Condo Buying Process

[LiamT]

Hi everybody,

I am a foreigner interested in buying a private condo with my fiancee who is a Singaporean citizen. I am looking at the Kensington Square project which is scheduled for completion in 2017

Despite being a Singaporean, my fiancee is of very little use in advising on the purchase process in Singapore, so I am hoping somebody on this forum might be able to provide some general advice. Apologies if these are very stupid questions.

From what I can deduce, the process seems to pay 5% (~$50k) of the total price immediately in order to secure an option to purchase and then pay a further 15% (~$200k) to exercise the option, which must occur within 8 weeks of purchasing the option.

The notion of paying $200k cash in advance for something that will not be completed for four years seems bizarre to me, as does the proximity of the option's expiry to its acquisition.

Is this process common in Singapore??

Any help would be greatly appreciated!!

Regards,

Liam

[therat]

From what I can deduce, the process seems to pay 5% (~$50k) of the total price immediately in order to secure an option to purchase and then pay a further 15% (~$200k) to exercise the option, which must occur within 8 weeks of purchasing the option.

yes. It's correct.

On top of it
You need to pay Buyer's Stamp Duty (BSD)

As a foreigner you are subject to Additional Buyer's Stamp Duty (ABSD) 15% of the property price.

You might want to read this for better understanding.
http://www.singaporeexpats.com/guides-f ... rchase.htm

And you might want to check with bank how much they can loan you before you commit to any property purchase
80% loan is max, it might or can be less than 80%.

[PNGMK]

Although there hasn't been a collapse or BK of a major developer for some time I agree this has some risk. This is why I bought a completed project.

[therat]

There are some small player did went bankrupt in the middle of construct the project and left the project uncompleted.

Check the reputation of the developer.

[Wd40]

From what I can deduce, the process seems to pay 5% (~$50k) of the total price immediately in order to secure an option to purchase and then pay a further 15% (~$200k) to exercise the option, which must occur within 8 weeks of purchasing the option.

yes. It's correct.

On top of it
You need to pay Buyer's Stamp Duty (BSD)

As a foreigner you are subject to Additional Buyer's Stamp Duty (ABSD) 15% of the property price.

You might want to read this for better understanding.
http://www.singaporeexpats.com/guides-f ... rchase.htm

And you might want to check with bank how much they can loan you before you commit to any property purchase
80% loan is max, it might or can be less than 80%.

I am pretty sure he will use his Singaporean Fiancee to buy the property to dodge the ABSD or he is from one of the FTA countries. But the fact that he brought up his Singaporean in the conversation, it should be the former.

[Fortan]

Perhaps this is a stupid question. The foreign PR holders here, do they have to pay the stamp duty as well?

[therat]

From what I can deduce, the process seems to pay 5% (~$50k) of the total price immediately in order to secure an option to purchase and then pay a further 15% (~$200k) to exercise the option, which must occur within 8 weeks of purchasing the option.

yes. It's correct.

On top of it
You need to pay Buyer's Stamp Duty (BSD)

As a foreigner you are subject to Additional Buyer's Stamp Duty (ABSD) 15% of the property price.

You might want to read this for better understanding.
http://www.singaporeexpats.com/guides-f ... rchase.htm

And you might want to check with bank how much they can loan you before you commit to any property purchase
80% loan is max, it might or can be less than 80%.

I am pretty sure he will use his Singaporean Fiancee to buy the property to dodge the ABSD or he is from one of the FTA countries. But the fact that he brought up his Singaporean in the conversation, it should be the former.

Unless he only use his Singaporean Fiancee name to buy the condo. Then he can able to dodge the ABSD.
Foreigner and Singaporean together buy a private property , it will be base on Foreigner, which mean ABSD come in.

As he does not mention where he from.
I only can assume he is not from FTA countries.

[therat]

Perhaps this is a stupid question. The foreign PR holders here, do they have to pay the stamp duty as well?

Yes.
But not that high (15%) compare to foreigner.

Quote from http://www.singaporeexpats.com/guides-f ... rchase.htm

b)(i) Singapore Permanent Residents (SPR) would have to pay ABSD of 5% on the purchase or acquisition of their first residential property.

b)(ii) Singapore Permanent Residents (SPR) who already own 1 or more residential properties would have to pay ABSD of 10% on the purchase or acquisition of another residential property.

[Fortan]

Perhaps this is a stupid question. The foreign PR holders here, do they have to pay the stamp duty as well?

Yes.
But not that high (15%) compare to foreigner.

Quote from http://www.singaporeexpats.com/guides-f ... rchase.htm

b)(i) Singapore Permanent Residents (SPR) would have to pay ABSD of 5% on the purchase or acquisition of their first residential property.

b)(ii) Singapore Permanent Residents (SPR) who already own 1 or more residential properties would have to pay ABSD of 10% on the purchase or acquisition of another residential property.

So in the case of the OP who is a first time buyer it appears, he could essentially save SGD 200,000 on a property worth 2 mill? 5% (100k)stamp duty instead of 15% (300k) by getting his PR? That's actually worth considering.

[zzm9980]

Perhaps this is a stupid question. The foreign PR holders here, do they have to pay the stamp duty as well?

Also, I suspect you're American from your Sriacha question. Americans (and 2-3 other nationalities) benefit from specific free-trade agreements with Singapore and are able to pay stamp duty at the same rate as Singaporeans.

[Wd40]

Perhaps this is a stupid question. The foreign PR holders here, do they have to pay the stamp duty as well?

Yes.
But not that high (15%) compare to foreigner.

Quote from http://www.singaporeexpats.com/guides-f ... rchase.htm

b)(i) Singapore Permanent Residents (SPR) would have to pay ABSD of 5% on the purchase or acquisition of their first residential property.

b)(ii) Singapore Permanent Residents (SPR) who already own 1 or more residential properties would have to pay ABSD of 10% on the purchase or acquisition of another residential property.

So in the case of the OP who is a first time buyer it appears, he could essentially save SGD 200,000 on a property worth 2 mill? 5% (100k)stamp duty instead of 15% (300k) by getting his PR? That's actually worth considering.

Last week I met an Indian PR family who have applied for citizenship to save on the 5% ABSD

[Fortan]

Perhaps this is a stupid question. The foreign PR holders here, do they have to pay the stamp duty as well?

Also, I suspect you're American from your Sriacha question. Americans (and 2-3 other nationalities) benefit from specific free-trade agreements with Singapore and are able to pay stamp duty at the same rate as Singaporeans.

Nope, I am actually European and have never lived in the US. We have the good chili sauce in Europe as well now

[the lynx]

Perhaps this is a stupid question. The foreign PR holders here, do they have to pay the stamp duty as well?

Also, I suspect you're American from your Sriacha question. Americans (and 2-3 other nationalities) benefit from specific free-trade agreements with Singapore and are able to pay stamp duty at the same rate as Singaporeans.

Nope, I am actually European and have never lived in the US. We have the good chili sauce in Europe as well now

And also Iceland, Liechtenstein, Switzerland and Norway. If OP is from any of the above countries, he is eligible too.

[therat]

Yes.
But not that high (15%) compare to foreigner.

Quote from http://www.singaporeexpats.com/guides-f ... rchase.htm

b)(i) Singapore Permanent Residents (SPR) would have to pay ABSD of 5% on the purchase or acquisition of their first residential property.

b)(ii) Singapore Permanent Residents (SPR) who already own 1 or more residential properties would have to pay ABSD of 10% on the purchase or acquisition of another residential property.

So in the case of the OP who is a first time buyer it appears, he could essentially save SGD 200,000 on a property worth 2 mill? 5% (100k)stamp duty instead of 15% (300k) by getting his PR? That's actually worth considering.

Last week I met an Indian PR family who have applied for citizenship to save on the 5% ABSD

It is quite common I can said. Every one is trying to cut corner.

My ex-colleague, couple from China. Husband apply citizenship while wife remain as PR, in order to buy BTO flat.
Another reason wife remain as PR is , if pregnant, scan is a girl , wife will give birth in Singapore to get all the baby bonus, etc.
If scan is a boy, the wife will return to China to give birth and the baby boy take China citizenship to avoid NS.

[sundaymorningstaple]

If boy, they will probably be in for a big surprise as the gahmen will align PR & birth and figure out the scam (pretty easy as they already seen it so many times) and then when she tries to get a student pass or even an LTVP for the boy, it will probably be rejected.