Prior to your purchase of a residential estate in Singapore, it would surely help a lot that you examine the endeavor first prior to jumping on it. For the last couple of years, the real estate industry in Singapore has gone through a drastic amount of change. This is true as far as the regulations are concerned. Basically, these are the rules involved in governing every transaction in the residential property in Singapore. This occurs because of the rapid surge that is going on with the prices of the property. This has turned out to be the major concern of most buyers out there.
The Latest Regulations
Here are some of the new regulations in the real estate industry of Singapore:
- Loans – it was claimed that the Government has reduced the LTV or the Loan-To-Value to almost 80% from 90%. However, there might be a change – if the buyer comes with an existing home loan in the place, the next loan must be utilized for the residential property which is typically capped at 60%. This may discourage anyone who is out of money or budget.
- Foreigners – this group is most likely to feel the new regulations so much because they are now asked to settle an additional buyer stamp duty which amounts to 10% which is now added to the existing 3%. This said the measure has affected the foreign investor interest so much. As a matter of fact, this will continue to be as such because the market still stabilizes as of the moment. On the brighter side though, investors which are originally from other countries would definitely find the tax privileges enjoyable. They are even at par with that of Singaporeans.
- Corporate Entities – Any non-individual entity who purchases a property may be subject to the 10% additional buyer stamp duty. Aside from this, the LTV or the Loan-To-Value may be capped at around 50%. This is why financing in here turns out to be a way challenging venture to be a part of.
- Permanent Residents – Most home buyers in the category are going to be pleased because they may have to note that it is actually their very first property. When it comes to this situation, the sole buyer stamp duty that has to be paid will go about 3%. But then, when a 2nd property is bought, the buyer can expect an additional 3% which is going to be levied on top of the buyer stamp duty of the prevailing purchaser.
- Singaporeans – Well, this group is most likely to feel the effects but this does not mean that they are exempted of course. Basically, the purchaser in this category will be eligible for buying two properties which may be under the normal stamp of 2%. Basically, the additional 3% would have to be settled by the third purchaser of the property, if that is even applicable.
Needless to say, the measures are dubbed to be successful when it comes to weeding out most speculators out there who are set to drive up the prices of property in Singapore. These have to be noted.