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I am a foreigner starting a new job in Singapore. I understand that to purchase a new condo unit, the initial entry cost will be 20% downpayment, 18% stamp duty and some legal fees. I am curious if the 20% downpayment could be offset by developer's discount? And is it really wise to buy now as a foreigner, or only after becoming a PR? Meanwhile, I am also looking for a private unit to rent, preferably below S$2000 per month as I am a Single.
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5 Answers

YT Tan (陈永达)
Replied
Good afternoon Calvin,

Great hearing from you!

Seems like you have a good knowledge about the initial outlay of purchasing a private residential property as a foreigner in Singapore.

Do take note that developer's discount will only be taken into consideration of the overall purchase price and not 20% downpayment.

20% downpayment is derived provided you are able to obtain max loan of 80%.

If you purchase now, you will incur 15% ABSD while 5% ABSD in the future if you turn SPR. 10% difference.

Lastly with a budget of $2000, probably you can still secure a studio/ 1 bedder depending on location.

Hope my explanation helps.

If you need any assistance or advice in your property needs, feel free to contact me. Cheers!

YT Tan
 9111 5171 
yt.lovelyhomes@gmail.com
www.yttan.com Read More
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  • CL
    Replied
    Hi YT, given that the discount is offset against the purchase price, will it also reduce the initial outlay - the down payment?
    For example, on $500K property, down payment is 20% or $100K. If the developer gives 8% discount on the $500K property, that translate to $40K discount and will this reduce the down payment to $60K ($100K-$40K)?
D. Kumar
Replied
Hi Calvin!
You may want to contact me at 96659926  for me to fully understand more of your requirements and expectations to further advise you on the financial flow and your options!

Visit my website to view my testimonials & recent awards to gather more information on me: www.kumarrai.com

Look forward to hearing from you!

D Kumar
 +65 96659926 
ERA Associate Division Director
www.kumarrai.com
www.singapore-newproperties.com.
contactdkumarrai@gmail.com

About Me-

ERA Top Achievers 2013/14
ERA Multi-Million Dollar Club Award
2014 ERA Asia-Pacific Business Conference Elite Award

P Group-
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2014 December ERA Top Achievers
2014 3rd Quarter ERA Top Achievers
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Ivan Ng
Replied
Hi,

Discounts are offset against the purchase price, and not the downpayment. Taking up PR status is a 10% savings in terms of taxes, but I would suggest that if you have mid to long-term plans here, then consider taking up the PR to get an property in Singapore. The ABSD taxes are not permanent, it may be revised for foreigners in the future. On $2K/mth, you should be to get a suburban studio depending on the location. Thanks and hope it clarifies.

Warm regards,
Ivan ERA
 97432395 
Ivanng10@gmail.com
Www.ivanng10.com Read More
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  • CL
    Replied
    Hi Ivan, given that the discount is offset against the purchase price, will it also reduce the initial outlay - the down payment?
    For example, on $500K property, down payment is 20% or $100K. If the developer gives 8% discount on the $500K property, that translate to $40K discount and will this reduce the down payment to $60K ($100K-$40K)?
CK Ang
Replied
Hi Calvin,
I have a 1 bed room unit apartment for rent (1 bed room, 1 bath room,1 kitchen, 1 living hall) within your budget. Please contact myself for details.

CK Ang
 9046 3808  Read More
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  • CL
    Replied
    Hi CK,
    Would you be able to share the details with me please?
    Thank you.
YT Tan (陈永达)
Replied
Hi Calvin,

Let's take your assumption for instance.

Listed price: $500k
20% downpayment: $100k

Discount: 8% - $40k
Discounted price: $460k
20% downpayment: $92k

Due to the 8% discount, there will be a reduction of downpayment of $8k.

Hope my illustration gives you a better idea of what I have elaborated earlier. Discount is on the overall price quantum and not the 20% downpayment.

Btw can you share more information/ requirements on your property rental via mobile or email cause Propertyguru doesn't prompt us when there's any reply to our post. Thanks! =)

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
Property Avenue Pte Ltd

(M): +65 9111 5171 
(E): yt.lovelyhomes@gmail.com
(W):www.yttan.com
(W):www.propertyavenue.com.sg Read More
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