Guide to Buying New Sale Residential Property

By
/ The Edge Property
|
June 10, 2016 12:00 PM SGT
Pre-purchase checks
  • Singapore citizens who own a HDB flat, DBSS flat or Executive Condominium must fulfill the minimum occupation period of 5 years before they can purchase private residential properties
  • A foreign person will require approval from the Land Dealings Approval Unit of Singapore Land Authority before they can purchase the following types of residential properties:
o Vacant residential land
o Terrace house
o Semi-detached house
o Bungalow/detached house
o Strata landed house which is not within an approved condominium development under the Planning Act (eg. townhouse or cluster house)
o Shophouse (for non-commercial use)
  • A foreign person can purchase the following types of residential properties without special approval:
o Condominium unit
o Flat unit
o Strata landed house in an approved condominium development
o A leasehold estate in a landed residential property for a term not exceeding 7 years, including any further term which may be granted by way of an option for renewal
o Executive condominium unit, HDB flat and HDB shophouse
  • Estimate your budget by using a TDSR and mortgage calculator
Selecting your dream home
  • Consider the qualities your dream home should possess, such as location, amenities, facilities and design
  • Shortlist the developments that fit your requirements. Consider engaging a real estate salesperson (property agent) who can assist you in making your selection and handling the paperwork
  • Check that the salesperson is registered with the Council for Estate Agencies (CEA)
  • Salesperson’s commission is usually paid by the developer for New Sale
  • Visit sales galleries of your shortlisted developments to learn more and zoom in on your dream home
Procedure for purchase
  • Obtain an Approval in Principle (AIP) for a bank loan
  • An AIP lets you know your eligible loan quantum and the monthly mortgage payable
  • Having an AIP before booking prevents the forfeiture of your booking fee should there be hiccups in the process of mortgage approval
  • Make payment of 5% to 10% booking fee to the developer for the Option to Purchase (OTP)
  • Option to Purchase is valid for 3 weeks from delivery of S&P
  • Buyer cannot do a sub-sale during the Option stage as the...