Discover What Else You Can Focus On Beyond PSF – Here’s How!
The age-old wisdom holds true: when searching for a new home, buyers often prioritize the cost and affordability of the...
Read More
As you embark on your journey to purchase a house in Singapore, here is an essential guide to buying a home in Singapore 2023; comprehensive list of questions you might have – including the most recent property cooling measures announced by the Singapore Government on September 29, 2022.
Singapore may be renowned as one of the costliest cities on the planet, yet with generous government grants and regulation of the housing market, a staggering 90.4% of Singaporeans are able to own a home – making it one of the most accessible cities for homeowners.
What Type Of Properties Can A Singaporean Buy In Singapore?
There are 3 main types of properties in Singapore:
- HDB flats
- Private properties
- Executive Condominiums (ECs)
Singapore Citizens and Permanent Residents have the freedom to purchase not just HDB flats, but any private properties – from apartments and landed bungalows to ECs – but it’s important to take into consideration any restrictions that come with owning an HDB flat.
What Types Of Properties Can Foreigners Buy In Singapore?
Foreigners are allowed to buy private properties such as apartments and condominiums, but must receive government approval to acquire landed properties like bungalows.
Additionally, they may only purchase Executive Condominiums (ECs) that are ten years old or older; unfortunately, they are not able to purchase HDB flats in Singapore.
At What Age Can You Buy A House In Singapore?
If you’re aged 21 or over and looking to buy a resale HDB flat as part of a family unit, the nucleus can include:
- Spouse and children
- Parents and siblings
- Children under your legal custody (if widowed or divorced)
If you are single, unmarried or divorced and wanting to buy a resale HDB flat, the minimum legal age is 35. But if you are widowed or an orphan, you can purchase a property at 21 years of age. To purchase private property, you must be at least 21, although in certain circumstances a trust may be created if the property owner is younger.
Can Singles Buy HDB flats?
Singles can purchase HDB flats, but they must meet certain criteria depending on the scheme they are applying under; moreover, only Singaporean Citizens (not single Permanent Residents) who are at least 35 years old are eligible to buy HDB flats, whether resale or otherwise.
What Is An Essential Occupier for HDB?
HDB defines an essential occupier as “one who forms a family nucleus with the applicant to qualify for a flat”. An essential occupier is an integral part of the application process for BTO and Sale of Balance Flats, and must inhabit the residence for a minimum of 5 or 10 years (depending on the location).
If these requirements are not met, HDB may revoke the application and take back all deposits.
Note that only Singapore Citizens and Permanent Residents can be registered as essential occupants.
How Much Does It Cost To Buy A House In Singapore?
When purchasing a home in Singapore, many factors, such as the estate’s maturity, the proximity to amenities, the property type and age, and the unit’s condition, will determine the cost.
In 2018, the average price of a property in Singapore was US$874,372 (approximately S$1,183,025). Bear in mind, however, that other costs are associated with home ownership, such as legal fees and stamp duties, conservancy fees, home insurance, and more.
How much housing loan can I borrow to buy my home?
Read moreGreat Reasons for Condo Owners to Sell upon Reaching TOP – A Guide to Sub-Sale Transactions
If you’re considering purchasing an HDB flat, you’re eligible to apply for an HDB Concessionary Loan. The Loan-To-Value (LTV) limit for this type of loan is up to 80% of the property value or selling price, whichever is lower; a measure recently put in place by the Singapore Government to ensure that those taking out a home loan do so responsibly.
The downpayment of 20% can be paid using cash, your CPF savings, or through a private bank loan. If you are buying an HDB flat, the Loan-To-Value (LTV) limit is 75%, while the remaining 25% must be composed of a minimum of 5% cash and the rest with cash and/or CPF savings.
What is HDB Concessionary Loan?
If you’re looking to buy a flat and want to benefit from HDB’s concessionary interest rate on housing loans, you’ll need to meet the eligibility criteria first. Furthermore, the amount of loan you can take out depends on factors such as the flat’s price and remaining lease, as well as your income, age, and existing financial commitments.
Can I use all my CPF savings to buy a HDB flat?
The amount of your CPF Ordinary Account (OA) savings you can access is restricted by the CPF housing restrictions – your Valuation Limit (VL) and Withdrawal Limit (WL).
If you want to purchase your HDB flat, you can use your OA savings to finance up to the Valuation Limit (VL), which is the lower of the purchase price or the valuation price. If you need to withdraw more than your OA savings, you should make sure you’ve met the Basic Retirement Sum requirement – this amount changes depending on when you turn 55.
The WL is 120% of the VL, the absolute maximum amount of OA savings you can use to finance your flat. Anything higher must be funded through cash. To assist in calculating when your CPF housing withdrawal limit is reached, you can utilize the CPF Housing Withdrawal Limits Calculator.
Can Private Property Owners Buy HDB flats?
For individuals who own private properties, whether it be at home or abroad, it is mandatory to dispose of them within fifteen months of purchasing a resale HDB flat. However, this rule does not apply to those who are senior citizens over the age of 55 and have downgraded to a 4-room flat or smaller.
Before applying for a BTO flat, private property owners should make sure they have disposed of their current private properties at least 30 months prior, thus allowing for a lengthy time period between residences – be sure to plan your finances and living arrangements accordingly.
Can I Own More Than One Property In Singapore?
As a Singapore Citizen or Permanent Resident, you have the freedom to own an unlimited amount of private properties.
If you dream of owning both a HDB flat and private property (local or overseas), you must first purchase a HDB flat and occupy it for a minimum of 5 or 10 years (depending on the prime location).
Do bear in mind that you cannot own more than one HDB flat; if you choose to invest in a second, you must dispose of the first within 6 months.
Final Thoughts
- Carry out an in-depth financial analysis to guarantee you are making wise decisions for the near future and can confidently stand behind your decisions.
- Also take your timeline and family wishes into account, plan ahead and provide your family with a sense of security so that you can proceed with peace of mind.
If you’re curious about the prospect of relocating to private property and would like expert advice, I’m just a message away!
You May Also Like …
5 Hidden Expenses to Watch Out for When Buying a Home in Singapore
5 Hidden Expenses to Watch Out for When Buying a Home in Singapore Buying a property in Singapore can be...
Read More
Discover 7 Reasons to Sell and Right-Size Your Property
After being settled in their homes for a while, many homeowners become content with their surroundings, dismissing the idea of...
Read More
Planning for Retirement: Considerations for Downsizing Your Property
Maybe you're ready to take a step towards retirement and achieve your financial goals ahead of schedule. Lots of people...
Read More
5 Must-Know Questions Before Investing in Real Estate
Investing in property is a more secure, long-term choice compared to more speculative options like stocks, and remains a popular...
Read More
SP Utilities Guide – Quick Guide To Setting Up Utilities In Singapore For Your New Home
If you're an owner or tenant moving into a new home in Singapore, setting up utilities doesn't have to be...
Read More
The 5 Hottest Neighborhoods in Singapore for Real Estate Investment
Hey everyone! Today I want to share with you the 5 hottest neighborhoods in Singapore for real estate investment. These...
Read More
5 Key Insights to Take Away from the Latest 2022 Cooling Measures
Since the 30th of September 2022, the cooling measures have been in effect for over a month, and as a...
Read More
Sell High Buy High : Will This Still Make You a Profit?
Often times when sellers are advised of the ideal time to sell their property and acquire another one, most of...
Read More
When Is the Right Time to Sell Your House?
Deciding when to put your house on the market can be a tricky decision, particularly in today's highly competitive real...
Read More
What’s Next for HDB Owners?
Buying a home always seems daunting especially such it is a big-ticket item and the prices for private homes can easily...
Read More
2024 Residential Property Market Outlook
Market Outlook Much of the uncertainties that raised caution in the market in 2023 are expected to persist into 2024,...
Read More
Resale Viewing Do’s and Don’ts: Expert Advice from a Singapore Real Estate Agent
Are you in the process of viewing resale properties in Singapore and unsure of what to do and what to...
Read More
Why Can’t We Have More Housing Options For Singles?
Logistics expert, Lee Siang, aged 39, decided to leave his parents' two-room apartment eight years prior when his sibling's family...
Read More
Top 5 Places to Watch the Sunset in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to some of the most...
Read More
Unlock the Potential of Your Home: 5 Reasons to Start Selling Now
Though it may seem counter-intuitive to sell your home after having invested so much time and money into making it...
Read More
Evaluating Property Investments: Pros and Cons to Keep in Mind
Singapore is the fifth most expensive country to purchase property, yet it boasts one of the highest rates of homeownership....
Read More
Are You Considering Paying Off Your Mortgage Loan Ahead of Time? Is It the Right Financial Move?
For many Singaporeans, owning a property is a dream come true - a milestone in the journey of wealth-building, creating...
Read More
Singapore’s Best Kept Real Estate Secrets: 5 Insider Tips for Savvy Investors
Singapore's Best Kept Real Estate Secrets: 5 Insider Tips for Savvy Investors Here are 5 insider tips for those looking...
Read More
Finding Your Dream Home In The Near Future. Exciting Upcoming Property Launches In The First Half Of 2024
As we approach the tail end of the year, it's natural to start reflecting on what's been and eagerly anticipate...
Read More
