Condo comes with a hefty price tag. With this, you have to put careful thought before buying. Whether it is your first time or not, there are many things to consider. The right people will make the journey less overwhelming. You need to find a real estate agent first. To be sure, you can go through the CEA (Council of Estate Agents). This is the governing body for all property agents here in Singapore.
You also need a lawyer so you will have legal guidance. If you consider a bank loan, the bank will usually assign a lawyer to you. If in this case, you choose a new development in Upper Bukit Timah, which is the Mayfair Modern King Albert Park, you have to understand the fees it entails. It is critical that you get your finances sorted. This means that you need to evaluate how much you can actually afford to pay for your home.
Keep in mind that newer condos have a smaller area compared to four-room HDB flats. If this is fine for you, it is time that you consider a brand new condo or you can check new launches. If you want to have more space, you can consider an older resale condo. These units are easy to find. After deciding, here are the fees that you should expect:
As soon as you picked a property, you can “hold” the unit for at least two weeks. This is to keep other buyers from viewing the unit. This is called the first option fee, which entails 1% of the agreed price. You need to secure your financing within the given time. You need to pay a second option fee of 4% so the first option fee is not forfeited.
After paying the second option fee, you are required a down payment fee of 15% (if it is your first property) or 25% (if it is your second property). This can be paid using a combination of CPF (Central Provident Fund) and cash.
Loan from the bank
The bank will loan the rest to you. The bank will allow you a loanable amount of 75% (if it is your first property and the loan tenure is more than 30 years) or 45% (if it is your second and the loan tenure is more than 30 years) of the condo price. This is known as LTV (Loan to Value) limit.
You have to know about the BSD (Buyer’s Stamp Duty). This is a compulsory fee. This entails 1% stamp duty on the first SGD 180,000, 2% on the next SGD 180,000 and 3% on the remainder of the house price. If you are buying your second house, you are required to pay 12% ABSD (Additional Buyer Stamp Duty).
For legal fees, aside from paying the lawyer, you need to pay the SLA (Singapore Land Authority) and IRAS (Inland Revenue Authority of Singapore) for mortgage duty. Legal fees will come to a minimum of SGD 2,500.
Now that you are aware of the fees, you won’t be surprised or you won’t complain when you encounter it.