Planning to own a property in Singapore? Here is cost what you will incur
Buying a property is a significant financial commitment. At one point or another, you will require a house to call home. The same case goes for those living in Singapore and foreigners who plan to live in the country. Like in other counties, owning a home in Singapore is not easy. You need courage, knowledge, patience and most importantly the finances to materialize that dream. Not unless you won a lottery, purchasing a home is a long-term commitment which needs to be planned carefully.
Before you even begin to search for your dream home, it advised that you know the basic in regards to the cost of buying a property in Singapore. This way, you will quickly understand where your finances put you to afford that house. Here is a quick look at the fees you will incur when purchasing a home in Singapore.
Cost of buying a property in Singapore
Option to Purchase Fee: Option to Purchase (OTP) is the money paid to secure the property. The money creates a legal agreement between the seller and the buyer. In most cases, the fee offers a 14-days exclusivity where the seller does give any offer to other potential buyers.
Option to Exercise fee: This fee is paid when you are sure you want to buy the property. For private property, the fee is between 5-10% of the property price while for HDB it’s $5,000 inclusive of OTP price.
Down payment: Down payments is the minimum amount of the sum to be paid in cash. In most cases down payment of houses are 10 or 20% of the total cost.
Buyers stamp duties: BSD is a tax on documents relating to the acquisition of the home. These documents at as evidence in court shall there be disagreement or problems. BSD are levied at 1% for first $180,000, 2% for the next 180,000 and 3% for the next remaining amount.
Apart from stamp duties and upfront payments, other fees incurred when purchasing a property in Singapore include valuation fees, legal fees, mortgages duty, agent fees and administrative charges.
For private properties the fee is as follows:
Legal fees -$2,000 -$3,000 for a professional lawyer. He/she will help do background checks on the property.
Valuation fee– If you are buying the priority with a loan, then the bank will require property valuation. It cost somewhere between $350 and $500.
Agent commission – if you engage an agent when purchasing a property, they will charge you a small commission as agreed.
Mortgage documents – this is all the paperwork required for you to securing a standard mortgage. For private property, the mortgage document cost is capped at $500.
For HDB flats:
Valuation fees – $140 to $1200.
Insurance – fire insurance is a must for HDB flats. The cost is $1.50 to $7.50 for a 5 year term.
Administrative fee– when you submit your application for HDB flat, you will be charged $10 as an administrative fee. Miscellanies fee $15, agent commission between 0% and 1% and temporary extension $20.
Legal fee– $20 …