A foreigner who wishes to purchase a landed residential property is required to seek approval under the Residential Property Act, however, there are types of property such as a condominium unit, which a foreign person can purchase without approval.
In planning your budget, you also need to consider how long do you intend to hold on to the property. The Singapore government levies a 4-12% Seller’s Stamp Duty (SSD) for any individual selling a home within the first three years of purchase. You need to consider the property taxes too.
When you have chosen the mortgage product that works best for you, you’ll need to make your application. Typically, this will mean that you must arrange a stack of paperwork and visit the bank in person to get approval. Each bank will operate slightly differently, so call your local branch to check if you need to make an appointment in advance.
If you’re buying a property in Singapore, it’s important to have a local qualified lawyer to help you. The bank will usually refer a lawyer in their panel list, if you have a lawyer referred by your friend, ensure that the lawyer is in the bank’s panel list.
Secure the property by signing the “Option to Purchase” which an estate agent will assist you with. Option to Purchase (involving your payment of 1 to 5 % cash to the Seller, which reserves the property exclusively for you as the buyer), and then exercising the option (typically within two weeks) by way of parties entering into the Sale and Purchase Agreement.
The last step is usually performed by your lawyer and this involves the completion stages like finalizing documents as well as handling over the keys.
The lawyer will draw up the option, confirm the property ownership and that it can be legally sold Pay the 1% optional fee to reserve the property Pay the remaining deposit within the next 14 days to move on with the process