There are many reasons to invest in the real estate in Singapore. Singapore has a booming economy, serving as a melting pot for different cultures in South East Asia. There are many kinds of properties that you could invest in. For instance Housing Development Board (HDB) flats in Singapore are becoming popular in so many locations.
To know how each differs, here are some of your real estate options:
Property In Singapore : Build-To-Order
BTO under the HDB in Singapore is an allocation system wherein applicants can apply to a specific location of their choice, only to wait for a specific time before they can move in. Also, the construction of the apartments can start once 65-70% of the apartment has already been booked.
Property In Singapore : DBSS
Design, Build, and Sell Scheme was introduced by Singapore’s HDB in 2005 wherein public housing was developed by private developers. The reason for the DBSS is that it has better designs and location. Tampines, Ang Mo Kio and Bishan are among the areas with 13 DBSS projects.
Read: 5 Property Websites In Singapore To Buy, Rent & Sell Houses
Property In Singapore : Executive Condominiums
It is safe to assume that when you decide to stick with an Executive Condominium, most likely after paying the down payment and covering for its installments, you’ll realize that it is somewhat an expensive option. According to its proponents, ECs are meant for those who can afford to have a car.
The Executive Condo was meant for those individuals who still can’t afford private property but would like to enjoy the perks of a private condominium like having playgrounds, swimming pools and other similar amenities. EC is different from BTO properties in a way that from the sixth to 10th year, EC’s will have to be re-sold to those who are permanent residents and upon the 11th year, ECs will be open for both foreign individuals and companies.
Perks of Investing in Singapore’s Real Estate?
Just like in any part of the world, having a private property is a good decision as this could provide you with different perks. For instance, looking at the property cycle in Singapore over the last few years, there is a steady rise in real estate’s value. This could provide capital gains after a few years of acquisition. If you are interested in having a passive income, it is also possible that you choose to look into the possibility of having your property rented out.
What to Look For In Each Category of Property In Singapore?
When it comes to investing on a real estate property, it is a good idea to look for different factors such as the access to MRT stations, schools and other related facilities. Also, try asking yourself if you are looking to resell the property. Try to see what your options are for each property since not all properties can be resold immediately to a foreigner or a company. Of course, you should evaluate your ability to pay for the property as well.
Costs you need to check when considering a property in Singapore
Just what are the costs involved when getting a property in Singapore? For one, you have to check your stamp duty rate. Based on the market value of the property, you could compute for your Buyer’s Stamp Duty. Let’s assume that you purchased a property for $2.5 million. How does a BSD computation look like? 1% of the first $180,000 added to the 2% of the second $180,000 and 3% of the remainder is the computation for the BSD you will get.
Given this scenario, you’ll be paying roughly around $69,600 for the BSD alone. Also, you have to take into consideration the Additional Buyer’s Stamp Duty meant for residential properties which have a different computation depending on whether you are a foreigner, a citizen or a permanent resident. After looking at the stamp duty involved, you may also want to check the lawyer’s fee.
After assessing all of these, you can then have an idea of which type of property in Singapore you could afford.Recommend0 recommendationsPublished in