Expats move to the Lion City for a myriad of reasons, from those who are looking to set up a business to those who simply want a change in lifestyle. As an expat, however, buying a property in Singapore can be a tiring and somewhat confusing process. The laws concerning the procurement of land by foreigners can be tricky to navigate around. This guide will help you buy good commercial or residential property while simultaneously fulfil all the legal obligations to avoid getting into trouble with the local government.
Read Up on Legal Framework
No amount of investment capital or fail-proof business idea will matter if you are not eligible to procure the property you need. Certain restrictions are imposed for expatriates looking to purchase land in the country. The Residential Property Act of 1973 oversees the purchase and ownership of land and property by expatriates. The bill categorizes vacant residential land, landed property, and property in housing developments that are not legally categorized as approved condos as restricted for purchase and ownership by buyers who are not a citizen of the country.
Plan Your Financing
To finance your purchase of a property, regardless if it’s HDB flats for sale or a bungalow, you’ll have to plan your mortgages and capital investment structure beforehand. You can borrow as much as 80 percent of the property’s price from your chosen Singapore-based bank. It’s savvy to learn the native etiquette when approaching these local banks to give your loan request a higher chance of getting approved. If you currently own other properties in the country, the available amount percentage is lowered down to 60 percent. Many banks, especially large ones, provide home equity loans for expats who are set on purchasing property in the country. The terms of your mortgage plan should be consulted with a local financial adviser who is knowledgeable of the local market traits and existing bank standards.
Choose a Property
This is probably the most exciting part about buying property in Singapore, yet it could also get frustrating if you fail to plan ahead. Identify the key characteristics that you want your prospects to have. If you’re going for service apartments in Singapore, do you want the building to have basic or luxury features, such as an indoor swimming pool, gym, and room service? As for location, if you are planning to rent out the property to tenants and just collect the monthly income, make sure you look for a location that boast low crime rates and have a promising economic future, meaning a possible influx of investments later on that could spur more business opportunities and employment openings within the neighbourhood.
The final step of any property search and acquisition is paperwork. Take your time in finding a good real estate agent based in the country. Your Singapore-based agent can help you finalize the papers and speak on your behalf with sellers and the regulating boards. Working with a trustworthy and competent real estate agent will guarantee quality prospects and a smooth property acquisition.