There are different reasons as to why you, a foreigner, will be buying a property in Singapore. You could be planning on living in Singapore or are interested in property investment. International real estate or overseas property is one way for investors to accumulate their fortune over time. That is why in this article you will be provided a step by step guideline.
1.Check if you are permitted to purchase a property
The Residential Property Act of 1973 regulates foreign ownership of land and housing. Applicable to anyone who is not a Singaporean citizen, the act details certain lands that are restricted to foreign investors, which include:
vacant land intended for residential use
landed property such as bungalows, terrace houses, semi-detached houses
property in housing developments that are not officially classified as approved condominiums
Condominiums or apartments in smaller buildings can also be bought on the private market. However, before purchasing a property in Singapore, InterNations details that one may need to “apply for permission with the Lands Dealing Approval Unit.”
2. Contact a Property Agent
The property agent will be your representative throughout the entire process of buying. Since most agents share the same portfolio, it is best to stay with one agent to avoid confusion. Be clear and direct to your agent about the property you are looking for.
3. Decide on the property you want to purchase
You will be given a list of properties that suits your needs and once you have narrowed them down, you will be invited to view the property. Make sure to inspect the property carefully for you to be able to negotiate the renovation and price.
4. Option to purchase
Once you have decided on the property you would like to buy, prepare 1% of the purchase price as consideration in exchange for the Option to Purchase from the seller. You will be given 14 days to decide if you will push through with the purchase or not. If you do decide to purchase the property, you will sign and forward it to the seller’s solicitor together with another 4% or 9% of the purchasing price.
5.Complete the transaction
Once you have signed the Sales and Purchase Agreement all you have to do is wait for your solicitor to complete the sale in 8 to 10 weeks.
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