nearly 2 billion USD sales.
In the Asian region, Singapore’s property market is consistently stable, making the country a safe place for property investment.
What Is The Cost Of Buying A Property In Singapore?
Typically, the location has a significant impact on the property price. The apartments and condos located at the heart or center of the country are often high in demand and, thus, expensive. If you are willing to commute, you can find an affordable yet luxurious property further out of the city.
Apart from the property price, you also need to consider the necessary taxes and fees to pay during registration. This can possibly increase your cost from 7 to 20%.
It means you need to secure a singapore housing loan to invest in your dream home. According to your requirement, banks and financial institutions can offer you different loan options suiting your risk tolerance, monthly installment budget, and credit score. However, before you select any option, you must compare the different options and make a well-informed decision.
Can An Ex-pat Buy A House In Singapore?
Yes, ex-pats can purchase a property in Singapore; however, their options are limited compared to locals. Some of the restrictions imposed by the Residential Property Act include the following:
- Getting government approval for buying an apartment in buildings with seven or more stories.
- Permission from the Singapore Land Authority for purchasing vacant land.
- The minimum age requirement to buy a house is 21 years old.
If you are interested in buying a condo, there are no restrictions; though, you need to comply with general terms and conditions.
How To Purchase A House In Singapore?
As you are new to the country, hiring a real estate agent to streamline the house purchase process would be best. They can show the best options according to your lifestyle, budget, and other preferences. Once you have finalized a house, you need to follow the steps given below:
- Negotiate The Price With The Seller: The first step is to set the property price. As you need to pay taxes, fees, and brokerage charges, making the deal as favorable as possible is important.
- Secure The Option To Purchase: After deciding the property’s final price, you need to pay 1% of the cost to secure the property. This condition will later on become a part of the purchase agreement.
- Pay The Down Payment: When you secure the option to purchase, both parties agree on a timeline within which the buyer will pay the 9% down payment. So, you must fulfill this requirement to confirm your intention to purchase the property.
- Work With A Lawyer: As a non-resident, working with lawyers is vital to close the property deal. They can draft the agreement for you, ensuring favorable terms & conditions. They’ll formulate the options, prepare property title transfer documents, and register them to confirm the house’s ownership. It will ensure that you are legally the owner now.
Once every necessary documentation is submitted, it will take around six working days to complete the property registration procedure and title transfer.
Note: If you are purchasing a resale property, you must thoroughly inspect the place. You can also take the help of a surveyor who is well-versed in the area and provide you with valuable suggestions.
To Sum It All Up
Considering the future of real estate in Singapore, purchasing your own house is indeed a smart decision. Nevertheless, the process is likely to be more complex for an ex-pat as compared to its citizens. So, you must follow this guide for a hassle-free process.