Real Estate

Rules and Regulations in Pasir Ris 8 Condo

Before you buy your first residential property in Singapore, you may want to learn a bit more before you sign on the dotted line. In the last few years the Singapore property scene has witnessed drastic changes to the regulations governing transactions in residential property. This was mainly because of the rapid surge in land prices in this period, which caused a significant concern to home buyers on the market. Listed below are the current regulations in place.

 Loans

So as to dissuade buyers from speculating in land, the Government Has reduced the first 90 percent Loan-To-Value LTV to the present 80 percent LTV. However if the purchaser has an existing home loan in place, another loan used for a Pasir Ris 8 Condo residential property will be capped at 60 percent LTV. This step severely cripples the speculator who’s merely out to make a fast buck from leveraging on the banks.

Pasir Ris 8 Condo

 For Foreigners

Possibly the group worst hit by the new regulations, foreigners are now Required to pay another buyer’s stamp duty of 10 percent in addition to the prevailing 3%. This step has seriously dampened foreign investor interest in and will probably continue to be in force until the market stabilizes. However on the other hand, investors from these countries would enjoy tax statements on the very same conditions as Singaporeans: USA, Switzerland, Norway, Liechtenstein and Iceland.

 For Corporate Entities

Non-individual entities who buy property are also subject to the Additional 10 percent buyer’s stamp duty. Moreover, their loan-to-value is capped at 50% that makes financing the property a lot more challenging.

 For Permanent Residents

Home buyers in this class will be pleased to note that due to their Initial property, just the buyer stamp duty of 3% is payable. However, upon buying their 2nd property, an additional 3 percent will be levied in addition to the prevailing buyer stamp duty.

 For Singaporeans

As the group least influenced by the new measures, the buyers in this Category are entitled to purchase 2 properties under the standard stamp duty of 3%. The additional 3% will be payable upon their purchase of the next house. The steps are a success at weeding out the speculators who have been driving up the property prices in Singapore.  It is interesting to note however, that property prices are held at a steady level for the last year since 2011. This comes as welcome news for investors that have been raising their property portfolios to prepare themselves for another 5-10 years.