Singapore Property | We are discussing on things first timers ought to do when purchasing a condo. Purchasing a new condo in Singapore is a great achievement. The decision to buy a new condo is solely based on how committed you’re financially. This is important because of the high property prices and this financial commitment could last for several years. Home seekers can also consider these before purchasing their first condo;
1. Leasehold or Freehold: Leasehold properties are properties that are held for a limited number of years before it is given back to the government. Leasehold properties come with developments that have a 999-year leasehold or 99 -year leasehold. While the Freehold properties are properties with no time limit, these properties may not be given back to the state when it is purchased. Freehold property is more lucrative and more popular. Either you purchase a leasehold or a freehold depending on what you choose, they’re great property to build a home and pass it down to your children.
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2. Housing loans: Purchasing a condo can be tough at times that’s why a housing loan can be necessary. You can take up a loan in the bank if you’re not looking at purchasing in cash. When checking out a loan, make sure you compare interest rates and packages presented by different banks. Some bank loans may require you to set aside 5% of your property’s value in cash, another 20% from your CPF account.
3. Property taxes: This feature is another hidden cost buyers overlook. The property tax is calculated by using the annual value of your property multiplied with tax rates presented by IRAS. The annual value is the amount generated yearly on the property as regards of rental income. These values are estimated considering estimated market rates. Investors who want to purchase their second property will also consider the additional buyer’s stamp duty.