Your Complete Private Property Buying Guide in Singapore

Let’s be honest, buying a private property can be a life-changing experience. As a buyer, it is vital to consider all options available to you. This important moment should be dealt with with the utmost clarity of mind and not clouded by unnecessary detail. This means you’d need to do ample research and speak to the right advisors while paying attention to your needs and preferences. For instance, location may be an important factor for you when looking into new property developments in Singapore. Others are more particular about the investment value it can offer after 10 years.

With so many moving parts in the discourse, a handy guide can help streamline the process for you. Read on!

1. Understand The Market

Before investing in a new property, you need to know what is on the market. Explore the available properties and  locations, and narrow down to those that are within your budget and aligned with what you want. Make an appointment to view the property when you’ve found something you like. You can also browse for private property listings online to kickstart your research. New Launches Review has you sorted for that as you can search for condo units from the East of Singapore to those in the North, West, South and central regions. 

Check Eligibility

There might be no restriction when buying a strata landed house, condominium, or flat unit in an approved new condominium property development, whether you are a Singapore Permanent Resident (SPR), Singapore citizen, or a foreigner. However, if you are looking to buy landed property as a foreigner or SPR, you must meet certain conditions. By buying landed property, foreigners should have made extraordinary economic contributions to Singapore and requested approval from the (LDAU) Land Dealings Approval Unit. SPRs should have their permanent resident status for at least five years.

3. Collate Costs Involved

It would be best to consider all the costs involved when buying private property in Singapore. If you are uncertain about the different market-related bank loans available, you would require the services of a conveyancing lawyer. 

In other words, the price of the private property is not the only cost to consider. Additional costs include:

  • The conveyancing fee
  • The mortgage stamp duty
  • Any caveat lodgement charges (a legal document lodged with the Singapore Land Authority)
  • Any administrative fees
  • Any legal fees

4. Analyse Available Budget

Now that you understand the total costs involved when investing in a new property development, the next step is to understand whether you have enough money to finance the transaction. Things you need to consider are:

  • Available cash savings
  • Monthly CPF contributions im Ordinary Account
  • Available savings in CPF Ordinary Account 
  • Salary
  • Additional funding or investment sources
  • Outstanding debt

5. Decide On Financing Options

If you’re researching loans, look into bank loans with competitive interest rates. Between floating-rate and fixed-rate housing loans, the former are typically higher but they offer a fixed monthly repayment rate. In comparison, a floating rate will be subject to future interest rates. It would be best if you also considered your Total Debt Servicing Ratio (TDSR) by the Monetary Authority of Singapore. It is calculated that no more than 60% of your income can be used for loan repayments. 

6. Secure Option-To-Purchase (OTP)

You must pay an option fee to obtain a secure options-to-purchase (OTP). Usually, 1% of the purchase fee is paid in cash. The seller may not sell the property for two weeks after this option fee has been paid. Once you have secured your OTP, ensure your conveyancing lawyer reviews the terms.

After you exercise the OTP, you will also need to pay the Buyer’s Stamp Duty as well as Additional Buyer’s Stamp Duty (ABSD) depending on your citizenship status, within 14 days of procuring the OTP.

7. Conduct Final Inspection

If you are buying a private property in Singapore, you must conduct a final inspection, especially if it is an older property. But what do you need to check when you conduct an inspection? Some areas to inspect include:

  • Cracked tiles
  • Pest infestation
  • Water leakage
  • Faulty doors and windows
  • Faulty electrical supply
  • Cracks in ceiling

8. Make Your Payment & Collect Keys

The conveyancing lawyer will conduct the relevant legal checks to ensure proper property transfers to you. The lawyer will also do a bankruptcy search to ensure the transaction can be performed smoothly. As such, if you, the buyer, were found to be bankrupt, your official assignee must consent to the sale.

To complete the sale successfully, you must submit all the necessary documents and funds, including the balance that is not covered by your bank loan and CPF, as well as the legal fees. Once completed, your lawyer will assist in performing the transaction and registering you as the new property owner. You will then receive your house keys.

Congratulations, New Private Property Owner!

Are you looking to invest in private property in Singapore? Get first access to new property developments and leverage our unbiased, quality reviews on our website, alongside analysis on private property trends. Whether you are looking for cluster housing development or new executive condo launches, we have you can trust us to deliver the information you need.

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