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Fundamental Guides in Purchasing Singapore Property
In Singapore, owning a property won’t be a very complicated process as long as you strictly adhere to the rules and regulations and also follow the correct guides on how to attain specific property. Aside from these, it is essential to learn about comprehensive transaction procedures, property and rental taxation and also real estate agents.
Below is a list of a few important guides in purchasing property in Singapore:
- Appoint a property agent. This means that the property agent will work as a representative throughout the procedure of buying and selling. Moreover, it is very crucial for the agent to be efficient and well-experienced in the market. It is recommendable to stay with a single agent for each transaction because appointing more than one representative would merely lead to confusion and embarrassment mainly because most agents in Singapore share identical portfolio.
- It is critical to be straight with your agents in terms of the kind of property you are looking for such as the cost, location and dimension of the property. Take note that exhaustive instructions shall greatly help your agent to lead you the ideal residence instantly and more accurately. A reputable agent could also serve as a consultant in the event clients require legal and financial advice upon the purchase of the property.
- Ensure to come up with a decision on the property you are planning to purchase. Based on your requirements, the agent will search for suitable living spaces. Further, buyers will be cordially invited to have a look of the units. And, during inspection rounds, observe special arrangements, furnishings and fixtures. Remember that it is not advisable to be reluctant when it comes to negotiating for renovation and cost. Property investments are considered lifetime so you must ensure that you are really happy with the unit before agreeing with the purchase procedure.
Offer to Purchase or Option to Purchase
- By the time you have made up your mind to buy the property, it is vital to prepare approximately 1% of the cost of purchase as condition in furtherance of the so-called Option to Purchase from the seller. Whereat, you shall be provided with fourteen days or two weeks to come up with a decision whether you still like to purchase it or not.
- If you still like to do so, you should carry out the option by means of signing it and sending it to the solicitor of the seller containing the other four percent by up to nine percent of the cost of purchase. Eventually, you may then ask your solicitor or agent to draft the Offer to Purchase transparently affirming the terms and conditions and also the price. Nearly all agents may recommend you to a credible solicitor in case you wish to negotiate any.
Work out the transaction.
- Enable the solicitor to perform his job. He will carry out the sale in approximately eight by up to ten weeks by conforming with the financial institutions if necessary or through lodging an admonition on the property. Indeed, you may check the property once more before the arrangement of sale if you ask permission in the Option to Purchase. Make sure to examine the items that the seller has agreed to sell such as the property’s furnishings. Afterwards, within 2 weeks of the signing of Sales and Purchase Agreement or Option to Purchase, it is crucial to pay a three percent cost to the Inland Revenue Authority of Singapore for the stamp duty if the property goes up over S$300,000. Also, you need to pay your solicitor with S$3,000 per transaction.
- You may apply or request for bank loan.
- You can get a loan by up to 80% of the cost of purchase from a Singaporean bank if you are a foreigner who earns compensation in foreign currency. Moreover, the loan amount is deemed as contingent on property valuation by the bestowers.
File for property tax.
- It is required to file for a property tax on an annual basis after acquiring property ownership. It is worthy to consider that the payable amount is calculated by multiplying the annual value of the property with the tax rate. Keep in mind that the yearly value (annual) is taken to be the estimated annual rent of your property. Additionally, this is ten percent annually; but, for those who inhabit the property, you are recommended to apply for a four percent concessionary rate.