What Is Needed To Become An Owner Of Real Estate In Singapore?
Singapore is one of Asia’s wealthiest nations. As you can probably guess because of the nation’s wealth, it is also a place where property prices are very high. If you intend on buying property there, then you need to do a lot of research. It’s especially important to conduct research if you aren’t from Singapore and don’t hold citizenship there.
Some countries do not allow foreigners to own property. If you want to know whether or not Singapore does, then this post’s got you covered. Here is everything that you need to know about owning real estate in Singapore:
The first thing that you need to do if you want to become the owner of real estate in Singapore is research the nation’s house prices. As mentioned in the introduction, house prices are soaring. The cheapest type of property that you can buy in Singapore is condominiums. Researching how much condos cost in Singapore is essential so that you can familiarise yourself with property prices. It is worth noting that condos cost significantly less than landed property does. Working with a professional realtor and using property search sites will make finding a property that’s within your price range a lot easier. It’s always a good idea to haggle with property sellers, also. Haggling can bring down the price of the property that you are buying by a lot. If you have a professional and experienced realtor haggling for you, then they could get you a very large discount.
Foreigners are allowed to buy private properties in Singapore, although they need permission from the government to purchase properties with land attached, like bungalows and houses. The ownership of private apartments and condominiums is not restricted, although if you intend on purchasing an executive condominium, then it must be at least 10 years old. Additionally, foreigners are unable to purchase HDB flats. If you are intending on buying landed property, then make sure that you get written approval from the government first. A failure to acquire written approval could cause your deal to fall through because the property’s seller won’t be able to legally transfer the deed to you.
If you want to own property in Singapore, then you need to be at least 21. There are some cases where people under the age of 21 can purchase property, but as a non-citizen, they likely won’t apply to you. It’s also worth noting that if you do intend on purchasing an HDB flat, if you are single and unmarried, then the minimum age is 35. As mentioned in the previous section, non-citizens cannot purchase HDB flats. You will need to first become a citizen of the nation, and then meet the age requirements if you want to get your hands on one.
If you are a non-citizen, then there are some restrictions regarding the types of properties that you can buy (as mentioned previously). You cannot purchase vacant residential land, a terraced house, a semi-detached house, a bungalow, strata land that isn’t part of an approved condominium development, or a shophouse for non-commercial use. Attempting to purchase any of these can result in your deal being canceled. If you do manage to transfer a property’s deed of ownership somehow without the government’s permission, then they can seize the land and you can receive a very large fine.
If you are a non-citizen, then you will be required to pay Additional Buyer’s Stamp Duty (ABSD) tax. The rate is 30% regardless of how many properties you are buying. It is worth noting that U.S. citizens and nationals of Switzerland, Liechtenstein, Norway, and Iceland don’t have to pay ABSD. If you want to significantly reduce the amount of tax that you have to pay on your property, then you may want to consider applying for citizenship, which will be addressed in the next section. Make sure to work out taxes before buying a house, so that you know exactly how much you have to spend.
Despite what a lot of people think, it’s actually very easy to get citizenship in Singapore. All that you need to do is obtain employment in the nation, marry a Singaporean citizen, or start a business there. After you have resided in the nation for two years, you can then go ahead and apply for full citizenship. Becoming a Singaporean citizen will make purchasing property a lot easier (and considering there are fewer taxes to pay, a lot cheaper too).
Anybody can own property in Singapore, as long as it’s an approved property. If you want to own a restricted type of property, then you need to get the government’s permission. Applying for the government’s permission is a very straightforward process, and most applications are accepted. You can ask the realtor or agent that you are working with to help you to make your application if you want landed property.