Singapore is a fantastic place to invest in real estate. But is it possible for non-citizen people? Many foreigners visit this beautiful country yearly to spend their vacations with family. But if you own your property, you can come to this place any time and stay here for many days.
On the other hand, investing in a profitable real estate industry is better. Many want to know whether they can purchase any property like Terra Hill in Singapore even if they are not residents. This write-up will provide all the necessary information if you want to know the eligibility and process.
Like others, you can also make a profitable investment, but it is necessary to know the entire process. If you know about the eligibility, you can easily apply for it and manage funds for the purchase. Other information about Singapore properties is essential to determine, like price, the application process, documents, etc.
About Singapore Foreigners
If one is not a resident or citizen of Singapore, one will call as a foreigner. Even if you have become a permanent resident, you will be considered with the same term. If you are not a company or a part of an association or partnership, you will still be the same.
The one who is born here will not be a foreigner. Therefore, it is okay if you are not a resident or belong to any organization in Singapore.
Is It Possible for Non-citizen or Foreigners to Purchase Any Singapore Property?
The good thing is that you can invest in any property in Singapore, but the bad thing is the restrictions. You can step into the real estate industry of this country, but you must expect the process to be more complex. You will face certain restrictions, so you must be prepared for them.
As per the 2005 Act of Residential Property, any foreigner can invest his money in different properties, but specific restrictions will be applied to it. You must keep one thing in mind: you have limited options in properties for the purchase. For example, you can buy an apartment in a building of only six stories.
If you desire to buy an apartment higher than the sixth floor, you will require government approval. Only you will be granted the desired flat when the land authority approves your request. But in the case of a condo, there are no such restrictions.
Suitable Age When You Can Invest in Real Estate
If you plan to make a real estate investment in Singapore, you must be 21. If you are younger than this age, the government will not permit you to enter the real estate industry. As a parent, you can invest your money in a condo or an apartment for your children’s future. But your child will become the owner legally only when he turns 21 years.
Process of Purchasing Any Singapore Property
Initially, you need to find a legal professional and an agent in the real estate sector. These people can help you find legal properties where you can invest your money, and a lawyer can help you understand the entire legal process. Once you confirm these two people, you must follow the steps:
Setting the Price
A real estate agent will help find a suitable property and fix a meeting with the seller. You can negotiate and set the desired price of an apartment. If required, you can also manage a mortgage from any reputed bank. You can take a loan from the local bank or manage the process by taking an overseas property loan.
Pay the Option Fee
Many people prefer to give an option fee, i.e., one percent of the total property amount. This payment is made to secure your favorite apartment for a few weeks. The lawyer will help draft the entire payment you need to give to the seller. After following all the terms, you can choose the payment option and pay later.
Pay the Remaining Down Payment
If you are sure or willing to invest in any property, you need to pay the remaining 9 percent down payment. But it is necessary to add that amount to the Option fee. You must pay the remaining amount by the given deadline. You must remember the Purchase agreement.
Confirming the Ownership of the Property
Once you pay the entire down payment, your lawyer will proceed further by formulating the option. The person will confirm the ownership of the apartment you own and consider it legally sold to a non-citizen person.
For property transfer, your lawyer can prepare all the necessary documents and register the sale correctly and legally. You must cooperate with your legal professional by submitting all required documents and signing wherever required.
Purchase is Completed
When the entire process is done, your purchase will be completed, and the property will be yours. You can pay the remaining amount in installments, but you can stay in your new house.
Taxes to Pay for Singapore Property
Before you invest in any house in Singapore, you must consider all the necessary taxes. You can assume it to be 7 to 20 percent of the purchasing price. It includes BSD, legal fees, exchange rates, the fee charged by the real estate agent, ABSD, etc. You want to know about the restrictions of investing in any Singapore Property as a non-citizen, i.e., limited property options.
The Bottom Line
In Singapore, any foreigner can enter the real estate sector and invest in any property. But you need to consider the limited property options suggested by the agent. Consider the entire process of the purchase and proceed with the investment.
Once you become the flat owner, you can come to the city whenever you desire with your family. Planning for a vacation when you own a property will become easy. With restrictions, you can buy an apartment or house in your favorite locality and stay with your family for many days.