Buying House in Singapore | TheFinLens


Buying House in Singapore | TheFinLens

Buying a home is definitely a life time investment in Singapore. This is a dream which can be real if you consider specific factors and plan and decide in an organized manner. It is advisable to seek professional help if there is any type of confusion. You need to remember that buying a house in Singapore is not like other shopping, this involves a lot of money and most probably you will be borrowing for this investment.

Factors to consider:

  1. Location:

Location is an important factor to consider before you invest in a home. You need to make sure this is not too far from your work place and has transport facilities available for commuting. You can also look for other facilities like a hospital close by, a shopping mall and more. You need to ensure that the specific location you have decided on offers the type of property you are looking for.

  1. Budget considered:

You need to choose between a private property and a HDB flat. Besides the eligibility factor you also have to take into account your wants and needs. The funds required for any private property is more than a HDB unit. The tenure of the loan for a private property is longer as compared to that of the HDB unit. It is almost 30 years for private property and 25 years for a HDB unit. Public housing offers you the advantage of choosing different grants and subsidies. You can get all the help from the different government help-lines.

When considering your budget you should consider the listed factors:


*Gross Income

*Type of residency (Permanent Resident, Foreigner, and Singaporean)

*Funds available in-hand

*Obligations of debt

*Existing property loans

*Tenure of the loan

*The type of property

*The type of purchase (single or joint)

In short, compare the Singapore houses prices before you decide on any specific property.

  1. The Loan:

You have a choice of multiple options for housing loans. Besides the HDB loans which are given only if you intent buying a HDB unit to loans with different terms and conditions offered by the different banks. Consider the different fees and charges of the loans before you make a choice. The factors to be considered are debt ratio, loan-to-value ratio, types of interest rates, charges for early repayment, tenure of the loan and other packages offered.

Consider how long you will be staying in that specific home and the possible appreciation of the property during that time.

Purchase of a Home:

The property you buy and intend selling after a specific span of time needs to be appealing to the prospective buyers. This needs to be maintained so that you get the desired price when you intend selling it.

You need to be aware that when you decide to sell a private property you need to wait for 30 months before you can decide on HDB BTO flat.

Different Types of Houses in Singapore:

Buy house in Singapore can be beneficial once you have decided on the type of property you are looking for. There is a wide choice available and some of these are

*HDB Public Housing:

HDB is any government housing in Singapore. This stands for housing development board. This property is not available to the citizens.

*Private Residential:

Private residential property is popular with the expats and is considered to be a luxurious version of the HDB units available. This property does not have any restrictions for foreign ownership. This private residential includes

  1. Apartments: which are similar to condominiums which feature few amenities as compared to the condominiums?
  2. Condominiums: are available with tennis courts, swimming pools, security and also a gym.
  3. Walk-up: is a condominium which is low built and does not have any lift.
  4. Executive Condominiums: This is a property which is public/private hybrid. This is due to the fact that though HDB issues the executive condominiums, but the features are similar to the private condominiums. This property is available to private residents and citizens.
  5. Landed Houses: A landed house is definitely a luxury but requires a lot of maintenance.

Expenses incurred:

It is important to take into consideration the different expenses besides the purchase cost of the house when you deciding on buying a house in Singapore.

  1. Payments of the Home loan:

Those who are buying a house for the first time need to make a down payment of only 5% for a bank loan with tenure of 25 years. You need to take into account the interest along with repayment which you will be making on a monthly basis for buying a house in Singapore.

  1. Maintenance and Renovation Costs:

The HDB resale flats do require some renovations and maintenance as this is not a brand new unit. Those deciding on the HDB resale flats need to account for any required renovations when planning on the budget of the house.

  1. Fire and Home insurance:

Home insurance is one of the most important expenses which cannot be over-looked. There are two types of insurance, fire and home insurance. The fire insurance is a requirement for most of the lenders for the HDB flats and tends to be cost-effective due to the HDB Fire insurance scheme.

Home insurance offers a comprehensive coverage which includes damage due to fire, burglary, leaks and also natural disasters. The cost of the home insurance policies are different and depend on the requirement.

  1. Property Cost:

The property tax depends on the annual value of the property. The property taxes are charged on a scale which is progressive in Singapore.

  1. Other Fees:

There are different fees to e paid when you buy a house in Singapore. Those who decide on a HDB resale unit need to pay $5000 and $500 to $2000 for a BTO. Those who decide on a private property or an executive condominium need to make a 5% payment.

It is important to consider the different costs involved in purchasing a home in Singapore before you decide on a specific house.


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