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Nov
12
Buying Real Estate in Singapore
November 12, 2008 |
Buying real estate in a foreign country can be a daunting task. You may not know the language, the culture, or the real estate laws and regulations. A qualified real estate broker in the area can assist you with the language and culture barrier so that you can make the best deal possible. As far as real estate laws and regulations in the country, we’ve highlighted some of the more basic ones so that you can feel more confident when navigating the real estate market in Singapore.
Properties that foreigners can purchase
Singapore has become a much friendlier place for foreigners to buy real estate. As of 2005, foreigners no longer need approval to purchase apartments on the island, which has really opened up the real estate market. These apartments are known as strata-titled properties. However, other properties, such as homes, vacant lots, and bungalows, still need approval for purchase from the Singapore Land Authority (SLA). This approval process is designed to give citizens of Singapore an equal footing with real estate purchases in the country; otherwise, foreigners with greater liquidity and other financial resources would be able to purchase the majority of real estate on the island. Not only that, but the stiffer competition would also raise prices to an unaffordable level for the local population.
Housing development projects not open to foreigners
One area of real estate that’s not open to foreigners is the public housing arena. That means that non-citizens cannot purchase Housing Development Board (HDB) apartments. The only way to circumvent this rule is that if the non-citizen or non-permanent resident plans to live with a Singapore resident or citizen as part of a nucleus family.
Financing the purchase
Like in most western countries, buyers can apply for a mortgage of up to 80% of the value of the property. However, the actual ease of securing a loan depends upon if the property is a freehold property (held in perpetuity) or a leasehold property (held usually for 99 years). Mortgages for freehold properties are easier to obtain, as some banks will not approve some leasehold property deals with less than a 60-year lease. The best piece of advice is to check the length of lease term of a leasehold property before moving forward with the purchase decision.
About the writer: Homelist24 lists and ever-changing list of properties for sale and rent, whether it is homes for rent, apartments for sale, or houses for sale.
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2 Comments so far
Buying a property in turbulent times Finding Properties for Sale or Rent in Singapore Getting the ‘real’ in real estate Renting property in Singapore Singapore is Asia’s most liveable city
I found your blog on MSN Search. Nice writing. I will check back to read more.
Eric Hundin
Thanks Eric. Glad you found my blog. Hope to hear from you again.