Foreigner's Guide to Buying Property in Singapore: How to Navigate the Wild World of Real Estate
Are you a foreigner looking to buy property in Singapore? Don't worry, we've got you covered! Here's the essential guide for expats and foreigners who are brave enough to navigate the property market in the Lion City.
Let's dive into the juicy details:
What types of real estate can foreigners buy in Singapore?
Well, let's just say you won't be able to buy a piece of land to build your own private island. But fear not, foreigners can largely buy most condos, some strata landed houses, landed houses on Sentosa, and an executive condominium that is more than 10 years old. Sorry folks, the villas at Normanton Park are off limits to non-citizens, so you'll have to settle for a different swanky pad.
Does being a Singapore permanent resident (SPR) make a difference?
Yes, it does! SPRs have a few more privileges, such as access to HDB flats and executive condominiums, as well as the ability to apply for a landed house (but only if they demonstrate an economic contribution to the country). They also have significant tax implications, so be sure to consult a tax expert before making any big moves.
What taxes do foreigners need to pay when buying property in Singapore?
Anyone buying a property in Singapore must pay the Buyer’s Stamp Duty (BSD), which is calculated based on the property value. On top of that, foreigners must also pay an Additional Buyer’s Stamp Duty (ABSD), which is different for SPRs and non-SPRs. If you're not from one of the lucky countries (Iceland, Liechtenstein, Norway, Switzerland, or the United States), you'll be forking out a whopping 30% in ABSD as of 2023.
An example: The Avenir (located at River Valley)
Estimated price at $1.7 million for a 1 Bedroom ( 527 sqft)
Total Stamp Duty
S$ 564,600.00
Stamp Duty
S$ 54,600.00
Additional Buyer Stamp Duty
S$ 510,000.00
(30%)
Property Purchase Price
S$ 1,700,000.00
In total you’re looking at a total outlay of S$ 2,264,600.00
Can foreigners apply for mortgages?
Yes, they can. However, there are some restrictions on the loan to value (LTV) ratio and minimum cash downpayments. Basically, the bank will only give you a certain percentage of the property value, and you'll need to pay the rest in cash. So, start saving up those pennies, my friend.
Do I need an agent to buy a property in Singapore?
Technically, no. But let's face it, navigating the property market can be a real headache. Why not get yourself a trusty buyer's agent to help you out? We'll assess and negotiate pricing, as well as navigate the paperwork, taxes, and fees. And the best part? You'll have someone to rant to when things get frustrating.