Invest in a Freehold condo in Singapore

Freehold condo in Singapore

The Singaporean real estate market has in the past developed to phenomenal heights. Today, condominiums are arguably the best selling housing units. Discover the reasons why condos are so popular and why you should invest in one. Similarly, differentiate between various types of condominiums, and then take advantage of the benefits involved.

東京湾岸エリア高層タワーマンション群と(有明・東雲・豊洲)2020年東京オリンピック 有明アリーナ建設予定地を望む。

What a condominium is

Unlike buying a piece of land and putting up a house, you can buy a finished unit and make it your home. Condominiums are usually apartment houses constructed by condominium companies and sold to individuals.

When you buy one, you will receive a title for it and have the right to sell or rent it to a third party. In addition, you assume joint ownership of common facilities such as passageways and walkways.

Most preferred housing units

Condominiums are one of the most preferred housing styles in Singapore because they are affordable. Since most owners are middle-level income earners, they do not have a lot of money to spend on housing. Even with not-so-affluent earnings, they need a decent place where they can call home. This makes condominiums a perfect alternative.

In Singapore, condominiums are built in a relatively comfortable size for the conventional family. You can choose the number of bedrooms you want in your unit. Similarly, you have the freedom in deciding how your unit looks like. This includes the installations, interior designs, and your preferred storey.

Reasons for popularity

Whether it is a freehold condo or a regular condo, you will achieve unrivalled number of benefits as compared to other types of housing. In fact, some people buy condos because of the sense of community that they bring.

The fact that you have your own privacy and can still hear or see your neighbors is itself an advantage. Some large-scale companies are known to construct hundreds of similar condos. The only drawback is the fact that your condo looks like a hundred others built by the same company! But that is not a real issue! After all, most of these houses are built near social amenities such as malls, schools, hospitals, and shopping centres.

buying a freehold condo in singapore

Difference between freehold and regular condominiums

As an owner of a freehold condo, you have title to the unit, plus the land on which the apartment is built. This means you can develop the lawns, walkways, and backyards. On the other hand, you only own a regular condominium, but not the land on which it stands. Similarly, you do not have much say on what the lawns, and compounds look like.

As you seek to own the land and the freehold condo, the overall cost may be higher than the cost involved in buying a regular condominium. Similarly, the process of purchasing a freehold condo may be longer than the duration of buying a regular condominium.

However, it is better to incur a one-off cost and enjoy unrivalled benefits to your freehold condo. As time goes by, the value of your land will increase, and so does the value of your condo. Additionally, you have freedom to put up other structures on the land surrounding the apartment building.

Disadvantages

Both types of condos have their own advantages as well as disadvantages. While the regular condo is cheap and fast to purchase, you have limited freedom to the use and alterations of common installations. In fact, the condo company retains conditional control over what you can or cannot do with the property.

One disadvantage of the freehold condo is that you bear the cost of improving it alone. Unlike ordinary condos where owners share the cost of refurbishing common facilities, you will solely be responsible for repainting, repair of broken fences, installation of security lights, and other furnishings.

Similarly, condo corporations in Singapore require that owners of individual units share the responsibility of maintaining the playgrounds, parking and security. On the other hand, you have the responsibility of proper upkeep to the above facilities of a freehold condo.

Conclusion

As both types of condominiums have benefits and drawbacks, it is upon you to decide which one to invest in. Whatever you do, do your homework properly, and outline your priorities. Next, do a thorough search for the type of condo that you and your family genuinely require.

Compare the features of various units, their location, and amenities near them. When you go to buy, do not rush. In fact, be prepared to go back home without a deal. Think it over and make an informed decision. More importantly, ensure you get proper title for your condo.

Steps to Owning a Condominium in Singapore

  1. Appoint a Real Estate Agent

The first step in acquiring a condominium in Singapore is to appoint a real estate agent. Such an individual should be competent and possess refined expertise of buying and selling property. It is advisable to utilize one agent for each transaction. Majority of agents in the country share their portfolio and appointing more than one representative could therefore occasion embarrassing situations. Openly tell your agent what kind of property you seek, including dimensions, price and location. Issuing clear instructions enables the professional offer quick and accurate directions of your ideal residence. In addition, this individual could function as a consultant in case you require financial and legal advice for conducting purchases.

  1. Select a Particular Property 

The housing agent can seek for a living space which suits your exact requirements. After narrowing down the shortlist, expect to get an invitation for viewing the property. As you inspect it, do pay attention to fixtures, furnishings and other special features of interest. Do not hesitate negotiating for price and renovation. Investing in real estate is a long-term undertaking and it is critical to get totally satisfied with a given unit prior to purchasing it.

  1. Option/Offer to Purchase

After setting eyes on some property, prepare 1 percent of purchase price, this being consideration in exchange for Option to Purchase from Seller. A 14-day period will then follow within which to decide upon whether to acquire the condominium in Singapore. Exercise your option by signing it then forwarding it to seller’s solicitor along with another amount of between 4 percent and 9 percent of purchase cost. Alternatively, you may request your solicitor or agent to draft an Offer of Purchase clearly indicating the price and corresponding terms and conditions. Majority of agents in Singapore refer clients to reputable solicitors if requested.

  1. Complete the Transaction  

Allow your solicitor to handle the transaction, which should be performed in-between 8 and 10 weeks. This is accomplished by lodging caveat on the targeted condominium in Singapore and if necessary, coordinating with financial institutions. You may inspect property for the last time before completing sale by seeking permission for this action within your Option to Purchase. You ought to check property furnishings and items which seller has consented to sell off along with unit. A stamp duty worth 3 percent of purchase price requires being paid to Singapore Inland Revenue Authority if it exceeds $300,000. This takes place within the 14-day period following signing of Sales and Purchase or Option to Purchase Agreement. The seller offsets the agency commission that varies in-between 1 and 2 percent of purchase price. However, you require bearing the legal cost in such case and pay a $3,000 one-off fee to your solicitor for each transaction.

  1. Make Application for Bank Loan

You may secure funding on loan from a bank in Singapore for up to 80 percent maximum cost of purchase price. Take note that such a figure is subject to valuation of property by lenders. Majority of foreign borrowers could secure loans reaching 70 percent of purchase cost. Singaporean Banks are known well for having competitive interest rates of lending, currently lying in-between 3.5 and 4 percent. This figure is however appreciably lower in comparison to the rate offered by fellow regional cities like Hong Kong that offers a 6.5 percent prime lending rate.

  1. File for Property Tax  

It is important doing annual filing of property tax once you gain ownership of a condominium in Singapore. The amount payable gets calculated by multiplying annual property value with tax rate. The annual value (AV) is equivalent to estimated annual rent of the real estate acquisition. Tax rate is generally 10 percent on annual basis, but those who themselves occupy such property could apply for a 4 percent concessionary rate.

  1. Let out Your Property

If buying a condominium in Singapore for investment purposes, do factor in its rental yield. Your agent ought to furnish you with close estimates of the monthly rental expected from the purchase. Prime locations such as Districts 9, 10 as well as 11 typically yield the most lucrative rental yields, owing to great demand and desirability. The Singaporean Inland Revenue Authority levies tax on rental, which it treats as part of your income. Foreigners who are unemployed or lack a long stay pass pay a tax of 20 percent, but the charges a much lower for those with valid documents of employment.

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Importance of Condo near MRT

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When looking for a property to buy or rent in Singapore, the best option is to go for a condo near MRT. The MRT Has 18 stations and transports over 150,000 passengers each day.Trains are available always and they connect to the sky train. Taking a train is cheaper than any other form of transport.Therefore, a condo near MRT will save you a lot of transport costs and will put you at the center of all essential social amenities such as hospitals, schools and shopping malls.

If you are not intending to live in the condo you can see it as an investment since its value is likely to increase. Other benefits include the ability to enjoy a great night out and it is easy to run errands for those who do not own cars.Condo near MRT may have some shortcomings such as noise coming from the railway activities although you can eventually learn to live with it. Also, the prices can be very expensive at times beyond one’s budget. Though interested buyers who want value for their money should overlook such shortcomings as they are bound to gain from it. You can start with a small unit, sell it when its value goes up and then move to a bigger unit
In order to avoid buying a condo at high prices, you should go for it while it is still under construction or when it is about to be completed. This is because prices usually go up once the condos are completely finished as there are numerous buyers and investors interested and ready to give any amount of money.It is important that when looking for a condo, one should do extensive research on the areas that will be most suitable for them in order to avoid being inconvenienced.

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Better Investment Options With New Condo Launches

東京湾岸エリア高層タワーマンション群と(有明・東雲・豊洲)2020年東京オリンピック 有明アリーナ建設予定地を望む。

Most citizens of Singapore are tired of paying rent, and can hardly get the money to afford homes in an estate or individual land. This is the reason why the new condo launch Singapore solutions have come in handy to aid the middle-class and those who want to get new homes. Getting property is a big achievement especially when you have been paying rent for a long time. This is the reason why it is important for one to start investing early when it comes to the condos. There are different sets and units, which are currently in the market, all going for affordable rates. Besides getting the home, one needs to ensure it has some of the basic facilities, which will aid them to get the best result. This will include security, parking, high quality finish, and creative development of units. Once you have verified the condo meets your need, the next step is starting to process payments for full ownership of the unit.

New condo launch Singapore makes it easier for potential buyers to get the sole needs. However, some do not know the main aim and functionalities the condos do offer. Just like apartments, condos have the same rules but in this case, you do not pay rent, since you have full ownership of the property. You will need to pay for regular servicing and other charges, which include cleanliness, security, and maintenance. You will have to live in good relations with your neighbor since you share the same facilities. This is the reason why many choose to invest in condos, since you get to live with other people in a community, but you have your privacy and freedom.

New Punggol Condominiums have become very popular with many people willing to buy them. This is because they meet the latest needs of the clients. It is not easy to get apartments or condos that fit your needs. However, with the sudden interest of condos from the citizens, most developers have found it appealing to develop something, which clients will enjoy. This includes personalization, using latest furnishes and decorations, and providing the essentials. You will have all the facilities you need at immensely affordable rates.

With the New Punggol Condominiums, you get to benefit from a fully fitted kitchen, furnished rooms, master bedroom, home gym, balcony, and large windows, which give an appealing view of the town. Other facilities include a relaxation court outside, parking, swimming pool and tennis court. Those who want to invest in condos need to make payments or organize with financing institutions to get the best results. With the increase and demand of condos, most developers have found it necessary to come up with tailored needs to satisfy clients.

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