“What kind of deposit do I
need to pay, and what are
some of the costs I need to
keep in mind?”
It’s recommended that you put
down at least 30 percent of the
purchase price to safeguard
yourself against market downturns
and possible increases in interest
rates. The banks will also look at
your Total Debt Servicing Ratio
(TDSR) to determine how much
you may borrow; a foreigner can
usually borrow up to 80 percent
of a local bank’s valuation of a
property depending on their
TDSR.
Allow for additional expenses
including maintenance of the
property, insurance and taxes.
If you live in your property, the
Expat Realtor can also assist you with buying a home.
They access an extensive database and will give you a
good idea of what’s on the market. Call 9171 3392 or
email [email protected].progressive tax rate starts from
four percent of the annual value
of the rental. If you rent it out,
the progressive rate starts at 10
percent. Recent government
regulations have led to foreigners
being charged an Additional
Buyers’ Stamp Duty of 15 percent
on their first purchase, but for
some nationals and PRs this can
be waived, so be sure to speak to
an expert about the regulations
before you commit.Associated Costs- Solicitors’ fees
- Mortgage solicitors’ fees
- Transfer fee and stamp duties
- Government department fees
- Transfer and mortgage
registration fee
“I’ve found my dream home!
What happens next?”
Once you’ve found a property
that interests you, confirm its
value through a bank and check
the Inland Revenue Authority’s
website (iras.gov.sg) for the last
transaction price of a similar
property. Once you and the seller
have agreed on a price, you will
need to pay a one percent non-
refundable deposit to secure
it. You are usually allowed a
two-week option period to pay
a further four percent, then a
further eight to 12 weeks to pay
the balance. You should have a
lawyer on hand to advise you
during this time.CITY GUIDE 2018 83FIND YOUR HOME