4 Answers

Jerry Wong 黃崇豪
Hi Li

I believe you already have the foresight to invest in real estate in Singapore. As for the legal issues, the answers are as follows

1.To strike a balance between giving citizens affordable housing as well as allowing foreigners an opportunity to invest in our country. The government came up with the residential property act in 1973. You can refer to the following link below for more information on the restrictions of foreign ownership of properties in Singapore.

http://www.sla.gov.sg/htm/ser/ser0306.htm

The only exception would be those Bungalows on Sentosa island where one recent transaction made the headlines because it was sold for a record price of $39mil to a foreigner from India. However, if you are someone who has a major economic contribution to Singapore, it is still possible to purchase even a Good Class Bungalow on the mainland. I'm sure you already know of a Chinese National who was able to do that.

2.For foreigners, a recent 10% additional buyer's stamp duty was imposed. This is on top of the normal stamp duties of about 3%. Property tax is 10% of the annual value of the property if you are not staying within the unit. For exact calculations and remissions of these duties, here is a link for in depth study.

http://iras.gov.sg/irasHome/page.aspx?id=910

3.There are 3 important people involved in the real estate transaction. The salesperson, the lawyer and the banker. You need 3 of them to work. Unless if you are paying for the property in full, you just need the salesperson and the lawyer.

4.Yes you are able to. Refer to point number 1 for more information.

If you are keen in purchasing developments in Sentosa, districts 9,10,11 as well as the new and upcoming CBD area directly from the developer. Do feel free to contact us as we are the sole marketing agent for various new launches. The following link is just an example of what we have at Sentosa

http://www.developersalesteam.sg/the-residences-at-w.html

Best Regards
Jerry Wong
Huttons Asia Pte Ltd
HP:97429185
e-mail:jerrywong.property@gmail.com
www.developersalesteam.sg Read More

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Radhika Prakash
Hello Li,

Please write to me on realproperty63@yahoo.com.sg

Regards,

Radhika Prakash
Global Realtor
DTZ Debenham Tie Leung Read More

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Mike Tay
Hi Li

你好! Please find the answer below:

1) are foreigners allowed to buy private properties (e.g bungalows and penthouses)?

ANSWER:
Yes, foreigners penthouse but not bungalow in Singapore mainland. There is no limit to the number of units a foreigner can buy. However, note that foreigner is only eligible to buy with condominium/apartments i.e. not landed property. Details here http://www.sla.gov.sg/htm/ser/ser0306.htm

Foreigners can only buy landed properties in Sentosa Cove.

2) Can someone explain and elaborate these Additional costs (how much I have to pay as a foreinger) such as stamp duty, property tax, personal income tax for foreigners who are not residing in Singapore but buy property for investment/renting out

ANSWER:
The normal stamp duty is 3%-$5400 (mathematical formula). In addition, foreigners need to pay an Additional Buyer Stamp Duty (ABSD of 10% of the purchase price.

Property tax for non-owner occupied property is 10% of Annual Value (AV). AV is the estimated annual rent of your property determined by the tax authority annually.

Rental income must be declared accordingly as your other income in your tax assessment. Singapore income tax is based on a progressive tax regime. Detail on income tax as link http://www.iras.gov.sg/irasHome/page04.aspx?id=1190

Finally, please also note that if you sold your residential property within the 1yr, 2yrs, 3yrs, 4yrs - you are liable to pay Seller Stamp Duty of 16%, 12%, 8% and 4% respectively.

3)What are the steps I have to take to invest in properties in Singapore? Do I have to get a local lawyer to settle legal issues like signing of contracts or just any qualified sales person will do?

ANSWER:
For sourcing, negotiating, advising on the property purchase, you need to engage a local professional salesperson.

For handling the sales completion, you need to engage a conveyancing lawyer. If you are taking a bank loan, most bank will subsidies the legal fees and they have a panel of lawyers for you to choose.

In summary,
a. Engage a professional salesperson, who can help you in your property purchase.
b. If you are taking bank loan, get a In Principal Approval from the bank. This will determine the amount you can borrow and property purchase budget.
c. Take note of additional buyer stamp duty of 10% (for foreigners).
d. Take note of seller stamp duty if you intend to sell within 4 years of purchase. Current stamp duty of 16%, 12%, 8%, 4% if you sell within 1st, 2nd, 3rd and 4th year.
e. Speak to a conveyancing lawyer if you need additional legal advise.

4) Am I allowed to purchase 10 properties at one go? Is there a limit to the number of properties I can purchase? [I am planning to invest in properties in Sentosa as well as well-known districts 9-11]

Yes, you can buy 10 properties in one go - except foreigners are not allowed to acquire all the apartments within a building or all the units in an approved condominium development without the prior approval of the Minister for Law

There is no limit to the number of properties you can buy. And yes, Foreigners can buy Bungalow (with approval) in Sentosa Cove.

Do call me at (65)-9745-5178 or email miketaysoen@gmail.com if I can help you in your property purchase.

Thks & regards,

Mike Tay (郑树荣)

B.Sc. (NUS), EMBA (SUNY)
CEA Reg:R042367C

M: +65 97455178
E: miketaysoen@gmail.com

W: http://www.miketay.myweb.sg
W: http://miketay.irealtor.sg/

HSR International Realtors Pte Ltd
Estate Agent Reg No: L3002226G Read More

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Ken Tan
Hi,

2 suggestions

KL CBD
Special deal with developer, immediate capital gain, contact me to find out why.

SG CBD
high Rise development, TOP in a few months.
Selling at price lower than the current developer selling price, sheltered walkway to MRT. District 08. Amazing Views

- potential gain due to price difference
- rental demand due to MRT
- city area

Contact me for details

Ken Tan
96461490 Read More

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