Singapore Expats

Hi,
My partner and I have been living in Singpore for a year now and my partner has an EP and I have a long term visitors pass. We are now thinking about buying a property instead of renting and I have a few questions that I hope you can answer.

1. Is there an advantage to being a PR when buying a property ?
2. Is it possible to get a mortgage where you only pay 10% deposit ?
3. What additional costs do you have to bear in mind when buying a property ?
4. Can anyone recommend any good financial advisers ?

I am amazed at the high cost of properties in Singapore and will struggle to raise a 20% deposit. Is there a way that people do this ie get loans for the deposit ? Silly question I know but its just so expensive !

Any help would be appreciated.

skooch wrote:Hi,
My partner and I have been living in Singpore for a year now and my partner has an EP and I have a long term visitors pass. We are now thinking about buying a property instead of renting and I have a few questions that I hope you can answer.

1. Is there an advantage to being a PR when buying a property ?

Yes - you can purchase HDB housing which is cheaper, but don't think that that is enough to qualify you for PR.

2. Is it possible to get a mortgage where you only pay 10% deposit ?

You need to look around. The 20% deposit is also there for your protection so if the value of your property tanks it limits the difference between what you sell it for and what you have to repay the bank.

3. What additional costs do you have to bear in mind when buying a property ?

Read the property guide the main section of the website. Some useful pointers there. Transfer tax is about 3% of the value and then there are legal fees and bond registration fees. On going there are Levies and property tax and insurance costs. Depends on the block that you purchase as to how much this is.

4. Can anyone recommend any good financial advisers ?

I am amazed at the high cost of properties in Singapore and will struggle to raise a 20% deposit. Is there a way that people do this ie get loans for the deposit ? Silly question I know but its just so expensive !

You can take out a personal loan for the difference, but a) the interest rate will be much higher, the repayment period shorter and if you have to sell the property at a loss, you'll be much worse off.

skooch wrote: 1. Is there an advantage to being a PR when buying a property ?

Able to buy resale HDB.
For private property, no advantage

2. Is it possible to get a mortgage where you only pay 10% deposit ?

Government has disallow 90% loan

3. What additional costs do you have to bear in mind when buying a property ?

Stamp Fee
Legal Fee

I am amazed at the high cost of properties in Singapore and will struggle to raise a 20% deposit. Is there a way that people do this ie get loans for the deposit ? Silly question I know but its just so expensive !

Personal loan from Bank

credit line, ready credit, Overdraft,etc.
The interest very high.

your status can't by HDB, only choice is condo-foreigners eligible, well if u want to go HDB please consider applying PR

carteki wrote:You need to look around. The 20% deposit is also there for your protection so if the value of your property tanks it limits the difference between what you sell it for and what you have to repay the bank.

This is fundamentally incorrect. The large deposit ensures that the lender is protected against price drops. If you buy for $100K and sell for $80K, the bank is made whole while you are f*cked. If you had only 5 percent down, you'd both be f*cked, and the bank could try to come to you for the remainder... but maybe not.

Much healthier is for the bank to take on some appreciation risk... that way, they might not be so inclined to lend on inflated property values.

Thanks for the info. Looks like it will be a condo then and I have to start saving for the deposit !

By the way, is it cheaper to buy a property that hasn't been built yet ? Is there better deals to be had if you wait for the condo to be complete and buy off plan ?

as a rough guide to how much to save before buying, a 20% rule for the deposit and about 4% for the other expenses, then extra if you want to renovate furnish etc. So make sure you put aside about 24%.