Fraud Blocker
Your search results

4 Key Factors to Consider When Purchasing a Private Property for the First Time

Posted by Jayson Ang on August 27, 2023
| 0

TLDR

When considering buying or selling property in Singapore, it’s crucial to understand factors like Additional Buyer’s Stamp Duty, Loan-To-Value rates, Total Debt Servicing Ratio, and Property Tax changes. Recent updates include new laws on living trusts and increased property tax rates. To navigate the market effectively, seek strategic real estate advice and connect with the right buyers. Stay informed about market trends through expert insights and data-driven approaches for a successful real estate journey.

If you’re planning to purchase your first private property or build a new home in a condominium with your partner, there are important factors to consider before entering Singapore’s private market.

As a professional advice, we recommend that you take some time to carefully evaluate these aspects before making any decisions.

1. Additional Buyer’s Stamp Duty

The ABSD rates have been a source of discontent for second-time home buyers, with the rates increasing to 17% after the 2021 property cooling measures.

However, if you are a first-time private homeowner, you will still have to pay ABSD temporarily. The good news is that you can get a refund once you sell your previous property within the 6-month window.

Effective May 9, 2022, new laws have been implemented with regard to residential properties that are transferred into a living trust.

A new ABSD rate of 35% will be applicable on any transfer of residential property into a living trust. This new rule applies even if there is no identifiable beneficial owner at the time of the transfer.

This change has been made to close a loophole, and the ABSD (Trust) will now be paid upfront during the transfer.

2. Loan-To-Value

The government’s property cooling measures have also affected the Loan-to-Value (LTV) rates. For first-time home buyers or those with fully paid existing home loans, the LTV rate has been lowered from 80% to 75%.

This means that borrowers now have less flexibility in obtaining financing from banks to purchase their homes.

Additionally, a decrease in the LTV rate translates to a higher down payment, which can be made through cash or CPF.

3. Total Debt Servicing Ratio

The purpose of TDSR is to safeguard home buyers from taking on a mortgage that they cannot afford. To ensure this, you can only dedicate up to 55% of your monthly income towards repaying your loan every month.

4. Property Tax

If you’re planning to buy a private home for your own use, you can find the property tax rate by using the IRAS e-Service.

The Singapore government recently announced that property tax rates for both owner-occupied and non-owner-occupied residential properties will increase in two phases from 2023 onwards.

For homes with an annual value exceeding $30,000, taxes will be increased from 5-23% in 2023 to 6-32% in 2024. Investment properties will also face higher taxes: from the current 10-20%, to 11-27% in 2023, and 12-36% in 2024.

Despite these measures, experts predict that there will still be strong demand for private property, as demonstrated by the popularity of last year’s launches like Affinity at Serangoon, which constituted a significant portion of private property sales in January 2019.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

  1. Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
  2. Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …


Top 5 Fine Dining Restaurants in Singapore if You are Visiting Us!
Mandarin Top 5

Top 5 Fine Dining Restaurants in Singapore if You are Visiting Us!

Top 5 Fine Dining Restaurants in Singapore if You are Visiting Us! Singapore is known for its diverse and delicious...
Read More
Top 5 Tips : How to Choose the Right Type of Property to Invest in Singapore – Expert Tips and Analysis!
Mandarin Top 5

Top 5 Tips : How to Choose the Right Type of Property to Invest in Singapore – Expert Tips and Analysis!

Investing in property has long been a popular method for growing wealth in Singapore. With million-dollar HDBs being sold and...
Read More
Top 5 Scenic Drives in Singapore
Mandarin Top 5

Top 5 Scenic Drives in Singapore

Singapore, a small yet bustling city-state, is well-known for its impressive skyline, diverse culture, and delicious food. However, not many...
Read More
5 Reasons : Can Your Real Estate Investment Hedge Against Inflation?
Mandarin Top 5

5 Reasons : Can Your Real Estate Investment Hedge Against Inflation?

Inflation is an economic phenomenon that can have a significant impact on an individual's financial well-being. As the cost of...
Read More
6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others
All Buying Tips Opinion

6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others

TLDR When considering property preferences, what may appear as a disadvantage to some buyers could be a unique opportunity for...
Read More
The Changing Faces of Orchard Road
All Buying Tips

The Changing Faces of Orchard Road

Should You Buy, Sell or Wait? If you're reading this, you must be trying to figure out the best course...
Read More
Where to Find the Most Affordable New Launches in 2023 – Starting at $1.31 Million
All Blog Posts Opinion

Where to Find the Most Affordable New Launches in 2023 – Starting at $1.31 Million

TLDR When looking for an affordable new launch condo in Singapore as of January 2023, consider projects like 10 Evelyn,...
Read More
Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?
Mandarin Top 5

Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?

Singapore, a thriving city-state with a robust economy and a strong demand for real estate, has always been an attractive...
Read More
5 Cons of Buying a New Development
Mandarin Top 5

5 Cons of Buying a New Development

Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...
Read More
Top 5 Tea Rooms in Singapore for High Tea
Mandarin Top 5

Top 5 Tea Rooms in Singapore for High Tea

Singapore, a melting pot of diverse cultures and culinary delights, offers an exquisite high tea experience that caters to both...
Read More
3 Steps to Protect Yourself from Real Estate Scams in Singapore
All Blog Posts

3 Steps to Protect Yourself from Real Estate Scams in Singapore

Lately, there has been an increase in scams related to real estate. Scammers are pretending to be real estate agents...
Read More
5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment
Mandarin Top 5

5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment

Choosing the right property agent is crucial to the success of your Singapore property investment. A good agent can provide...
Read More
Top 5 Rooftop Bars in Singapore with Amazing Views
Mandarin Top 5

Top 5 Rooftop Bars in Singapore with Amazing Views

Top 5 Rooftop Bars in Singapore with Amazing Views Singapore, the Lion City, is known for its stunning skyline and...
Read More
Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!
All Blog Posts Buying Tips

Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!

TLDR Understanding property valuations and their impact on mortgage loans is crucial in the Singapore real estate market. By considering...
Read More
Top 5 Seafood Restaurants in Singapore
Mandarin Top 5

Top 5 Seafood Restaurants in Singapore

Singapore, a melting pot of cultures and culinary delights, is well-known for its diverse food scene. With its strategic location...
Read More
Top 5 Best Hidden Boutique Hotels in Singapore
Mandarin Top 5

Top 5 Best Hidden Boutique Hotels in Singapore

Singapore, a vibrant city-state known for its iconic landmarks and diverse culture, offers a plethora of accommodation options for travelers....
Read More
The 5 Most Common Mistakes First-Time Buyers Make (And How to Avoid Them)
Buying Tips Mandarin Top 5

The 5 Most Common Mistakes First-Time Buyers Make (And How to Avoid Them)

The 5 Most Common Mistakes First-Time Buyers Make (And How to Avoid Them) Here are the 5 most common mistakes...
Read More
5 Cons Of Buying A Resale Property
Mandarin Top 5

5 Cons Of Buying A Resale Property

Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...
Read More
5 Most Common Property Investment Scams To Watch Out For In Singapore
Mandarin Top 5

5 Most Common Property Investment Scams To Watch Out For In Singapore

Property investment scams are unfortunately prevalent in Singapore, and unsuspecting investors can fall victim to these scams, leading to significant...
Read More
1 23 24 25

Compare Listings