The Singapore Real Estate Market maintains one of the most promising within the Asian market. Considering that Singapore is a financial hub for all of Asia – there is definitely strategic value in owning property on the Island State.
To answer the question on whether a foreigner can buy a house in Singapore – the answer is no, not for the average investor. Landed houses are only available to locals and permanent residents (subject to approval by the government). There are special circumstances where foreigners may obtain government permission – but these are extremely rare and require a significant measure of wealth and who make substantial contributions to the Singapore Economy.
However, this doesn’t mean that foreigners can’t invest in Singapore Real Estate. Thus, for the foreigner interested in investing let’s take a closer look at the optimal property to own in Singapore as a foreigner?
First – we’ll have to ask a few questions.
- Should I rather invest in commercial property to expand my investment portfolio?
- What are the specific limitations that foreigners have when it comes to buying property in Singapore?
In order to answer any of these questions, we have to first identify your purpose for buying property in Singapore.
What are the main reasons why a foreigner would buy property in Singapore?
Not all foreigners are investors. Some foreigners are moving to Singapore in order to retire – whereas others are using Singapore as a financial HQ for their business ventures. Others still simply wish to take advantage of the stable real estate market that Singapore has to offer.
If you are considering buying property in Singapore, understanding your motivation will help shape the parameters allowing you to find the optimal property investment.
Once we have established the “search parameters”, we can move onto the next phase of this process.
Finding a Reputable Singapore Real Estate Agent
As a foreigner – we recommend that you entrust all of your property investment in Singapore to an experienced Realtor. Having a local expert on your team will only count in your favor. You’ll have someone who knows the market, the people and where to find investment opportunities working on your behalf.
Knowing how to navigate regulations and identify worthwhile investment opportunities. There are plenty of properties still viable for foreign investment.
It’s for this reason that we strongly recommend finding a local real estate agent to assist you with these endeavors, not only to simplify your life, but also to comply with government regulations.
What properties will best suit your purpose?
In most cases – foreigners are advised to buy new launch condos in Singapore because it’s simply the easiest and most secure way to get your foot in the door. New Launch Condos are appealing for several reasons including;
- You are the first owner
- Buying in development stages provides financial incentives [Early Bird Discounts]
- Buying directly from the developer
- New Facility and Features
- Lower Maintenance Costs
- Wider Range of Units
However – if you’re planning on retiring in Singapore, New Launch Condos may not be the best option if you do not have the intention to wait for a couple of years for completion. Perhaps, buying something that is on the resale market will make more sense.
Either way, Jimmy-Sum has plenty of New launch condos available for anyone interested in buying property in Singapore. If you do decide that New Launch Condos are the best viable option, we can definitely help you track down the right property for your needs.
Resale Properties
Buying a New Launch Condo has plenty of benefits – having the unit available immediately is not one of them. If time is of the essence, we recommend that you look into Resale Properties. With these properties you’ll be buying directly from the property owner and not a developer.
It makes sense to buy resale properties when;
- You want to expand your investment portfolio
- You’re looking to buy-to-rent
- You want to live on the property within the next couple of months’ time
If you’re considering buying a resale property – we recommend having an experienced realtor on your side. You’ll need to take a look at specific issues with the property like;
- Damages to the property
- Proximity to external noises, traffic, etc.
- The age and valuation of the property
- Whether all legal documents are in order
If you don’t have an experienced realtor in your corner – you could end up spending more on a property. It’s always best to have someone looking out for your best interests on your side.
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Here at Jimmy-Sum, we believe that the best options for foreigners looking to expand their property portfolio into the Singapore Real Estate Market – a new launch condo is still the best bet. Nonetheless, resale properties do provide value for those who wish to settle down in Singapore. Irrespective of your decision – Jimmy-Sum can assist you.
Commercial Properties
While this type of property diverts from the main premise of this article – we thought we’d include it if you’re an investor looking to expand your portfolio. Commercial Properties are largely favorable investment options with far fewer limitations than residential properties.
If you’re looking for commercial properties in Singapore – reach out to us and we’ll help you find the right investment opportunity in Singapore right now.
What do you need to buy a property in Singapore as a Foreigner?
Mini Guide to buying a house in Singapore
The following section can get complicated for someone who isn’t familiar with the Real Estate market of Singapore. Below we’ll be going through a simplified version of the buying process for foreigners.
- Find a local agent – You don’t want to go through the property-buying-process yourself. Reach out to a trusted Realtor to assist you with the process.
- Decide your mortgage – you need to take a look at your budget and decide on a mortgage that suits you.
- Find the right property – this will be heavily dependent on your purpose for owning property in Singapore.
- Make an offer – you’ll make an offer on the property, or a counter offer in the case that a starting price has been established. Once the seller agrees.
- Finalize Mortgage rates – at the bank, once the intent of purchase has been made, the final mortgages can be established.
- Pay the option fee – An option fee of 1% for resale property while 5% option fee for new condo launch.
- Pay the exercise fee – you’ll have 14 days from the moment you do the purchase agreement to exercise your right to buy the property for resale property and you have up to 3 weeks for new condo launch.
- Lawyer prepares and files paperwork – this includes things like, “transferring titles”, “legal documentation” and so forth.
Finally – depending on whether you have a new launch condo or a resale property – you’ll either be able to occupy the property within the next 12 weeks or will have to wait until development concludes.
Find your ideal property today!
At jimmy-Sum, we pride ourselves in empowering our customers with their choice in premium properties in Singapore. We have helped hundreds of clients find the property of their dreams, and have experience in helping foreigners buying a house in Singapore.
Whether you’re looking for a place to retire or to expand your portfolio – look no further than Jimmy- Sum
