Need Help On Buying A Property In Singapore

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etcmat
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Need Help On Buying A Property In Singapore

Post by etcmat » Wed, 24 Nov 2004 10:11 pm

Hay everyone, I have just found this forum and I'm looking for some advice on buying a property in Singapore.
I have visited Singapore on several occasions over the past few years and I have to say I love it over there, I remember the first time I want I made a comment that this was the place for me!

Anyway, I had not managed to make it out to Singapore for quite a while, well until last week that is! I have just got back and again remembered why I fell in love with the place so much. Anyway since the last time I went to Singapore a lot has happened with my personal and financial circumstances, and I feel that I am now in the position were I could purchase a property in Singapore.

While I was over there last week I looked around a few places the sales/rent, but the one I liked the most was The Sail @ Marina Bay (if you have not seen it, go and check out the show studios!).
While there I talked to someone about financing the purchase, however I am looking for as much information I can get on this matter.

So basically, if anyone can help me, or point me in the right direction of where to look, or who to ask about how to go about purchasing a property in Singapore please let me know.
Information such as...
- I need to know about any taxes that I will incur (I know about the 3% stamp duty, but are there any more?)
- Point me in the right direction of mortgage lenders who will be able to help me finance the purchase. Can I get a mortgage from here in the UK to finance the purchase, or does it need to come from a bank in Singapore?

Any information at all on buying a property in Singapore would help me a great deal.
Thanks to everyone who spent the time reading my post.

Mat

Singapore Property Search

 

rentamaid2002

Post by rentamaid2002 » Thu, 25 Nov 2004 7:42 pm

hi...

i believe that there are quite a fair bit of info to tell you on the purchase of an apt...and its kinda long to put everything here.


well i guess u can ask the admin or maybe get some info from some realty companies here.

you can ask me if u want...

cheers

etcmat
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Post by etcmat » Thu, 25 Nov 2004 8:04 pm

Hay people, just looking at some of the guides on buying a property.

"How much cash upfront you willing to pay for the property? How much CPF in your ordinary account that you can use for the purchase? The latest MAS ruling allows purchaser to loan up to 80% of the valuation or purchase price, whichever is lower. 10% must be paid in cash and the other 10% can be paid using CPF or cash."

Can anyone tell me what CPF is please?
I also read somewhere that as I am a foreign buyer I can only lend up to 60% of the valuation cost, and not 80%! Is this true?

Cheers,
Mat

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joop
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Buying property

Post by joop » Thu, 25 Nov 2004 8:22 pm

etcmat wrote:Hay people, just looking at some of the guides on buying a property.

"How much cash upfront you willing to pay for the property? How much CPF in your ordinary account that you can use for the purchase? The latest MAS ruling allows purchaser to loan up to 80% of the valuation or purchase price, whichever is lower. 10% must be paid in cash and the other 10% can be paid using CPF or cash."

Can anyone tell me what CPF is please?
I also read somewhere that as I am a foreign buyer I can only lend up to 60% of the valuation cost, and not 80%! Is this true?

Cheers,
Mat
Hi Mat,

The norm for foreign buyers is 70%, but if you have a strong financial backing, they might be able to push up to 80%.

FYI on CPF (Taken from http://www.finatiq.com/helpcentre/Hcr_Basics_CPF.shtm )

What is Central Provident Fund?
The Central Provident Fund (CPF) is a government-run social security scheme. Funds are contributed both by you and your employer and can be used by you for retirement, home ownership, healthcare expenses, your child?s tertiary education, investments or insurance. Under statutory law, all Singapore citizens and Permanent Residents in employment have to contribute to this scheme, while self-employed Singapore citizens and Permanent Residents have to contribute to Medisave only.

From 1 January 2004, the total CPF contribution rates are 33% if you are below 55 years old, 18.5% if you are between 55 and 60, 11% if you are 60 to 65, and 8.5% for people aged over 65 years. The CPF is divided into four types of accounts Ordinary, Special, Medisave and Retirement (for those aged over 55 years).

Ordinary account: the savings can be used to buy a home, pay for CPF insurance, investment and education.

Special account: for old age, contingency purposes and investment in retirement-related financial products.

Medisave account: the savings can be used for hospitalisation expenses and approved medical insurance.

Retirement Account: You can withdraw your CPF ordinary account savings in a lump sum when you reach 55 years old (on or after 1 Jul 1999), after a statutory required minimum sum of S$84,500 has been set aside. The amount you can withdraw will depend on your available balance. You can make future withdrawals six months after the initial withdrawal (if you are retired) or every three years. Fixed monthly withdrawals from the retirement account will start when you are 62 years old. Alternatively, the entire amount can be used to purchase an annuity, which also provides a fixed monthly income.

How can CPF be used?
1. Property
The CPF Ordinary account is approved for the purchase of residential (only for 80% of the value) and commercial properties (only for 70% of the value). Residential real estate includes freehold and leasehold private property (at least 60 years lease remaining) located in Singapore.

You can use the entire funds in the Ordinary account to cover the initial down payment for HDB. For private residential property, you have to pay your initial downpayment in cash. You can use your future CPF contributions to finance installment payments for these purchases. If your monthly contribution does not meet the mortgage instalment in full, you can use funds from the Special account but capped at 6% of your November 1998 salary. However, if in 1999 you did not accept this offer, you will not be able to use the special account.

If you sell your property, the proceeds from the sale of your property must be used to first repay the principal amount withdrawn plus accrued interest to your CPF account. Any remaining balance is credited to you.
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etcmat
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Post by etcmat » Thu, 25 Nov 2004 8:30 pm

Thanks joop for the quick response. I was just wondering though if you know of anyone I can contact about getting mortgage and the likes. I am guessing it's going to be basically the same principle as buying a house over here were you seek the advice of an Financial Advisor and they point you in the right direction. Is this how it works in Singapore, and if so how can I find one?

Cheers again,
Mat

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Need Help On Buying A Property In Singapore

Post by chelwin » Mon, 20 Dec 2004 5:42 pm

Hi Mat,
Thank you for loving my country.
Maybe you can check out the following website for more Singapore Info :
http://www.contactsingapore.org.sg/
Cheers
Chelwin
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joop
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Post by joop » Mon, 20 Dec 2004 5:47 pm

etcmat wrote:Thanks joop for the quick response. I was just wondering though if you know of anyone I can contact about getting mortgage and the likes. I am guessing it's going to be basically the same principle as buying a house over here were you seek the advice of an Financial Advisor and they point you in the right direction. Is this how it works in Singapore, and if so how can I find one?

Cheers again,
Mat
We collaborate with a few banks for the best deals and advice. You could email me at enquiry@singaporeexpats.com and I will provide you with our banker's contacts.
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