Nearly more than 30% of Singaporeans own more than one residential property, according to the Singapore Business Review. Yes, you heard us right. There are indeed many rich Singaporeans living amongst us! While owning a second condominium is not uncommon, the questions “is it really necessary?” or “what are the procedures?” still looms overhead.
As much as I want to say, ‘just do it’ (and do get it done with me), there are 3 questions you should ask yourself before sinking your teeth into looking for the next show flat to visit. For most people, navigating the Singapore property legislation is not an easy feat; you don’t want to realize at the end that you’re unable to even purchase your property.
1 )What type of property am I looking for?
It is not as straightforward as just ‘public’ or ‘private’ housing. In each category, there are sub-categories, with each sub-category resulting in a different course of action.
Public housing includes Housing Development Board (HDB) flats – ranging from 2-room flexi flats to executive flats, Design, Build and Sell Scheme (DBSS) flats, Housing and Urban Development Corporation (HUDC) flats and Executive Condominiums (EC).
On the other hand, private housing consists of condominiums, apartments, walk-ups, conservation houses, terraces, shop houses, townhouses, cluster houses, semi-detached houses, bungalows and good class bungalows.
The table below is a concise checklist on what you need to do before you can buy your second property, since you already have a residential property under your name.
The location of the new launch that you want to buy also has an impact on the price. For example, take a look at our District 9-11 properties and see if it is something that you can afford.
2) Why am I purchasing a second property?
The purpose of your purchase would define the factors you need to consider before buying your second residential property. Hence you need to ask yourself: are you looking to invest? Or are you planning to stay there? The table below sums up the few most relevant factors you should consider.
3) Can I afford it?
Being able to cover the purchase price of the property is not the only cost you will incur when purchasing that property. Here is a list of other costs that are associated with the purchase of a second property:
Additional Buyer’s Stamp Duty (ABSD)
ABSD was first introduced on 7th December 2011 as one of the measures the Singapore government adopted to cool the property market. In 2013, the ABSD was further revised to curb demand in the property market. Current ABSD rates are shown in the table below.
This translates to paying an additional 7% of the purchase price or current market value of the property, whichever is higher, on top of the purchase price itself, assuming you are a citizen of Singapore.
If you are unsure and just want a reliable and experienced person to guide you along, why not call Maureen at 9060 5104 or Kar Wei at 8128 9565? We’ll be glad to share our experience with you and guide you along the way. Alternative, drop us an email using the form on this page.