If the American Dream is a white picket fence, 2.5 children, and a dog, the Singapore Dream is to own your own home.
Singapore may be the world’s ninth most expensive city, but most Singaporeans can still afford to own a home because of comprehensive government measures such as market regulation and financial subsidies – the homeownership rate in Singapore in 2019 was 90.4 percent.
What kinds of properties may a Singaporean purchase in the city-state?
In Singapore, there are three basic types of properties:
- HDB flats
- Private residences
- Executive Condominiums (ECs)
You must be a Singapore Citizen or a Permanent Resident to purchase an HDB unit (PR).
Singapore citizens and PRs can own any sort of private property (including apartments and landed bungalows) as well as ECs, but there are some limits on HDB flat ownership.
What is the cost of purchasing a home in Singapore?
The cost of a home in Singapore is determined by several factors, including the estate’s maturity, proximity to amenities, the type and age of the property, and the unit’s condition. In 2018, the average price of a home in Singapore was US$874,372 (about S$1,183,025).
It’s crucial to remember that, in addition to the property’s purchase price, there are other costs associated with being a homeowner. Legal and stamp duties, maintenance fees (conservancy fees), home insurance, and other costs are examples.
How much can I borrow for a house purchase loan?
You can apply for an HDB Concessionary Loan if you are purchasing an HDB flat. For HDB housing loans, the loan-to-value (LTV) limit is up to 90% of the property value or selling price, whichever is lower. The remaining 10% downpayment can be paid in cash or using your CPF funds.
You have the option of taking out a private bank loan to purchase an HDB flat. Private bank loans have a maximum LTV of up to 75% of the property value or selling price, whichever is lower. The remaining 25% is split into two parts: a 20% cash component that can be paid using cash or CPF savings, and a mandatory cash component of at least 5%.
If you’re thinking about getting a home loan, use a financial comparison tool like SingSaver to find the best home loan rates.
Is it possible for me to own many properties in Singapore?
As a Singapore citizen or PR, there is no restriction to the number of private properties you can own.
HDB residents who want to buy private property must first live in the building for at least five years. This means that if you wish to own both an HDB unit and a private property, you must first buy an HDB flat and live in it for at least 5 years before making a private property investment (local or overseas).
It’s worth noting that you can only own one HDB flat. If you buy a second HDB flat, you must sell the first one within six months of the second one.