more-infor

Buying Guide

Thu, 08 Dec 2011 19:59:40 +0100

Once you have found a property you want to buy, this document explains the steps to actually complete the purchase. Note that at this point you may want to appoint a solicitor to act for you - but please consult your agent about this first. You will need a solicitor in these phases of the purchase process: to act in purchase, to act in mortgage (if you are taking a loan from the bank), and to act in withdrawal of funds from the CPF Board (if you are using CPF Funds). Typically, one solicitor can do all of this, so there is no need to appoint multiple solicitors.

Before you sign any contracts, make sure you can actually get the money to purchase the property. Any deposits paid for reserving the property will be forfeited if you cannot go through with the transaction - unless the cancellation is due to conditions stated in the contract.

Financing the Property

Most people will finance their property using a bank loan (mortgage). The amount you can borrow will depend on your own personal financial circumstances plus the bank's valuation of the property or the actual transaction price (whichever is lower). Singaporeans can usually borrow up to 80% of the value and foreigners usually up to 70%. The bank will take into account your capacity to pay the monthly instalments - for this they will evaluate your income, assets, employment history and your age, and they will also check your credit history for any previous payment problems.

For the deposit you can use your Central Provident Fund (CPF) savings, if you have an account, and the rest has to be in cash. A Singaporean with good CPF savings might not need much cash to pay for a property, but foreigners should expect to have at least 20% in cash (+ fees) at hand to purchase a property.

If you are buying a HDB apartment, you should check the eligibility to get a concession loan from HDB. If you are not entitled to get the loan from HDB, you need to finance it with a normal commercial mortgage.

You should meet with your banker or mortgage broker before you sign any contracts to see whether you can actually secure the financing when you need it. Agents can also refer you to a bank or mortgage broker if you do not already know one.

Necessary Documents

The contractual part is typically a simple two step process. First you will sign an ‘Option to Purchase’ agreement with a good faith deposit. Following this, you have 14 days to decide whether to go ahead or not with the purchase. Alternatively, you can just give the seller the full deposit on ‘Offer to Purchase’ and bypass the ‘Option to Purchase’. After this, you will sign the ‘Sales and Purchase Agreement’ with the seller to complete the sale.

Option to Purchase

Once you have decided to purchase the property and agreed the price with the seller, you should ask for an ‘Option to Purchase’ agreement. The ‘Option to Purchase’ agreement is typically prepared by the seller’s agent or solicitor, and you should therefore go through it with your agent or solicitor before signing. However, any amendments need to be agreed by the seller. Typically 1% of the purchase price is given to the seller in exchange for the option as a good faith deposit.

‘Option to Purchase’ usually gives you a 14-day exclusivity period to decide whether to purchase the property or not. The seller is not allowed to offer the property to another buyer during this period. If you decide to exercise the option by signing it, you will send it back to the seller (or his/her solicitor) with another 4% or 9% of the purchase price (whichever was agreed in the option).

If you do not exercise the Option within the stated period, the Option will expire and the seller is entitled to keep the 1% option money and sell the property to any other buyer.

Offer to Purchase

If you do not wish to have the grace period given by the option, you can always make a binding offer directly – ‘Offer to Purchase’. This should be prepared by your solicitor or agent, and would state the price, completion date and other conditions that you may have.

If the seller accepts the offer by signing the ‘Offer to Purchase’, you can directly proceed to the Sales and Purchase Agreement. At this point a deposit of 5% or 10% of the purchase price is typically given to the seller.

Sales and Purchase Agreement

After the ‘Option to Purchase’ or ‘Offer to Purchase’ has been signed, your solicitor will do the necessary steps to complete the sale – lodge a caveat on the property, coordinate with the bank/CPF board for the mortgage, and prepare the contracts. This process will typically take up to 10 weeks to complete.

Inspection before Taking over Property

The ‘Option to Purchase’ should clearly state a permission to inspect the property before completion of the sale. The buyer should check everything that the seller has agreed to sell with the property – especially all the fixtures and fittings, e.g. air conditioning, kitchen appliances, etc. If there are any problems, you can ask the seller to fix them before you sign the Sales and Purchase Agreement.

If you are buying an HDB apartment, the Housing Development Boad will do the inspection on your behalf. They will check for any unauthorised renovation. The seller will need to reinstate the flat into the condition allowed by the HDB before it will approve the sale.

Fees and Commission

There are various fees that come on top of the purchase price when the sale is completed, and you should therefore reserve money to pay for them. Fortunately, some of them are borne by the seller. These are summarised below:

Agent's Commission - For private property, the agent's commission is paid by the seller - unless you have specifically appointed an agent as a representative. The seller typically pays 2% commission on the sale. For HDB apartment, the buyer pays typically 1% commission.

Solicitor's Fee - For the buyer, the solicitor’s fees are typically 0.3-0.6% of the transaction value. In addition, there are extra legal fees if CPF is used to pay for the apartment. The seller pays typically 0.15% of the transaction value to his/her solicitor.

Mortgage Fee - The banks typically charge an administration fee and valuation fee for the mortgage. These together are somewhere between S$200-300. In addition, you need to take out on insurance on the property for the bank to give out the mortgage.

Stamp Fee - The stamp fee will be payable to Inland Revenue Authority of Singapore within 14 days upon exercising the Option to Purchase (or signing the Sales and Purchase Agreement when you buy from a property developer). For properties above S$300,000, stamp fee payable will be 3% of the purchase price minus S$5,400. The mortgage stamp fee is up to S$500, which is the amount payable for most mortgages.

introduction

Thu, 08 Dec 2011 19:58:29 +0100

Introduction

When moving to Singapore for the first time, an Expatriate would normally rent an apartment or a landed house. Expatriates are generally concentrated in certain areas that have a wide variety of condominiums to choose from. Typically you would consider the following factors when looking for a property for the first time in Singapore:

Budget for rental
Type and size of property you want to live in
Distance to work and transportation links
Proximity to international schools, if you have any children of school going age.
Restaurants and entertainment and other free time options in the neighbourhood
Distance to the Airport, if you or your partner plan to travel a lot

Let's have a look at the regions in Singapore first and then tackle the main factors in detail.

Regions in Singapore

Singapore is approximately 50km wide and 30km long, and the city centre is located in the central southern part of the island. The main office area that is in the city centre is also referred as Central Business District (CBD), and the main shopping area is around Orchard road, as well in the city centre. As most of the entertainment options are also concentrated in the central area, it is not surprising that the most popular areas for expatriates to live in are in and around the city centre - but there are other attractive options as well. Singapore is divided into 27 districts starting at '1' in the central area as shown below

Map of Singapore Island

District Map of Singapore

Central Area (Districts 01 – 09, 11)

Central areas offer some of the most luxurious and expensive living in Singapore. Tanglin area and the road towards Holland Village at the end of Orchard Road is probably the most prestigious - and most embassies are located around here as well. Newton (north of Orchard) and River Valley (south of Orchard) are more popular among single professionals and young couples. The Singapore river area (Robertson Quay, Clarke Quay & Boat Quay) has especially been rejuvenated in the recent years and boasts now numerous restaurants and bars. On the other hand, there are few condominiums in the CBD and the activity can be somewhat quiet during the evenings as it is mostly offices. Central areas offer very short distances to most free time attractions and are also well served by public transportation to and from to various parts of the island.

Holland Village and Bukit Timah (Districts 10, 21, also parts of District 05)

Bukit Timah area has many landed properties, but there are also some condominiums to choose from. It would be a good choice if you want a landed property and/or live in a quieter neighbourhood. It also has many good schools and is popular among families. Many well-off Singaporeans also live in this area. Holland Village is popular hang-out place among expatriates living in the area and it has quite a few restaurants and bars, as well as some shopping amenities for daily needs. Bukit Timah Nature Reserve and water reservoir areas are also nearby. They are the biggest green spaces in Singapore and are very popular for outdoor activities.

East Coast (Districts 14, 15, 16)

The road from CBD towards Changi Airport, know as East Coast, has numerous Condominiums to choose from - some with a very nice sea view. The condominiums tend to be more expensive closer to the city centre (known as Tanjong Rhu area). Apart from the attraction of living close to the sea, there is also East Coast Park that stretches along the coast and gives numerous free time options for the outdoor types. Parkway Parade offers some large scale shopping in the middle of East Coast.

The biggest downside in the east coast is probably the distance to the MRT line. The Eastern MRT line does not go along the coastline, and you would have to take a bus to the MRT station, or just use a taxi, if you do not opt for own car. However, a new Circle Line due to be completed by 2010 will add 4 new stops to the West side of the East Coast area.

Other Areas

It is not to say that there are no other options for expatriates. There are condominiums and private housing on offer all around the island and you may also get more for your money than in the most popular areas. Notably Woodlands is popular among American Expatriates, because of the American school and the spacious housing offered there - preference among them being for landed properties.

Budget and Property Prices

The rental prices fluctuate heavily depending on the supply and demand of the available units. The rental prices for private properties have in many places doubled in the last two years, as also happened during the 90's property boom. The following table gives you a rough idea what you can expect with what kind of budget currently:

Location	Property Type	Rental Range
Central (Newton, Holland Village, River Valley, Orchard, Tanglin)	1-bedroom apartment	S$3,000 – S$7,000
	2-bedroom apartment	S$3,500 – S$8,000
	3-bedroom apartment	S$4,500 – S$10,000
	Penthouse / 4+ bedrooms	S$6,000 – S$20,000
	Terraced House	S$6,000 – S$25,000
	Bungalow	S$15,000 – S$60,000
East Coast & Bukit Timah	1-bedroom apartment	S$2,500 – S$4,000
	2-bedroom apartment	S$3,000 - S$5,000
	3-bedroom apartment	S$3,500 - S$7,000
	Penthouse / 4+ bedrooms	S$5,000 - S$15,000
	Terraced House	S$7,000 – S$10,000
	Bungalow	S$12,000 – S$40,000
Other Areas	1-bedroom apartment	S$2,000 – S$3,000
	2-bedroom apartment	S$2,500 – S$4,000
	3-bedroom apartment	S$2,800 – S$5,000
	Penthouse / 4+ bedrooms	S$3,200 – S$8,000
	Terraced House	S$5,000 – S$10,000
	Bungalow	S$8,000 – S$20,000

Property Type – House vs. Apartment

Expats typically live in either an apartment/condominium or a landed house. This is a matter of preference and budget. Typical condominiums in Singapore have multitude of facilities - e.g. swimming pool, gym, tennis courts, children playground, and BBQ pits. And they are usually within a walled compound with security guards around, although Singapore is not a dangerous place at all. Because the plot sizes are relatively small in Singapore, only the very luxurious landed properties have pools and other facilities. For somebody moving from a colder climate, you have to also remember that Singapore is in the tropics and there are more small animals (insects, geckos) around than you may be used to. These tend to cause more problems in landed properties, especially close to green areas. But if you have the budget, there are some very nice bungalows to live in that will give you the luxury and privacy that a condominium would not be able to do.

Transportation

Singapore has one of the most modern and best functioning transportation systems in the world, and travelling from any point in the island to another does not take very long in normal conditions. Car ownership can be expensive in Singapore, but on the other hand the roads are good and less congested than in many other cities of similar population density. Public transportation is also very good, but tends to be more concentrated in areas where the Singaporeans live (close to HDB estates). In any case, unless you really live at the edge of Singapore, your commuting time would rarely exceed one hour.

Your main options for moving around are described below

Mass Rapid Transport (MRT)

MRT, Singapore’s metro/underground system, currently has 3 lines (4th being built currently). Our map search shows the location of MRT stations in Singapore. We will also give you details of the distance to the closest MRT station for each listing.

Map of Singapore’s MRT links

Bus

Singapore also has extensive bus network that covers much larger area than MRT. You can find bus routes here. It's not possible to show the entire bus map on a single map however you can find details athttp://sbs.streetdirectory.com.sg/sbs/sbsindexsn.jsp?map=1

Taxis

Taxis are generally plentiful and cheap compared to many other countries. This would probably be the transport of choice for most single professionals living close to the city centre. Sometimes it can be difficult to get one during peak hours, and extra charges apply for calling one and during peak hours.

Private Cars

Owning a private car is expensive relative to many other countries and is not really necessary in Singapore. Most people would save money by using taxi rather than owning a car. However, owning a car gives you freedom to move around - and popping to Malaysia every now and then to have a round of golf might be a big enough reason to get one.

Traffic conditions are generally good in Singapore. But be aware of all the charges that you have to pay when owning a car:

Purchase price – Cars are probably one of the most expensive in the world to buy in Singapore due to import duties and Certificate of Entitlement (COE – a permission to own a car for 10 years, after which it has to be renewed).
Road tax – depending on the size of the engine, you need to pay road tax every year. This can vary from a few hundred for a small car to thousands for an SUV.
Electronic Road Pricing (ERP) – during peak hours you have to pay fees (S$0.50 to a few dollars) to enter through certain roads and areas (mostly in central area). ERP locations can be found atwww.lta.gov.sg/motoring_matters/motoring_erp_location_cbd.htm
Parking – parking may or may not be offered for free at your office. Especially, in CBD it can be quite expensive. Also, typically you would have to pay for parking in most locations when out in town. Condominiums usually have parking included in the maintenance fee (which is paid by the landlord).
Petrol – it may come as a surprise, but petrol is probably the smallest component of you car ownership costs. It is currently around S$1.80 / litre.

You will also need to convert your driver's license into Singaporean once within a year. This is relatively straightforward process, but will require you to sit the basic theory test. The road traffic in Singapore is on the left side of the road (as in UK and Malaysia).

International Schools in Singapore

There are many international schools in Singapore to cater for the needs of expatriates. For most large groups of expatriates, you have a choice of sending your children to a school which follow your national curriculum and teaching is in your native language. These are the main international schools in Singapore – please check their websites for more information.

Australian International School

1 Lorong Chuan, Singapore 556818

http://www.ais.com.sg/

Bhavan's Indian International School

11 Mt Sophia Blk E, Singapore 228461

http://www.biissingapore.org/

Canadian International School

5 Toh Tuck Road, Singapore 596679

http://www.cis.edu.sg/

Chatsworth International School

37 Emerald Hill Road, Singapore 229313

http://www.chatsworth-international.com/

Dover Court Preparatory School

301 Dover Road, Singapore 139644

http://www.dovercourt.edu.sg/

DPS International School

36 Aroozoo Avenue, Singapore 539842

http://www.dps.com.sg/

EtonHouse International School

51 Broadrick Road, Singapore 439501

http://www.etonhouse.com.sg/

German School

72 Bukit Tinggi Road, Singapore 289760

http://www.gess.sg/

Hollandse School

65 Bukit Tinggi Road, Singapore 289757

http://www.hollandseschool.org/

International Community School

514 Kampong Bahru, Singapore 099450

http://www.ics.edu.sg/

ISS International School

21 Preston Road, Singapore 109355

http://www.iss.edu.sg/

Japanese Kindergarten

251 West Coast Road, Singapore 127390

Japanese School (Primary)

95 Clementi Road, Singapore 129782 (Clementi Campus)

11 Upper Changi Road North, Singapore 507657 (Changi Campus)

http://www.sjs.edu.sg/

Japanese School (Secondary)

201 West Coast Road, Singapore 127383

http://www.sjs.edu.sg/

KGS International Pre-School (Japanese)

16 Ramsgate Road, Singapore 437462

http://pachome1.pacific.net.sg/~yoko/kinder/kgs.html

Lock Road Kindergarten

10 Lock Road, Singapore 108938

Lycee Francais De Singapour

3000 Ang Mo Kio Ave 3, Singapore 569928

http://www.lyceefrancais.edu.sg/

Norwegian Supplementary School

c/o Royal Norwegian Embassy, 16 Raffles Quay #44-01 Hong Leong Bldg, S048581Tel:

Overseas Family School

25F Paterson Road, Singapore 238515

http://www.ofs.edu.sg/

Rosemount Kindergarten

25 Ettrick Terrace, Singapore 458588

http://www.rosemount.com.sg/

Rosemount International School

461 Telok Blangah Road, Singapore 109022

http://www.rosemount.com.sg/

Sekolah Indonesia

20A Siglap Road, Singapore 455859

Singapore American School

40 Woodlands Street 41, Singapore 738547

http://www.sas.edu.sg/

Singapore Korean School

74 Lim Ah Woo Road, Singapore 438134

http://www.koreansingapore.org/

Swedish Supplementary Education School

c/o Swedish Embassy, 111 Somerset Road #05-01 Singapore Power Building,

Singapore 238164

Swiss School

38 Swiss Club Road, Singapore 288140

http://www.swiss-school.edu.sg/

Tanglin Trust School

95 Portsdown Road, Singapore 139299

http://www.tts.edu.sg/

United World College of South East Asia

1207 Dover Road, Singapore 139654

http://www.uwcsea.edu.sg/

Waseda Shibuya Senior High School

57 West Coast Road, Singapore 127366

http://www.waseda-shibuya.edu.sg/

We have provided some other useful websites for schooling matters:

Directory of Local Schools - www1.moe.edu.sg/schdiv/
Studying in Public Schools - www.croxxing.com/english/info_overview.html
Fee Structure Public Schools - www.croxxing.com/english/info_fees.html
Ministry of Education - www.moe.edu.sg/
Foreign Student Information - www.moe.gov.sg/esp/foreign/ andwww.moe.gov.sg/csc/csc_admission.htm#Foreign
Foreign Student Admission Application Form - www.moe.gov.sg/esp/foreign/FSApplForm.pdf
CQT Application Form - www.moe.gov.sg/esp/foreign/CQTForm.pdf
Advice for Expatriates to Place Children in Local Schools - www.moe.gov.sg/esp/eduinfo/
School Terms and Holidays - www.moe.edu.sg/schapp/frames3.htm