Singapore is a country with a glowing business reputation thanks to its transparent, efficient system. People who are relocating and starting a new life overseas are always welcome in this country, which has led to an increasing number of people from around the world moving to Singapore as a safe, effective place for them to invest their money, particularly when it comes to purchasing property. If you are interested in relocating to Singapore and want to purchase a house or condo in the country, there are a few main things to know before you make the move.
Rules for Purchasing Property as a Foreigner
In general, people from overseas are welcome to buy property in Singapore. However, there are some rules and regulations that you should be aware of before you start the process. There are restrictions on the type of property that you are able to buy if you are not a citizen of the country. In Singapore, any person or entity that is not a citizen, society, company, or limited liability registered in Singapore is considered a ‘foreigner’.
Buying a Condo
When it comes to buying a property in Singapore, a condo is likely to be the best option to go for. Compared to other countries in Southeast Asia, there is no minimum ownership quota for buying a condo in Singapore, and it is available to most visitors, including foreigners who have not lived in Singapore for a long period of time.
Buying a Landed Property
Landed properties are the most difficult option for foreigners in Singapore, since buying this type of property will require you to get pre-approval from the government. To do this, you will need to apply on the Singapore Land Authority website. To be approved, you will need to meet some requirements, including having been a permanent resident in the country for at least five years, and that you contribute significantly through paying tax in the country.
Steps Involved in Buying Property in Singapore
Before you decide to buy a property in Singapore, it’s good to know the steps involved and what you will need to do before you are a homeowner in the country. Some of the main steps involved in the process include:
Determine Your Budget
Buying a property in Singapore is typically much more expensive compared to buying properties in nearby Southeast Asian countries, so it’s important to ensure that you are financially prepared. Take some time to decide on your budget and consider the prices of properties that you are interested in.
Apply for a Home Loan
Just like in many other countries, the sooner you can get a home loan or mortgage, the better. If you are looking to borrow money to finance your property purchase, then the first step is to get an approval in principle as soon as you can. To get this, you will need to go through various checks including credit history and financial records checks to ensure that you meet the criteria to borrow money to buy your property.
It may be a good idea to work with a Singapore mortgage broker to help you find the right option for you. You can also use this Singapore mortgage calculator tool from PropertyGuru to find out more about how much you will expect to pay based on the price of the properties you are interested in. Mortgage brokers are a great place to find information on the process of buying your property and will be able to offer expert advice. You can also use it to find suitable properties for sale that you may be interested in buying.
Get Professional Assistance
There are several professionals that may be worth working with as you go through the process of buying a property in Singapore, including property lawyers and estate agents. A good estate agent can help you with narrowing down your options when it comes to finding the perfect property that not only meets your needs, but you are eligible to purchase as a foreigner. A property lawyer will be able to help you navigate the often-confusing process of buying a property in a country that you are not very familiar with.
Pay a Deposit
When you want to buy a property in Singapore, you will need to pay a deposit known as an Option to Purchase, which is normally one percent of the asking price. The purpose of this is to prevent other offers from being made on the property while you prepare to complete the purchase. You will also need to make a down payment after you have had your final offer accepted by the buyer. Once the final offer is accepted, you’re ready to finish the process and buy the property.
Singapore is a great option if you’re looking to relocate somewhere that has great options for property purchase. But before you start the process of buying property in Singapore, it’s important to familiarize yourself with the process.