How much money do I need before I could consider buying a condo in Singapore?Bryan
First, most people migrate to developed countries because they want to know about such countries' lifestyles. Meanwhile, Singapore falls into the category of developed countries. Many are usually confused when they are on the verge of buying a condo in Singapore. If you are a foreigner in Singapore or you're planning to relocate to Singapore, I'm sure that you will be perplexed as per the cost of condominiums in Singapore.
Example Condo: The Avenir
To buy your first home in Singapore would be an overwhelming experience. Regarding real estate, Singapore is expensive in the world. Singapore's property market has taken a different turn recently because of the COVID-19 lockdown that ravaged the whole world. Starting the journey to buying a condo in Singapore is a complicating decision. Hence, people who are desirous of buying a condo in Singapore are advised to prepare financially.
The prices of condominiums in Singapore starts from $489,000 but varies according to the seller and the location. It would also vary based on your purpose of buying. That is, whether you are buying the property for commercial or residential purposes.
However, one thing is for sure! If your down payment is large, you will be paying a lesser mortgage amount, monthly. However, on the regular, you will be required to pay between 5% and 20%.
Down payment for a condo:
Let's focus on the down payment for a condo. It is simply dependent on the ratio of the loan to valuation (LTV) that would attain 75% of your property.
The down payment that should have in your pocket or bank account is 25%.and 5% cash. This is in addition to some funds that are required for buying a property in Singapore.
Cash : 5%
CPF funds : 2%
A lot of people consider that buying a condo or property in another country would be easy. But they forget about some principles and laws governing the buying of property or car. Regarding real estate in Singapore, it would never be an overnight dream. You have to follow their rules and laws to buy a condo there.
It would help if you Accounted for buyer stamp duty (BSD). Many people think that to buy a property in a foreign country, they only need a minimum of 5% cash in their accounts. But it is not pretty much.
However, people who are planning to buy a property should know about buyer stamp rates.
For instance, lets consider the buyer rate for a $2 million property
1% of $ 2million = 20,000 USD
2% of $ 2million. = 40,000 USD
3% of $ 2million. = 60,000 USD
TOTAL BSD = 1,20000USD
Firstly, You have to pay the cash before they can give you the BSD of your property.
For your down payment security, you can pay the amounts through TSDR (Total debt to servicing ratio). Calculating your TSDR is straightforward. You have to calculate it as your monthly debt and divide it into your monthly salary.
Remember that you have to train yourself either for financial exigencies or other problems because you have to decide whether to buy an apartment from an expensive environment. As you know, the property is an asset. You can spend your money once in life to build or buy a condo, whether it's in your own country or a developed country. You can plan better for your future and also for the incoming partner. Enjoy your life, but don't forget to visit and buy the condominiums. I hope that this answer is valuable to you. Enjoy your life fully.