Invest in Singapore Private condo

Singaporean, Permanent Resident or foreigner are eligible to invest in Singapore private condo.

Private condo in Singapore can be classified into 2 categories:- 

  • Uncompleted or New launch property which is direct sale from developer
  • Resale private condo from secondary market direct from the home owner.

Uncompleted or New Launch private condo 

There are advantage of buying a private new condo during developer preview or at point of new launch. You get to be among the first to pick the choice units and enjoy attractive early bird discounts. 

Price are usually lower – developers normally price to stimulate demand

Low cash outlay  – an initial 25% down-payment of the purchase price, Buyer Stamp Duties and Legal Fee is require within 2 months from signing the option of purchase. No payment require until another 9-12 month time.

Leverage on low home loan interest rate & progressive payment scheme. Repayment is done progressively based on the construction stages as per URA guideline.
Developers’ guarantee period – defects rectification upon notice of temporary Occupation Permit.

    Resale/Subsale (Immediate occupancy)

    The advantages of invest a private condo unit from the open market: Immediate owning your home bring sense of satisfaction, security and stability.

    For buyer who wish to rent out the purchase unit for the purposes of investment, this can be done as soon as transaction completed within 3-4 month time.

    Generally, the resale price vary on market sentiment, seller & buyer discretion and the unit condition. Picking the right location, unit and eventually one have to take into consideration the loan (if any)/repayment of the full purchase amount upon completion of transaction.

     General procedure for buying resale condominium in Singapore

    When a buyer decide to buy a property, he gives a cheque of 1% of the purchase price to the seller. In return, the seller issues an Option to Purchase to the buyer. The OTP states that for 14 days, the buyer can choose to proceed with the sale. If not, the buyer loses his 1% deposit.

    If the buyer chooses to proceed with the sale, he hands over 4% of the purchase price to the seller’s lawyer. Thereafter, buyer to follow up on paying stamp duty, find a solicitor, get bank loan etc.

    Other cost for buyer is the maintenance fee for common facilities of the condo, valuation fee, agency commission fee, administration and legal fees for completion of transaction.

     

     

    *The information provides herein are for general reference purpose.  It does not constitute any financial or investment advice. Buyer to seek financial institute for advice of any sales and purchase eligibility in making any investment or other decision.