BUY/SELL PRIVATE PROPERTY | SGPD (SG Property Detective)

Step-by-Step Guide: What You Need To Do When Selling Your Property

Shelwyn @ SGPD — Fri, 25 Aug 2023 03:22:03 +0000

Selling a property can be an exciting yet complex process.

Whether you’re a first-time seller or have prior experience, taking the right initial steps can set the tone for a successful and smooth transaction.

In this article, I will guide you through the important steps to take when selling your property.

1. Assess Your Reasons for Selling

Before diving into the process, it’s crucial to determine why you’re selling.

Are you upgrading to a bigger house to accommodate a bigger family? Focus on Livability.

Are you downsizing in preparation for retirement? Focus on retirement goals.

Or are you looking for great investment opportunity? Focus on Investability.

Understanding your motivations can help shape your approach to the sale.

2. Research the Market

Conduct thorough research on the current real estate market in your area.

This includes understanding recent property sales, price trends, and demand for properties similar to yours.

This information will help you set a competitive asking price.

Set the Right Price

Pricing your property correctly is essential.

Consider getting a professional valuation to determine a reasonable and competitive asking price.

By understanding your situation, a professional agent can determine the urgency of sales and provide the necessary advice and strategies on how to fetch the best price possible.

3. Prepare Your Property

Your property’s appearance matters.

One of the biggest mistake is not presenting your property at its best. Customers are less willing to pay for a “dirty and old” looking house.

On the other hand, customers will often place a premium on houses that appear well-maintained, even though they might be doing a full renovation of their own. It’s all about the first impression.

Clean, declutter, and make necessary repairs or improvements to enhance its appeal.

First impressions count, so consider investing a small amount of money in staging to showcase your property’s potential to buyers.

4. Gather Documentation

Collect all relevant documents such as property deeds, property tax documents, survey documents, and any warranties related to appliances or repairs.

These documents will be required during the sale.

5. List Your Property

List your property on reputable online real estate platforms and work with your agent to market it effectively.

Ensure accurate and complete information in your listings.

6. Arrange Showings and Open Houses

Coordinate property showings and open houses to allow potential buyers to view your property.

Create a welcoming and well-maintained environment for visitors.

7. Respond and Accept Offer

Once you receive offers from potential buyers, carefully review and consider each offer.

Negotiations may follow, and it’s essential to respond promptly and professionally.

Once you’re satisfied with an offer, accept it.

8. Complete the Sales Contract

If you are self-representing, find a legal professional and work with them to draft and finalise the sales contract.

Ensure all terms, conditions, and obligations are clearly stated.

9. Close the Sale

As the closing date approaches, gather necessary paperwork, arrange for inspections, and address any contingencies outlined in the contract.

On the closing day, you’ll sign the necessary paperwork and ownership transfer procedures.

Congratulations, your property is officially sold!

Do You Need a Real Estate Agent?

Hiring a real estate agent to sell your property can offer several benefits, especially given the complexities of completing a property transaction.

Here are some areas that can be challenging to handle on your own:

Market Expertise in Pricing

Real estate agents have a deep understanding of the Singapore property market.

They can provide insights into current market trends, property values, and the competitive landscape.

This knowledge is invaluable when pricing your property competitively.

Marketing and Exposure

Real estate agents are skilled in marketing properties effectively.

They can create professional listings, use various marketing channels, and leverage online agent-only platforms (eg. Propertyguru) to showcase your property’s best features.

High-quality photos, detailed descriptions, and virtual tours are required to make your property stand out in online listings.

All these will lead to more inquiries and potential offers.

Network and Connections

Experienced agents have an extensive network of potential buyers, other real estate professionals, and industry contacts.

This network can help expose your property to a wider audience, increasing the chances of a quicker and more successful sale.

Time and Convenience

Selling a property involves numerous tasks, from coordinating viewings to handling paperwork.

With an agent, you can save time and effort as they take care of these details, allowing you to focus on other aspects of your life.

Legal and Documentation Expertise

Real estate transactions involve legal contracts and documentation.

Real estate agents are familiar with the legal requirements and paperwork involved in Singapore property transactions, reducing the risk of errors or oversights that can delay, or sometimes even resulting in a failed transaction.

Property Presentation and Staging

A good property agent can provide advice on how to prepare your property for viewings.

They know what potential buyers are looking for and can suggest staging techniques that enhance your property’s appeal.

Access to Data

Real estate agents have access to data and resources that may not be readily available to the general public.

This information can help you make more informed decisions about your sale.

Solving Unexpected Problems

If unexpected challenges arise during the selling process, such as issues with the property’s condition or negotiations, a real estate agent can provide guidance and solutions based on their experience.

Too often, when potential buyers learn that the seller is self-representing, they are likely to:

Make unreasonably low offers
Misrepresent their financial situation and intention
Make excessive demands and nitpicking
Back out last minute
Renegotiate agreements
Appear aggressive and confrontational

Conclusion

Selling a property involves a series of well-coordinated steps.

By starting with a clear plan and understanding each phase, you can navigate the selling process confidently and achieve your goals.

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The post Step-by-Step Guide: What You Need To Do When Selling Your Property first appeared on SGPD (SG Property Detective).

CCR vs RCR vs OCR: Which Area has Best Price Growth Potential for Private Property in Singapore?

Shelwyn @ SGPD — Wed, 23 Aug 2023 09:11:18 +0000

If you have been shopping for a private residential property in Singapore, you might have come across these abbreviations – CCR, RCR and OCR – and while you might have a rough idea what they refer to, this article will explain what they mean for you as a property owner. I will also break down the price growth of each region and look at its upcoming price growth potential.

TLDR

For the past 10 years based on resale condos’ psf, CCR has the lowest price growth at 21%, RCR at 35% and OCR at 39%, showing the strongest price growth.
OCR prices will continue to grow but at a slower rate.
RCR and OCR are expected to continue their strong price growth in the next 10 to 15 years.

Core Central Region (CCR)

The Core Central Region (CCR) refers to the central part of Singapore that encompasses prime and highly sought-after areas. This region includes the downtown core, upscale residential neighbourhoods, and commercial districts.

Some of the most prestigious and iconic properties are located in the CCR. Properties in this region tend to have higher price points due to their prime location, proximity to business hubs, entertainment options, and cultural amenities.

What districts are in the CCR?

Districts 9, 10, and 11. Also, it encompasses the Downtown Core, which includes certain sections of Bugis situated south of Ophir Road, and the iconic Sentosa island.

RCR = Rest of Central Region

The Rest of Central Region (RCR) refers to the areas surrounding the CCR. These neighbourhoods offer a mix of urban convenience and suburban tranquility. The RCR includes both mature residential estates and up-and-coming neighbourhoods.

Properties in the RCR generally offer a more diverse range of price points compared to the CCR but depending on the popularity of the district itself, there are prices in RCR that come very close to CCR as well.

What districts are in the RCR?

Districts 3, 8, and 12, as well as parts of Districts 1, 2, 4, 5, 7, 13, 14, 15 and 20.

OCR = Outside Central Region

The Outside Central Region (OCR) covers the suburban areas and outskirts of Singapore. This region offers a more spacious and family-friendly living environment.

Properties in the OCR tend to be more affordable compared to the CCR and RCR.

What districts are in the OCR?

Districts 16, 17, 18, 19, 21-28 and parts of Districts, 5, 14, 15 and 20.

What is the price growth for a property in CCR, RCR or OCR?

To analyze price growth, I look at the 10-year historical data from 2012-2022 using average psf for resale condominiums, across all three regions

CCR - Prestigious address but at a slower growth rate

For resale condos in the CCR, there is 21% growth of average psf in the past 10 years. It also looks like price growth for the CCR has reached a plateau and if it continues to grow, it will be at a slower rate in the next 5 – 10 years, compared to the other regions.

Buyers need to understand that owning a property in the CCR is not about looking for the best price growth. Instead the prestige of owning properties in a premium region, and having a CCR property as a status symbol are reasons that fuels the purchase.

RCR - Catching up to CCR with an accelerated growth rate

There is a 35% of average psf growth for resale condos in the RCR for the last 10 years. In terms of absolute psf, RCR is still catching up to CCR but the price gap between CCR and RCR is narrowing.

This narrowing price gap continues to trend in 2023 and I expect RCR to continue tightening its price gap with CCR’s for the next 5 – 10 years, due to the continued expansion of our MRT network and improved amenities built by the government.

OCR - Up-and-coming with the strongest growth rate

For OCR, resale condos see an average psf growth of 39% in the past 10 years. Properties in OCR sees their advantages in relative affordability and spaciousness. I expect the growth of OCR to continue to be the strongest consistently for the next 10 -15 years.

Demand for OCR properties will also continue to rise because similar to RCR, the MRT connectivity is widening across the island and as we develop more amenities in the OCR, the appeal for OCR properties will only continue to rise.

Conclusion

There are multiple factors to consider on which region to buy but if you are looking for price growth, go for either RCR or OCR.

To further decide on whether it is RCR or OCR for you, it is then down to price point and lifestyle factors.

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How will new Prime, Plus and Standard Flats Impact Both Buyers and Sellers

Shelwyn @ SGPD — Mon, 21 Aug 2023 04:00:41 +0000

TLDR

Buyers of new Prime and Plus BTO Flats will see lower investability and rentability, and will also be limited to a smaller buyers’ pool due to an imposed income ceiling for resale buyers.

Existing HDB flat owners located at “Prime” and “Plus” locations may have their resale value increased further as supply for flats, especially newer flats without the actual Prime and Plus restrictions will continue to decrease.

Resale HDB flat buyers who are keen in buying in “Prime” and “Plus” locations without the new restrictions may have to buy earlier than later as prices will continue to increase to meet the decreasing supply.

New Categorisation of HDB BTOs - Prime, Plus and Standard

On 20 Aug 2023, PM Lee has announced that the existing categorisation of Mature and Non-Mature estates for new BTOs will cease to exist by second half of 2024. They will be replaced by new categories known as Prime, Plus and Standard. These will not be tagged to existing or flats booked before 2H 2024.

Think of it as tiering – Prime will be the best-located HDB flats and it tiers down accordingly to Plus and Standard.

But instead of just making Prime the most expensive, Prime will have the most resale and rental restrictions and these restrictions scale down for Plus and Standard, respectively.

Below is a table summary of the new categories from MND.

What this means for Buyers of the new Prime and Plus BTO Flats

Prime BTO Flats

With the tightest restrictions, buyers must understand that Prime units come with lower investability – you can only sell 10 years later, you have to return a certain % resale money to the government (if you took subsidies) and resale buyers’ pool will be limited to those who meet the prevailing BTO income ceiling (currently set at $14,000 for families and $7,000 for singles).

If you own a private property, you will have to sell your private property and wait for 30 months before you can buy a Prime resale flat.

These flats will come with minimal rentability as well – you cannot rent the entire flat at any juncture – so you can only rent bedrooms.

These factors will limit you if you are looking to upgrade your property in the future.

Plus BTO Flats

Plus BTO flats are sort of a middle-ground, you don’t get the tightest restrictions but are nonetheless limited with the 10-year MOP and you also have to return a certain % resale money to the government but lower % than Prime (if you took subsidies).

Investabiity is only slightly better than Prime – because all restrictions are similar other than lower subsidy clawback and a higher income ceiling ($14,000) for singles for resale transactions.

Plus flat owners will not be able to rent out the entire flat at any time and Plus flats resale buyers also have a wait-out period of 30 months.

Rentability is definitely better than Prime since you will be able to rent out the entire flat after your 10-year MOP but make no mistake, you still have to wait for 10 years.

Standard flats will have similar restrictions with the existing HDB BTO rules (eg. 5 years MOP, no income ceiling for resale buyers).

What this means for existing Flat Owners located at "Prime" or "Plus" areas

If you currently own a flat that could fall into the category of a Prime or Plus location, especially if your flat is still undergoing the 5-year MOP period, your future resale value could increase further after this new categorisation.

The reasons are simple – you enjoy a wider buyer pool who doesn’t have to meet the prevailing BTO income ceiling, and is not impacted by a longer MOP or rental restrictions while the location is considered a choice location.

It is all about demand and supply. Let’s say I’m a buyer looking to buy a well-located resale flat, I will gravitate towards buying a flat that doesn’t come tagged with multiple restrictions because they provide more options for me on either investability or/and rentability.

Refer to the below map from MND to get an idea where your existing flat may be located. We will likely have a better idea as we monitor HDB BTO launches from 2H 2024 onwards.

What this means for Resale Flat Buyers who are looking to buy in "Prime" or "Plus " Locations

The new Prime and Plus BTO Flats will start to populate the HDB resale market in about 14 years’ time. That may seem like a long time but the fact is that, new flats in these choice locations with only 5 years MOP will cease to exist in less than 6-7 years’ time.

As mentioned above, the resale value of well-located newer flats without these new restrictions will start to go up as demand for them increases.

Resale flat buyers who are keen to buy newer flats in “Prime” or “Plus” locations may have to buy sooner than later as supply for these flats will only start to dwindle and prices will increase to meet the demand.

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Joint Tenancy & Tenancy in Common: What You need to know as a Co-Owner

Shelwyn @ SGPD — Sat, 19 Aug 2023 08:48:07 +0000

Property ownership in Singapore offers multiple avenues for co-ownership, and two common options are Joint Tenancy and Tenancy in Common. In this article, we’ll dive into the implications of Joint Tenancy and Tenancy in Common, helping you navigate these options effectively.

Joint Tenancy

Joint Tenancy is a widely adopted form of co-ownership in Singapore. Its standout feature is the right of survivorship, which means that when one co-owner passes away, their share automatically transfers to the surviving co-owners. This setup is common among spouses and family members.

Key Attributes

Right of Survivorship: Upon the demise of a co-owner, their share seamlessly passes to the surviving co-owners, ensuring the property remains with the original owners.
Equal Ownership: All co-owners possess equal shares in the property, regardless of their financial contributions or investments.
Undivided Interest: Each co-owner has full access to the entire property, not just a specific portion.
Simplicity in Transfer: When one co-owner passes away, the property’s ownership changes without the need for a will or probate process.

Tenancy in Common

Tenancy in Common is another common co-ownership structure. In this arrangement, co-owners hold distinct and individual shares of the property. Unlike Joint Tenancy, Tenancy in Common does not entail an automatic right of survivorship. Each co-owner can sell, transfer, or bequeath their share independently.

Key Attributes

1. Distinct Shares: Co-owners can possess varying ownership percentages based on their contributions, investments, or preferences.
2. No Right of Survivorship: In the event of a co-owner’s demise, their share is distributed according to their will or Singaporean laws, not automatically transferred to other co-owners.
3. Transfer Flexibility: Owners can sell or transfer their share to other parties without requiring consent from fellow co-owners.
4. Wills for Clarity: To dictate the fate of their share upon their passing, co-owners must draft a will outlining their preferences.

So, Should I choose Joint Tenancy or Tenancy in Common?

The decision between Joint Tenancy and Tenancy in Common hinges on factors such as familial relationships, investment goals, and long-term plans. Joint Tenancy is suitable for those seeking a streamlined ownership transfer to surviving co-owners, often favoured within families.

On the other hand, Tenancy in Common caters to individuals or groups where flexibility in transferring or selling ownership is essential.

There is no hard or fast rule because it really depends on your specific situation. For instance, if you are looking for a different percentage ownership on your property with your spouse, then Tenancy in Common is the way to go.

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The post Joint Tenancy & Tenancy in Common: What You need to know as a Co-Owner first appeared on SGPD (SG Property Detective).

Understanding Singapore’s Option to Purchase (OTP): Buying New Launch Property

Shelwyn @ SGPD — Fri, 18 Aug 2023 06:37:31 +0000

Singapore’s bustling real estate market is ever-active, there are new launches every month with excited buyers flooding the showflats.

Amid the plethora of terms and procedures, one crucial element demands your attention: the Option to Purchase (OTP).

Within the confines of this piece, I will scrutinise the OTP concerning new launch residential properties. The focus will be on unraveling the impact and significance of this aspect from a buyer’s perspective.

Understanding Option to Purchase (OTP)

The Option to Purchase (OTP) is like a special agreement between someone selling a property and someone who might want to buy it.

For a new launch project where the property is still under construction, the OTP will be issued by the developer.

The developer issues the OTP to the buyer once the booking fee is paid (typically amounting to 5% of the total purchase price). At this juncture, the buyer is committed to acquire the unit.

Exercising the OTP

Following the issuance of the OTP, the developer will provide the Sale and Purchase (S&P) Agreement to the buyer, who subsequently has a period of three weeks to endorse it, thus exercising the OTP.

For buyers who need more time to finalise requisite arrangements – such as the sale of their existing property – before opting to exercise the OTP, they can opt to apply to the Controller of Housing for an extension of the OTP’s validity period.

Such an extension, if granted, can extend up to 12 weeks from the initial OTP date.

What happens if the buyer decides not to proceed?

Buyers who do not proceed to exercise the OTP within the stipulated timeframe will have 25% of their initial booking fee forfeited.

How much is required to exercise the OTP?

Within 14 days of signing the S&P Agreement, the buyer is obligated to settle the Buyer’s Stamp Duty (BSD), along with any Additional Buyer’s Stamp Duty (ABSD), if applicable.

The remaining 20% downpayment, which is payable by CPF OA, cash or a mixture of both, is stipulated to be settled within an eight-week timeframe subsequent to the formalisation of the S&P Agreement.

Do I need professional assistance when dealing with OTP?

Once in possession of the OTP, you can proceed to speak with a mortgage banker to formally initiate the home loan application.

Subsequently, the bank will furnish you with a Letter of Offer, encompassing essential loan details such as loan amount, interest rate, repayment duration, lock-in period, re-pricing opportunities, and redemption conditions.

Furthermore, you will need to engage a lawyer or if you don’t have one, your property agent can recommend one experienced in new launches, to oversee the legalities associated with your property acquisition.

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Understanding Singapore’s Option to Purchase (OTP): Buying Resale Properties

Shelwyn @ SGPD — Thu, 17 Aug 2023 12:54:33 +0000

Singapore’s busy real estate market is constantly buzzing, you will constantly see news of record transactions across various types of properties in Singapore.

Among all the different terms and processes, there’s one important thing to know: the Option to Purchase (OTP).

In this article, let’s take a closer look at the Option to Purchase for resale residential properties. I’ll talk about why it matters and how it protects both the seller and buyer.

Understanding Option to Purchase (OTP)

The Option to Purchase (OTP) is like a special agreement between someone selling a property and someone who might want to buy it.

It gives the buyer an exclusive chance to buy the property within a certain time, usually about two weeks.

During this time, the seller can’t sell the property to anyone else, so this protects the buyer giving the buyer an exclusive period to consider whether to exercise the OTP.

However the buyer has to pay an option fee, which in turn protects the seller for the time given to the buyer to consider.

OTP is used for both HDB and private properties.

HDB OTP vs. Private Property OTP

Area	HDB OTP	Private Property OTP
Duration	Usually valid for 21 days.	Usually valid for 14 days (negotiable)
Form / Agreement	In order to utilize the HDB’s OTP form, the seller is required to submit their Intent to Sell on the HDB Resale Portal a minimum of 7 days prior to issuing an OTP to the prospective buyer.	The seller will provide the OTP to the buyer once an accord on the fundamental terms and purchase price has been reached by both parties.
Option Fee	Paid by buyer, option fee not more than $1,000.	Paid by the buyer to the seller upon granting the OTP. Usually 1% of the agreed purchase price.

Key Aspects of OTP:

Exclusive Opportunity: The OTP provides the buyer with a chance to secure the property without worrying about other buyers swooping in during the option period.
Option Fee: Buyer pays a non-refundable option fee to the seller for issuing the OTP.
Completion of Sale: If the buyer decides to proceed, the OTP is exercised, and both parties move forward to complete the sale within the stipulated timeframe.

Benefits of Using OTP:

Time to Decide: The OTP period gives buyers the necessary time to finalise their decision without the pressure of immediate commitment.
Financial Planning: Buyers can use the OTP period to arrange financing, secure a housing loan, and plan their budget.
Negotiation: Buyers can negotiate terms and conditions during the OTP period, providing flexibility for both parties to come to a mutually agreeable arrangement.

What happens if the buyer decides not to proceed?

The option fee is forfeited to the seller. Seller can then offer the property to other potential buyers.

How much is required to exercise the OTP?

Private Property

For private properties, buyer who choose to exercise the OTP will need to pay the remaining 4%, along with the 1% option fee that has been paid, to make up the typical 5% deposit.

Stamp duty is payable within 14 days of exercising the OTP.

HDB Flat

For HDB flats, total deposit cannot exceed $5,000 hence buyers will have to top up $4,000 on top of the $1,000 option fee that has been paid.

Buyers taking a home loan from a bank must have a Letter of Offer before they can exercise the OTP.

Do I need professional assistance when dealing with OTP?

It’s highly recommended to seek professional advice when dealing with OTP and property transactions.

Engaging a real estate agent and a lawyer can help ensure a smooth and legally compliant process.

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The post Understanding Singapore’s Option to Purchase (OTP): Buying Resale Properties first appeared on SGPD (SG Property Detective).

Understanding the Differences Between TOP and CSC

Shelwyn @ SGPD — Thu, 17 Aug 2023 11:51:08 +0000

In the world of Singapore’s real estate, people who want to buy homes or invest in property come across many different words and abbreviations on property ownership.

Two important abbreviations that often confuses people are TOP and CSC.

Both TOP and CSC and are about building and the completion properties but results in different outcomes.

In this article, I will help you understand the differences between Singapore’s TOP (Temporary Occupation Period) and CSC (Certificate of Statutory Completion).

Understanding TOP: Temporary Occupation Period

Temporary Occupation Period (TOP) is a big moment in the life of a building project.

It means the building is now safe for people to live in and the separate homes inside it are all set for people to move in.

At this time, developers give the keys to the buyers. This is when the building changes from being under construction to being ready for people to live in.

Key Aspects of TOP:

Completion and Safety: TOP denotes that the development, including essential facilities and units, has been completed according to approved plans and safety regulations.
Legal Handover: With the issuance of TOP, buyers receive legal ownership of their units, granting them the right to move in and start making their property a home.
Common Areas: Shared amenities and communal spaces are usually accessible upon TOP, enabling residents to enjoy the facilities and foster a sense of community, although it is not unusual to see some areas still under construction.

Understanding CSC: Certificate of Statutory Completion

The Certificate of Statutory Completion (CSC) signifies the completion of an entire development, including individual units and common areas, in compliance with approved plans and regulatory standards.

This certificate is issued by the relevant government authority, indicating that the property is fit for occupation and meets essential safety and structural requirements.

Key Aspects of CSC:

Completion Standard: CSC ensures that the entire development, including all units and shared facilities, is finished to an acceptable standard, as assessed by thorough inspections.
Handover to Owners: Upon receiving the CSC, developers hand over official ownership of individual units to buyers. This marks the transition from developer ownership to individual property ownership.

Differentiating TOP vs CSC

Purpose: TOP primarily focuses on the completion of individual units and the readiness for occupancy while some shared facilities may still be under construction, while CSC extends to the entire development, emphasizing full compliance with regulatory standards.
Ownership Transition: TOP signals the point at which individual unit owners take possession, while CSC represents the final certification of the entire project’s completion.
Development Scope: TOP pertains to all types of properties, while CSC spans across the spectrum of developments, including public and private projects.

TOP is also optional while CSC is mandatory for developers to obtain.

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SSD in Singapore: The Lowdown on Seller’s Stamp Duty

Shelwyn @ SGPD — Thu, 17 Aug 2023 11:47:15 +0000

What is Seller's Stamp Duty (SSD)?

Buyer’s Stamp Duty (BSD) is a tax levied to sellers for selling residential properties in Singapore within 3 years, from the date of acquiring the property.

BSD is computed based on the valuation or selling price, whichever is higher.

How do I know if I will need to pay SSD?

As long as you are selling a residential property in Singapore within 3 years of acquiring the property, you are liable to pay SSD regardless of your citizenship status in Singapore.

How much SSD do I have to pay?

Up to 1 year	12%
More than 1 year and up to 2 years	8%
More than 2 years and up to 3 years	4%
More than 3 years	No SSD payable

How do I tell exactly when I have fulfilled 3 years after acquiring the property and will not incur SSD?

It will be either 3 years after the:

Date of Sale and Purchase (S&P) Agreement or
Option to Purchase (OTP) Exercise Date (if no S&P) or
Date of Transfer

One thing to note, do not refer to the Option To Purchase (OTP) exercise date for new launches, as it is not the right date for calculation.

Will there be any scenario where I don't need to incur SSD?

Ensure that you have crossed the 3 years holding period or if you need to be sure, consult a professional to look through your documentation.

If you are under HDB regulations to dispose of a HDB flat due to marriage or inheritance, you will also not incur SSD.

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The post SSD in Singapore: The Lowdown on Seller’s Stamp Duty first appeared on SGPD (SG Property Detective).

Breaking Down the Costs: What You Need to Know About Buyer’s Stamp Duty (BSD) in Singapore

Shelwyn @ SGPD — Thu, 17 Aug 2023 11:46:30 +0000

What is Buyer's Stamp Duty (BSD)?

Buyer’s Stamp Duty (BSD) is a tax levied to buyers or tenants for buying or renting any type of properties in Singapore. BSD is computed based on the valuation or purchased / leased price, whichever is higher.

You will also incur BSD when you take up a home loan, by mortgaging your property with a bank.

Note that you will be paying BSD $X for purchasing a property PLUS BSD $Y for taking up a home loan.

BSD is also payable on top of Additional Buyer’s Stamp Duty (ABSD) where applicable.

How do I know if I will need to pay BSD?

As long as you are buying, renting or gifted a property in Singapore, you are liable to pay BSD regardless of your citizenship status in Singapore.

BSD applies to all types of properties in Singapore.

How much BSD do I have to pay?

For easy computation, refer to the official IRAS stamp duty calculator.

Here’s the table of BSD rates for purchasing property:

On or after 15 Feb 2023
Purchase price or market value of the property	BSD rates for residential properties	BSD rates for non-residential properties
First $180,000	1%	1%
Next $180,000	2%	2%
Next $640,000	3%	3%
Next $500,000	4%	4%
Next $1,500,000	5%	5%
Remaining amount	6%

At which point during property purchase do I pay BSD?

You will need to pay BSD either upon:

Date of Exercise of Option to Purchase (OTP) or Contract; or
Date of Sale & Purchase Agreement (where no OTP is granted); or
Date of transfer where none of the above is applicable

Will there be any scenario where I don't need to incur BSD?

You do not have to pay BSD for a property that you inherited in accordance to the Intestacy Law, Muslim Inheritance Law or a Will.

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Understanding ABSD: What Foreigners Need to Know When Buying Residential Properties in Singapore

Shelwyn @ SGPD — Thu, 17 Aug 2023 04:13:18 +0000

What does ABSD mean for Foreigners?

ABSD refers to Additional Buyer’s Stamp Duty, a tax levied to foreigners intending to buy any residential property in Singapore.

ABSD is computed based on the valuation or purchased price, whichever is higher, and is payable on top of BSD (Buyer’s Stamp Duty).

Does ABSD affect me as a Foreigner intending to buy a residential property?

Yes, as long as you are buying a residential property in Singapore, you will have to incur ABSD.

I'm a foreigner, how much ABSD do I have to pay for my residential properties?

You will have to pay 60% ABSD for any residential property purchase.

At which point during property purchase do I pay ABSD?

Within 14 days upon signing your sale and purchase agreement or within 30 days if your sale and purchase agreement was signed overseas.

How can I avoid paying ABSD as a Foreigner?

The only legal way to avoid paying ABSD for your first residential property is if you are married to a Singaporean.

You may also qualify for an ABSD refund as a married couple if the property you paid ABSD for is sold within six months as you purchase the second residential property,

You do not have to pay ABSD for a property that you inherited in accordance to the Intestacy Law, Muslim Inheritance Law or a Will.

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The post Understanding ABSD: What Foreigners Need to Know When Buying Residential Properties in Singapore first appeared on SGPD (SG Property Detective).