The High Price of Picking the Wrong Property in Singapore in 2025
The Steep Price Of Making A Mistake When Buying Property In Singapore Are you yearning for a condo, but the...
Read More
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:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- 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 …
Breaking Through the Stalemate of En Bloc Sales
TLDR The Singapore property market faces challenges with the ongoing en bloc stalemate. Lower success rates, higher development risks, and...
Read More
Buying HDB Resale : How to Minimise COV
TLDR Understanding Cash Over Valuation (COV) is crucial when buying a resale HDB flat in Singapore. COV is the additional...
Read More
Thinking of Selling Your Home in 2024? 5 Vital Realities Every Seller Must Face
TLDR From 2022 to 2024, Singapore's housing market underwent significant changes, with a shift from scarcity to a boom in...
Read More
The Hidden Hurdles of Purchasing a BTO Flat in Singapore: Unveiling 4 Lesser-Known Challenges During the 5-Year MOP
TLDR When contemplating the purchase or sale of a property under the Minimum Occupancy Period (MOP), it's crucial to consider...
Read More
5 Reasons Why It’s A Great Time To Buy Property In Singapore In 2024
Singapore's property market is known for its stability, high demand and strong returns. With a growing population, low unemployment rates,...
Read More
Should You Be Upgrading To A Condo In 2023?
TLDR The 2022/23 property market is experiencing high prices, making it challenging for individuals to decide whether to upgrade their...
Read More
Top 5 Best Secret Running Routes in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also a haven for runners seeking scenic...
Read More
5 Reasons Why Your House Isn’t Selling – and How to Overcome Them!
TLDR When trying to sell your home, ensure it is competitively priced based on its unique features and the current...
Read More
Evaluating Property Investments: Pros and Cons to Keep in Mind
TLDR: Key Takeaways from the Blog Post Singapore's real estate market offers both pros and cons for investors. The advantages...
Read More
Top 5 Coffee Shops in Singapore for Coffee Lovers
Singapore, a bustling city-state known for its diverse culture and vibrant food scene, has also become a haven for coffee...
Read More
How Can Decoupling Help You in Buying a Second Property?
TLDR Decoupling property ownership in Singapore can help you avoid hefty Additional Buyer's Stamp Duty fees when purchasing a second...
Read More
Exploring the Resale Condo Market? Here’s What to Watch Out For!
TLDR The impact of COVID-19 on Singapore's real estate market has been significant, leading to a surge in demand for...
Read More
What to Do Before Exercising Option to Purchase?
TLDR Home buyers are advised to thoroughly research property values using online tools, secure an ideal home loan package early...
Read More
Top 5 : Why Ultra-Rich Foreigners Will Still Buy Property In Singapore
Singapore, a small island nation in Southeast Asia, has been steadily gaining recognition as a hotspot for the ultra-wealthy to...
Read More
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
Singapore’s Real Estate Market: Disproving 5 Common Misconceptions
Singapore's real estate market is a complex and dynamic market that can be difficult to navigate for new investors. With...
Read More
Singapore Decoupling Guide
TLDR Decoupling in Singapore's real estate refers to the process of separating property ownership to avoid Additional Buyer's Stamp Duty...
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
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
