It is no surprise that both locals and expatriates alike are enchanted with the thought of buying good properties in the beautiful country of Singapore. Whether for commercial or residential purposes, purchasing a property for sale in Singapore may entail a list of things and procedures to go through. Harry Rudd, an entrepreneur from Australia found the site and structure for his current restaurant in Singapore through a property on auction event that his agent informed him about in 2010, “I was very lucky that I was able to know about the place as soon as it was made available by the auction committee. I have a good agent, and I owe him that opportunity. But that doesn’t mean I did not go through a series of things to do and submit just to make all things legit for the business. Not being a native here in SG was, of course, more daunting but it was all worth it afterward. As with any foreigners who wish to purchase a property abroad, there are a lot of things to do before owning one.” According to the website singaporeexpats.com, eligibility to buy private property in Singapore is indeed something that cannot be fast tracked as there are governing laws to be followed (as written as guides to expats under procedure to purchase), “In the year 1973, the Singapore Government has imposed restrictions on foreign ownership of all private residential property in Singapore. Such ownership is governed by the Residential Property Act.The Act aims to give Singaporeans a stake in the country by being able to buy and possess their own residential property at an affordable price and also encourage foreign talent by allowing permanent residents and foreign companies who make an economic contribution to Singapore to purchase such properties for their own occupation. The Residential Property Act (RPA) is then amended on 19 July 2005 to allow foreigners to purchase apartments in non-condominium developments of less than 6 levels without the need to obtain prior approval. For a restricted property such as vacant land, landed properties such as bungalows, semi-detached and terrace houses, prior approval is still needed if foreigners wish to buy. Landed properties is a special class of residential property that Singaporeans aspire to own, and should remain restricted. Foreigners need to apply for approval from Singapore Land Authority before buying.” Marlou Samuel, 65, from America who wishes to retire in Singapore shared how he wishes to sell his commercial property and buy his own small flat soon. “For someone who has seen every corner of Singapore for the last 20 years, retiring here is more than desirable for me. I plan to sell my business next year and just live from the savings and pensions I have now and just enjoy a less stressful life in the outskirt of the city. I love the weather in Singapore and I love all the attractions and people here. Singapore is home to me, and I might as well live my remaining years here instead of moving back in Ohio, where I was from.” According to wikihow.com article titled How to Buy Property in Singapore, the very first step is appointing a property agent, “ The first step to any property transaction is appointing a property agent. As your representative throughout the process of buying and selling, it is crucial for him or her to be competent and experienced in the market. Stay with one agent per transaction because appointing more than a representative will lead to confusion and embarrassment since most agents in Singapore share the same portfolio. Be frank with your agent as to the kind of property you are looking for, such as dimensions, location, and price. Clear instructions will help your agent direct you to the ideal residence quickly and accurately. A good agent can also act as a consultant should you require any legal and financial advice upon purchase.” Indeed, the importance of having an agent has been reiterated throughout this article. However, hiring an agent is just one of the few tips you can follow. “Property sale in Singapore are always aplenty,” shared Mike Caplan-Lee, a real estate expert. “But aside from hiring an agent, you need a good lawyer to make sure you are legally guided into deciding on whether the property you are to pay will be free from any loopholes and unnecessary ambiguity. As you know, documents and contracts are surely involved in the process of ownership so you really need a legal expert to explain to you the legitimacy of the purchase especially if you are doing this for the first time. There may be some complex phrases and shady part of the contracts that may imply certain rules that you may not like in the long run so it is wise to find these things early on before you regret the decision. A legal expert will surely guide you through that.” Cheryl Marie Tay who wrote about Step-by-Step Guide to Buying a Condo for propertyguru.com.sg shared some important information about the mortgage payment, among others in this part of her article, “When you have picked a condo, you can ‘hold’ it for two weeks so other potential buyers are not allowed to view it. This entails an option fee of one percent of the agreed upon price. Within a month, you must secure your financing and pay a second option fee of four percent; failure to do so will see the first option fee you paid forfeited. Once you pay the second fee, a down payment of 15 percent (on your first property) or 45 percent (on your second property) is required. The rest will be loaned to you by the bank. Do note that both option fees must be paid in cash, while the down payment can be paid using a combination of cash and CPF funds. You are allowed a maximum loan of 80 percent of the condo price if it is your first property, and 50 percent if it is your second. There is also the Total Debt Servicing Ratio (TDSR). This means you can spend a maximum of 60 percent of your monthly income on repaying debts. However, if you are buying an Executive Condominium (EC), this figure is capped at 30 percent of your monthly income (inclusive of CPF contributions).Depending on the length of your mortgage, you will repay your loan at a fixed amount every month, subject to your bank’s interest rate. This could take a maximum of 30 years, though your loan tenure depends on your age.”
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AuthorLizzy an online blogger for food, sport, fashion and business Archives
September 2017
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