Home Financing Bank Loan and Mortgages in Singapore
Do I quailfy for a Singapore dollar housing loan if I am a foreigner?
Unless you are a Permanent Resident, you are entitled to one Singapore dollar housing loan.
What are the ways for me to finance a property purchase?
There are several ways for you to finance your purchases. Basically, you can either use your CPF and/or loan from commercial banks/finance companies. Often, a combination of different types of loans and savings from your CPF is used. From 19 July 2005, the maximum housing loan for private properties and HDB flats should not exceed 90% of the purchase price or valuation of the property, whichever is lower.
What are the key factors that will affect my housing loan application?
Since the main concern for banks would be whether the borrower would have money coming in the future date to repay a loan, your bank will usually examine the current market value of the property (if any); your income; your employment history; your assets and liabilities; the total equity which you are committing to the property, and your age.
What are the charges in taking a bank loan?
Each Bank has its own set of charges, but generally the following applies:
Processing fee: for processing a loan application
Pre-payment fee: for repaying part of or the full loan ahead of schedule
Third-part charges: for the valuation fee, legal fee (including the fee for the lawyer to act behalf of the bank), stamp duty, and insurance
Others: Some banks also charge for making changes to the original loan application or for canceling a loan offer after you have accepted it.
Is there any other loan that will help me to pay for the down payment of a property?
Yes, you may use a bridging loan, which is a short-term loan designed to tide the borrower over a period when he needs cash. However, because bridging loans are usually available for those taking up a housing loan from the same bank. Some people also use this type of loan while waiting for the release of his CPF funds.
What are the documents I need to produce a housing loan?
Most financial institutions require the following items:
Latest CPF statement for CPF withdrawn under the Residential Property Scheme (for refinancing loans)
Tenancy agreement (if any)
Latest 6 months to 2 years housing loan statements from current financier (for refinancing loans)
Latest income tax Notice of Assessment/ last 3 moths pay slips or the Notice of Tax Assessment for those self-employed
Latest CPF statement of account
Option to purchase (if any)
When should I repay the full bridging loan?
You have to do so upon completing the transaction of purchasing the property (usually 3 months), subject to a maximum of 6 months.
How is the bridging loan interest calculated?
It is calculated on a day to day basis and is payable every month.
Is there any type of loan available for me to rebuild my bungalow?
You can apply for a reconstruction loan.
Can I use an overdraft to rebuild my bungalow?
You can use an overdraft to rebuild your property, but a reconstruction loan has a lower interest rate, and you only need to pay for the interest rates on the amount you have used.
Should I refinance my property with another bank with much lower interest rates?
It all depends. This is because you must take into account the pre-payment penalties involved in redeeming your mortgage earlier than the maturity date. Therefore, you have to compare the monthly installments offered by each bank and include the penalties for terminating the original loan. Also, it would be not be sensible to refinance at the end of a loan period since the interest gain in the new bank would be minimal.
Can I redeem my mortgage?
It may be redeemed any time, however, but you may have to pay a fee for early redemption. The fee is known as the pre-payment penalty, and is based on the mortgage loan amount or outstanding amount.
How can I redeem my mortgage?
You may do so by giving a notice of redemption to your Bank. Your lawyer will prepare a "total discharge of mortgage". He will then arrange with the Bank's lawyer to execute the Total Discharge of Mortgage, and register it at the Registry of Land Titles. You then pay off the mortgage loan in exchange for the signed "total discharge of mortgage" or "deed of reassignment".
What happens if I default on my mortgage loan?
The following are the actions the Bank can take:
Sell your property to recover the money lent to you;
Appoint a receiver, that is to appoint a person to take charge of the property if the bank wishes to obtain rents from your property;
Insure your property against fire and other fortuitous accidents, and
Refuse to allow you to redeem the mortgage of another property if you have mortgaged more than one property.
Can I sue the Bank if my property which I defaulted on the mortgage loan is sold at a very low price?
Unless you can prove that the Bank has acted carelessly or recklessly in selling your property at a much lower price that what the market is willing to pay, the Court will not interfere.
After the Bank sells my house, will I be entitled to any money?
Yes, provided that there is any left after the Bank recovers the money lent to you, including all other expenses in selling your house.
If the bank's lawyers delayed their preparation of a mortgage which consequently required me to pay interest to the Seller, what should I do?
Unfortunately you will not have any course of action against the bank since the bank does not bind itself to you to provide the loan before the completion date. The bank's lawyers also do not represent you, therefore you will also have no recourse against them.
While awaiting for my Permanent Resident pass, I am buying a house with my sister who is a Singaporean. Will we be able to obtain a Singapore dollar loan from banks?
Each bank has its own loan criteria. Generally, banks are able to grant you a loan for Singapore citizens, if your immediate family members meet their required age and income.
If I am a Permanent Resident getting a home loan, how can I obtain a home loan?
To obtain a Singapore dollar loan, you have to provide:
a written undertaking that you do not have outstanding housing loans from any other financial institutions in Singapore
you are buying the property for owner-occupation
Showing posts with label Singapore Property FAQ. Show all posts
Showing posts with label Singapore Property FAQ. Show all posts
Thursday, November 6, 2008
Home Insurance policies in Singapore
Home Insurance policies in Singapore
Is home insurance policy compulsory?
If you are taking out a mortgage with a bank, then you must have the fire insurance policy for your home. Some banks are offering this policy free for the first year if you take out a mortgage with them.
What are the types of home insurance policies available for private properties?
There are two main types of policies: a standard fire policy that covers losses caused by fire, lightning and explosion; and a home insurance policy that covers destruction to a building, home contents and any renovations carried out.
Which policy should I buy?
The decision to buy an insurance policy for your home is similar to buying a life insurance policy. You have to consider your budget, and your exposure to risks in your daily activities. If your estate is prone to vandalism, burglary then you should include these items as contents to insure against.
What are covered under the home insurance policy?
In addition to the damages caused by fire, explosions and lightening, the home insurance policy also covers against fire, flood, burglary, vandalism and damage by vehicles, aircraft and other aerial devices.
What are covered under the fire insurance policies?
They cover damages caused by fire, explosions and lightning.
What should I look for in the policies?
Items covered : Does the policy cover personal accident and liability, loss or damage to valuables outside the home premises, in addition to the building, renovation and home contents.
First loss or average clause : Does the policy cover the full or only a percentage of the loss if you have under-insured your property? First Loss Policies are policies that owners don't have to fully declare the total value of the contents and building but they would be paid for risks such as fire, theft, busting of pipes etc. Average Clause is a Clause that states that owners have to fully declare the total value of the home contents and building to be paid the full loss in the event of a claim. If not, only a percentage of the loss would be paid.
Definition of terms : How are the risks defined in the policy? This is because different insurance companies define risks differently would pay different amounts in the event of a claim.
Excess clause : There is a minimum amount you must bear for yourself for every loss except in the event of fire. As the amount can be from $50 to $200 for each item, it would be advisable for you clarify with your insurance agent.
How do I make a claim for my insurance?
To make a claim, you have to provide the following documents:
as a police report in the event of a break-in;
receipts if items of a certain value are lost or damaged, and
invoices of renovations done on the property
Should I over-insure or under-insure?
Generally, it would be better to over-insure than under-insure. This is because some insurance companies penalize owners for under-insuring. Moreover, it makes sense to over-insure by about 5-20% of the potential costs reconstruction as one tends to add new the contents to a home.
How much should I spend on insuring my home?
You should use the potential cost of reconstructing your home as a guideline. The cost of reconstruction should include the cost for renovations and the home contents. However, do bear in mind that the less you insure, the less you can claim if a mishap occurs.
Do I need to review my policies annually?
Yes. You should try to review the policies annually to accommodate any changes to the contents in your home, or renovations to the property.
Is home insurance policy compulsory?
If you are taking out a mortgage with a bank, then you must have the fire insurance policy for your home. Some banks are offering this policy free for the first year if you take out a mortgage with them.
What are the types of home insurance policies available for private properties?
There are two main types of policies: a standard fire policy that covers losses caused by fire, lightning and explosion; and a home insurance policy that covers destruction to a building, home contents and any renovations carried out.
Which policy should I buy?
The decision to buy an insurance policy for your home is similar to buying a life insurance policy. You have to consider your budget, and your exposure to risks in your daily activities. If your estate is prone to vandalism, burglary then you should include these items as contents to insure against.
What are covered under the home insurance policy?
In addition to the damages caused by fire, explosions and lightening, the home insurance policy also covers against fire, flood, burglary, vandalism and damage by vehicles, aircraft and other aerial devices.
What are covered under the fire insurance policies?
They cover damages caused by fire, explosions and lightning.
What should I look for in the policies?
Items covered : Does the policy cover personal accident and liability, loss or damage to valuables outside the home premises, in addition to the building, renovation and home contents.
First loss or average clause : Does the policy cover the full or only a percentage of the loss if you have under-insured your property? First Loss Policies are policies that owners don't have to fully declare the total value of the contents and building but they would be paid for risks such as fire, theft, busting of pipes etc. Average Clause is a Clause that states that owners have to fully declare the total value of the home contents and building to be paid the full loss in the event of a claim. If not, only a percentage of the loss would be paid.
Definition of terms : How are the risks defined in the policy? This is because different insurance companies define risks differently would pay different amounts in the event of a claim.
Excess clause : There is a minimum amount you must bear for yourself for every loss except in the event of fire. As the amount can be from $50 to $200 for each item, it would be advisable for you clarify with your insurance agent.
How do I make a claim for my insurance?
To make a claim, you have to provide the following documents:
as a police report in the event of a break-in;
receipts if items of a certain value are lost or damaged, and
invoices of renovations done on the property
Should I over-insure or under-insure?
Generally, it would be better to over-insure than under-insure. This is because some insurance companies penalize owners for under-insuring. Moreover, it makes sense to over-insure by about 5-20% of the potential costs reconstruction as one tends to add new the contents to a home.
How much should I spend on insuring my home?
You should use the potential cost of reconstructing your home as a guideline. The cost of reconstruction should include the cost for renovations and the home contents. However, do bear in mind that the less you insure, the less you can claim if a mishap occurs.
Do I need to review my policies annually?
Yes. You should try to review the policies annually to accommodate any changes to the contents in your home, or renovations to the property.
Option to purchase
The Option To Purchase contract - Purchasing of private property in Singapore
What is Option to Purchase?
It is an irrevocable offer made by the seller to the buyer which prevents the seller from offering another buyer of the same property within the agreed time period (usually 14 days). To ensure that a contract is enforceable the buyer pays the Option Money to the seller.
When an Option to Purchase is presented, what should I do?
You should not rush to pay the Option money until you agree with all the terms on the contract. You should:
Consult a solicitor before taking any action
If you want any amendments to be made to the Option, you should ensure that the Seller does so before you pay for the Option
Make sure that any amendment is made with the Seller's consent, because the Seller is not legally obligated to make any amendments.
Who prepares the Option to Purchase?
It is usually prepared by the Seller's solicitor. Some real estate agencies also provide their clients with the agency's Option to Purchase documents.
What is "exercising" the Option to Purchase?
It means that the Buyer is complying with all the terms in of the Option made by the Seller for selling his/her property. A binding contract is created, and the Buyer will also pay for the next 4% of the purchase price of the property.
How much Option money should I provide?
1% is the usual practice for the purchase of private properties. The standard option money for HDB flats is up to S$5,000.
What happens if I did not exercise the Option which I had paid before/on the agreed due date?
If you do not exercise the Option within the validity period stated, the Option would expire and your seller is entitled to forfeit the option money and sell the property to another buyer.
What are the main terms to look out for to make the Option valid?
The key items are:
the description of the property and the price
the validity period within which the Buyer must exercise the option in order to purchase the property.
the names of the parties involved in the transaction
Will I be able to get my deposit back, if the Seller did not complete the contract?
Yes.
The completion of the property that I am purchasing is due before my return to Singapore? What should I do?All you need to do is to appoint somebody to sign these documents on your behalf and/or do all the things that are necessary to complete your purchase. You have to do this by signing a legal document called a 'Power of Attorney'.
What is Option to Purchase?
It is an irrevocable offer made by the seller to the buyer which prevents the seller from offering another buyer of the same property within the agreed time period (usually 14 days). To ensure that a contract is enforceable the buyer pays the Option Money to the seller.
When an Option to Purchase is presented, what should I do?
You should not rush to pay the Option money until you agree with all the terms on the contract. You should:
Consult a solicitor before taking any action
If you want any amendments to be made to the Option, you should ensure that the Seller does so before you pay for the Option
Make sure that any amendment is made with the Seller's consent, because the Seller is not legally obligated to make any amendments.
Who prepares the Option to Purchase?
It is usually prepared by the Seller's solicitor. Some real estate agencies also provide their clients with the agency's Option to Purchase documents.
What is "exercising" the Option to Purchase?
It means that the Buyer is complying with all the terms in of the Option made by the Seller for selling his/her property. A binding contract is created, and the Buyer will also pay for the next 4% of the purchase price of the property.
How much Option money should I provide?
1% is the usual practice for the purchase of private properties. The standard option money for HDB flats is up to S$5,000.
What happens if I did not exercise the Option which I had paid before/on the agreed due date?
If you do not exercise the Option within the validity period stated, the Option would expire and your seller is entitled to forfeit the option money and sell the property to another buyer.
What are the main terms to look out for to make the Option valid?
The key items are:
the description of the property and the price
the validity period within which the Buyer must exercise the option in order to purchase the property.
the names of the parties involved in the transaction
Will I be able to get my deposit back, if the Seller did not complete the contract?
Yes.
The completion of the property that I am purchasing is due before my return to Singapore? What should I do?All you need to do is to appoint somebody to sign these documents on your behalf and/or do all the things that are necessary to complete your purchase. You have to do this by signing a legal document called a 'Power of Attorney'.
Friday, October 10, 2008
Financing your home
Is there any other loan that will help me to pay for the down payment of a property?
Yes, you may use a bridging loan, which is a short-term loan designed to tide the borrower over a period when he needs cash. However, because bridging loans are usually available for those taking up a housing loan from the same bank. Some people also use this type of loan while waiting for the release of his CPF funds.
When should I repay the full bridging loan?
You have to do so upon completing the transaction of purchasing the property (usually 3 months), subject to a maximum of 6 months
If the bank's lawyers delayed their preparation of a mortgage which consequently required me to pay interest to the Seller, what should I do?
Unfortunately you will not have any course of action against the bank since the bank does not bind itself to you to provide the loan before the completion date. The bank's lawyers also do not represent you, therefore you will also have no recourse against them.
What happens if I default on my mortgage loan?
The following are the actions the Bank can take:
Yes, provided that there is any left after the Bank recovers the money lent to you, including all other expenses in selling your house.
Can I sue the Bank if my property which I defaulted on the mortgage loan is sold at a very low price?
Unless you can prove that the Bank has acted carelessly or recklessly in selling your property at a much lower price that what the market is willing to pay, the Court will not interfere.
Yes, you may use a bridging loan, which is a short-term loan designed to tide the borrower over a period when he needs cash. However, because bridging loans are usually available for those taking up a housing loan from the same bank. Some people also use this type of loan while waiting for the release of his CPF funds.
When should I repay the full bridging loan?
You have to do so upon completing the transaction of purchasing the property (usually 3 months), subject to a maximum of 6 months
If the bank's lawyers delayed their preparation of a mortgage which consequently required me to pay interest to the Seller, what should I do?
Unfortunately you will not have any course of action against the bank since the bank does not bind itself to you to provide the loan before the completion date. The bank's lawyers also do not represent you, therefore you will also have no recourse against them.
What happens if I default on my mortgage loan?
The following are the actions the Bank can take:
- Sell your property to recover the money lent to you;
- Appoint a receiver, that is to appoint a person to take charge of the property if the bank wishes to obtain rents from your property;
- Insure your property against fire and other fortuitous accidents, and
- Refuse to allow you to redeem the mortgage of another property if you have mortgaged more than one property
You may do so by giving a notice of redemption to your Bank. Your lawyer will prepare a "total discharge of mortgage". He will then arrange with the Bank's lawyer to execute the Total Discharge of Mortgage, and register it at the Registry of Land Titles. You then pay off the mortgage loan in exchange for the signed "total discharge of mortgage" or "deed of reassignment
It may be redeemed any time, however, but you may have to pay a fee for early redemption. The fee is known as the pre-payment penalty, and is based on the mortgage loan amount or outstanding amount.
Should I refinance my property with another bank with much lower interest rates?
It all depends. This is because you must take into account the pre-payment penalties involved in redeeming your mortgage earlier than the maturity date. Therefore, you have to compare the monthly installments offered by each bank and include the penalties for terminating the original loan. Also, it would be not be sensible to refinance at the end of a loan period since the interest gain in the new bank would be minimal.
Can I use an overdraft to rebuild my bungalow?
You can use an overdraft to rebuild your property, but a reconstruction loan has a lower interest rate, and you only need to pay for the interest rates on the amount you have used.
After the Bank sells my house, will I be entitled to any money?Yes, provided that there is any left after the Bank recovers the money lent to you, including all other expenses in selling your house.
Can I sue the Bank if my property which I defaulted on the mortgage loan is sold at a very low price?
Unless you can prove that the Bank has acted carelessly or recklessly in selling your property at a much lower price that what the market is willing to pay, the Court will not interfere.
Wednesday, August 6, 2008
Purchasing Private properties with CPF
All about CPF for purchasing private properties
Central Provident Fund (CPF) usage in purchasing private properties in Singapore
Can I buy a private property using my CPF?
Yes. Under the Approved Residential Properties Scheme by the CPF Board, you can use your CPF savings for the following purposes:
1. Pay the purchase price of the property
2. Redeem a housing loan taken for the purchase of a residential property
3. Monthly installments of existing housing loan
4. Repay a housing loan taken for the purchase of land and the construction of a house on that land
5. Pay for stamp duty, valuation and legal fees on transfer or conveyance in the purchase or mortgage of a property
However, you cannot use your CPF savings for the deposit or down payment; monthly service and conservancy charges; property tax; renovations, and repair of your property.
How much CPF can I use to buy a private property?
You may use 100% of the existing savings in the Ordinary account, and 100% of your future monthly CPF contributions that are paid to your ordinary account.
When should I apply to the CPF Board if I intend to use my CPF to buy a private property?
You must do so as soon as possible because the CPF approval can take up to 3 weeks, and the Bank loan would only be released after the CPF has released the funds from your savings account.
My brother and I are buying a private property jointly, how much CPF can we use?
Immediate family members may jointly use up to 100% of their Ordinary Account balances to buy a property. However, the total amount (lump sum and monthly installments) cannot be more than the purchase price of the property.
What criteria must i fulfill to use my CPF to purchase private properties
The following conditions must be met when using your CPF savings for buying properties:
1. Leasehold properties bought cannot have less than 60 years left in the tenure.
2. Only immediate family members can combine their CPF savings to buy a property, and they can use up to 100 % of their Ordinary Accounts. However, the total amount (lump sum and monthly installments) withdrawn by all joint owners should not exceed the purchase price of the property.
3. The CPF Board must approve the sale of the property before the property is sold, mortgaged or transferred. After the sale of the property, all money withdrawn from your CPF account, must be returned to your CPF savings. The money return must include the principle sum withdrawn and the accumulated interest of the sum withdrawn.
4. There must be a lapse of 1 year from the date of the signing of the Sale & Purchase agreement before CPF members can re-use their refunded CPF savings and accrued interest. However, this rule does not apply to those who are upgrading from HDB flats to private properties.
Central Provident Fund (CPF) usage in purchasing private properties in Singapore
Can I buy a private property using my CPF?
Yes. Under the Approved Residential Properties Scheme by the CPF Board, you can use your CPF savings for the following purposes:
1. Pay the purchase price of the property
2. Redeem a housing loan taken for the purchase of a residential property
3. Monthly installments of existing housing loan
4. Repay a housing loan taken for the purchase of land and the construction of a house on that land
5. Pay for stamp duty, valuation and legal fees on transfer or conveyance in the purchase or mortgage of a property
However, you cannot use your CPF savings for the deposit or down payment; monthly service and conservancy charges; property tax; renovations, and repair of your property.
How much CPF can I use to buy a private property?
You may use 100% of the existing savings in the Ordinary account, and 100% of your future monthly CPF contributions that are paid to your ordinary account.
When should I apply to the CPF Board if I intend to use my CPF to buy a private property?
You must do so as soon as possible because the CPF approval can take up to 3 weeks, and the Bank loan would only be released after the CPF has released the funds from your savings account.
My brother and I are buying a private property jointly, how much CPF can we use?
Immediate family members may jointly use up to 100% of their Ordinary Account balances to buy a property. However, the total amount (lump sum and monthly installments) cannot be more than the purchase price of the property.
What criteria must i fulfill to use my CPF to purchase private properties
The following conditions must be met when using your CPF savings for buying properties:
1. Leasehold properties bought cannot have less than 60 years left in the tenure.
2. Only immediate family members can combine their CPF savings to buy a property, and they can use up to 100 % of their Ordinary Accounts. However, the total amount (lump sum and monthly installments) withdrawn by all joint owners should not exceed the purchase price of the property.
3. The CPF Board must approve the sale of the property before the property is sold, mortgaged or transferred. After the sale of the property, all money withdrawn from your CPF account, must be returned to your CPF savings. The money return must include the principle sum withdrawn and the accumulated interest of the sum withdrawn.
4. There must be a lapse of 1 year from the date of the signing of the Sale & Purchase agreement before CPF members can re-use their refunded CPF savings and accrued interest. However, this rule does not apply to those who are upgrading from HDB flats to private properties.
Friday, August 1, 2008
Er...what is confirmed list system?
Er...what is confirmed list system?
Aug 3, 2008
FINANCIAL QUOTIENT
Er...what is confirmed list system?
* Where do you see this?
In articles about property and Government announcements on the sale
of land.
* What does it mean?
It is a method of selling land that the Government employs.
Sites on the confirmed list are for outright sale, meaning they will
be tendered out on scheduled dates, regardless of whether developers
have indicated interest.
* Why is it important?
This is not a market-driven approach. But it allows the Government to
hasten the development of certain sites for planning and other
strategic reasons.
For instance, in its land sales programme for the second half of the
year, it offered a 3ha hotel site at Bukit Chermin Road under the
confirmed list.
The sale of the site, it said, is timed to coincide with the 2011
completion of Labrador Nature and Coastal Walk nearby. Together,
these developments will enhance the attractiveness of the area as a
premier leisure and recreation destination.
The Government also offered a site in Stamford Road comprising the
existing Capitol Theatre, Capitol Building, Stamford House and
Capitol Centre.
* So you want to use the term? Just say...
'The Stamford Road site with the conserved Capitol Theatre is on the
latest confirmed list. That means it should be sold soon. When it is
restored, the area will become more vibrant.'
Aug 3, 2008
FINANCIAL QUOTIENT
Er...what is confirmed list system?
* Where do you see this?
In articles about property and Government announcements on the sale
of land.
* What does it mean?
It is a method of selling land that the Government employs.
Sites on the confirmed list are for outright sale, meaning they will
be tendered out on scheduled dates, regardless of whether developers
have indicated interest.
* Why is it important?
This is not a market-driven approach. But it allows the Government to
hasten the development of certain sites for planning and other
strategic reasons.
For instance, in its land sales programme for the second half of the
year, it offered a 3ha hotel site at Bukit Chermin Road under the
confirmed list.
The sale of the site, it said, is timed to coincide with the 2011
completion of Labrador Nature and Coastal Walk nearby. Together,
these developments will enhance the attractiveness of the area as a
premier leisure and recreation destination.
The Government also offered a site in Stamford Road comprising the
existing Capitol Theatre, Capitol Building, Stamford House and
Capitol Centre.
* So you want to use the term? Just say...
'The Stamford Road site with the conserved Capitol Theatre is on the
latest confirmed list. That means it should be sold soon. When it is
restored, the area will become more vibrant.'
Sunday, July 6, 2008
Tax issues when purchasing and investing in a Singapore property
What is property tax?
Property Tax is a tax on properties in Singapore. These include HDB flats, houses, apartments, factories, shops, offices and land. The amount of Property Tax payable per year is computed based on a percentage (tax rate) of the Annual Value of the property.
What is the property tax rate?
The tax rate for owner-occupied residential property is 4% of the annual value of the property and the tax rate for not owner-occupied residential property is 12% of the annual value of the property.
Foreigners who own landed properties have to pay a surcharge of 10% of the annual value.
Can I be granted the owner-occupied residential rate for all my properties if I reside in 3 different properties?
No. You can only be granted the owner-occupied rate for only 1 property.
Can I choose to have the owner-occupied residential rate of 4% if I own a HDB flat and a private apartment?
No. The owner-occupied residential rate can only be for your HDB flat. If you own 2 or more private properties, you can choose to have the owner-occupied residential rate for any of them.
What is the residential property tax rate for companies with ownership of the property?
Companies with ownership of the property is not owner-occupied residential property hence that tax rate is 12% even if the company maybe using the residential property as employees' lodging.
If the seller did not pay for the outstanding property tax after I had purachased his/her property, am I liable to pay for him/her?
The Inland Revenue Authority of Singaoire (IRAS) looks at the property and not the owner for property tax. Therefore you are liable to pay his/her property tax.
How do I know if the Seller has paid for the property tax?
You can ask your lawyer to request the seller to produce the receipt for property tax or the Confirmation Note issued by the Comptroller of Property Tax.
How do I find out the amount of tax for the property that I am buying?
You can request the Seller for his current property tax bill.
Property Tax is a tax on properties in Singapore. These include HDB flats, houses, apartments, factories, shops, offices and land. The amount of Property Tax payable per year is computed based on a percentage (tax rate) of the Annual Value of the property.
What is the property tax rate?
The tax rate for owner-occupied residential property is 4% of the annual value of the property and the tax rate for not owner-occupied residential property is 12% of the annual value of the property.
Foreigners who own landed properties have to pay a surcharge of 10% of the annual value.
Can I be granted the owner-occupied residential rate for all my properties if I reside in 3 different properties?
No. You can only be granted the owner-occupied rate for only 1 property.
Can I choose to have the owner-occupied residential rate of 4% if I own a HDB flat and a private apartment?
No. The owner-occupied residential rate can only be for your HDB flat. If you own 2 or more private properties, you can choose to have the owner-occupied residential rate for any of them.
What is the residential property tax rate for companies with ownership of the property?
Companies with ownership of the property is not owner-occupied residential property hence that tax rate is 12% even if the company maybe using the residential property as employees' lodging.
If the seller did not pay for the outstanding property tax after I had purachased his/her property, am I liable to pay for him/her?
The Inland Revenue Authority of Singaoire (IRAS) looks at the property and not the owner for property tax. Therefore you are liable to pay his/her property tax.
How do I know if the Seller has paid for the property tax?
You can ask your lawyer to request the seller to produce the receipt for property tax or the Confirmation Note issued by the Comptroller of Property Tax.
How do I find out the amount of tax for the property that I am buying?
You can request the Seller for his current property tax bill.
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