WHY SHOULD YOU INVEST IN SINGAPORE PROPERTY?
LIFESTYLE
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​As the happiest Southeast Asian country, Singapore offers a high standard of living and quality of life.
A dynamic and technologically-advanced country, Singapore is well-connected with a reliable, efficient, and affordable public transportation system.
Singapore is also home to world-renowned shopping & financial districts - Orchard Shopping Belt and Marina Financial Centre. This is where legendary hospitality, world-class shopping, and global brands & businesses are flocking to for an ever-advancing future.
INVESTMENT GROWTH
Singapore boasts a stable political climate, as well as a competitive, corruption-free, and open business environment – key elements necessary for safe investments.
With a diversified and stable economy, Singapore has become a world-renowned research and development (R&D) hub, bio-medical centre, as well as a dynamic banking & finance district.
Global businesses have made their home in Singapore, and foreign investors are following in their footsteps. For investors, Singapore is truly a safe haven.
EDUCATION
Singapore’s education system is world-renowned, with countless awards and accolades across the various institutions.
Prestigious universities in Singapore include the Nanyang Technological University, National University of Singapore and Singapore Management University.
These universities and institutes of higher education are internationally recognized, and highly-sought after by local and international students alike.
BUYING PROCEDURE
Planning of investment and risk strategies
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Collecting of keys
Finding value buys
Understanding your needs and requirments.
Securing of housing loans
Settling of paperwork
INVESTMENT STRATEGIES
LEGACY PLANNING
(LOCALS/ FOREIGNERS)
Legacy planning is a financial strategy that prepares people to bequeath their assets to a loved one or next of kin after death. These affairs are usually planned and organized by a financial advisor.
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PORTFOLIO OPTIMISATION
(LOCALS)
Real estate investments are not a one-time transaction. Instead, it’s a good practice to continually review your asset portfolio, and assess if it’s still optimal for your needs. Get an in-depth evaluation and assessment of your portfolio now!
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DECOUPLING
(LOCALS)
Decoupling is the process where one co-owner of a property transfers his or her ownership to the other co-owner of the same property. It is an effective way to save on taxes payable on a second property.
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MATRIMONIAL HOME IN SG
(LOCALS/FOREIGNERS)
Buying your first property is a pretty big deal & can be a daunting one as well. Be in the know and save yourself from the headaches and worries by consulting us for a professional step-by-step guide so you will be more confident to move forward and get your dream home!
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ASSET PROGRESSION PLANNING
Sell One Buy Two refers to the process whereby a couple sell off their HDB and purchase a condo each under their name. It is a popular way to grow one's asset wealth as keeping an HDB long term will cause you to lose on on inflation and capital gain.
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FAMILY OFFICE SET UP
(FOREIGNERS)
If you are coming to Singapore and have the intention to set up a small scale office in your residential home, you need to be familiar with the procedure, guidelines requirements and the performance criteria! We are your one-stop solution where we take care of all the necessary work so you can have more time planning for your business!
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RISK MANAGEMENT STRATEGIES
1. Set aside contingency fund
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With every investment, there is a certain level of risk involved. As such, it is important to set aside a sizeable contingency fund, should any unexpected circumstances arise. Discover how to assess the amount needed for your specific situation.
2. Mortgage insurance
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Another way of managing risk, especially in property, is by purchasing mortgage insurance. Mortgage insurance ensures that your property is insured, should any unforeseen situations occur.
3. Lasting power of attorney
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When it comes to investments, security is everything. A lasting power of attorney will ensure that your assets are protected, should the worst occur. This will allow a trusted individual to act on your behalf, minimizing risks.
HOUSING LOANS
RATES
There are 4 types of rates in the market:
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1. Singapore InterBank Offered Rate (SIBOR)
- This is a daily reference rate based on the interests at which banks offer to lend unsecured funds to each other in the Singapore wholesale money market.
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2. Variable Rate
- This rate is pegged to the Bank Internal Board Rate. This means that banks can review the rates as and when they want. This causes uncertainty to what borrower have to pay in the future.
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3. Fixed Deposit Rate
- This refers to a Mortgage loan package that is pegged to the Fixed Deposit interest rate. In the event the bank decides to increase the Fixed Deposit rate, your mortgage loan rate increases.
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4. Fixed
- This rate is normally offered between 1 to 5 years, and the interest rate will usually be higher than the rest. Typically, the longer the fixed period, the higher the interest rate. This is because the bank will have to bear the risk of interest rate going up.
TOTAL DEBT SERVICING RATIO FOR FOREIGNERS
What is TDSR?
Total Debt Servicing Ratio (TDSR) is a debt servicing measure that bank/ financial institution used to determine i the potential borrower is overly geared with debts.
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How to compute TDSR?
Based on the newest measure, TDSR should not be more than 60%
Monthly Total Debt Obligations
_________________________ < 60%
Gross Monthly Income.
What is MSR?
Mortgage Servicing Ratio, or MSR, is a limit imposed by the MAS on how much money you can borrow when you take out a loan to buy HDB property or an EC.
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How to compute MSR?
Under the MSR, a maximum of 30% of your gross monthly income can be used to repay your loan.
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STAMP DUTY & TAXES
Additional Buyer Stamp Duty (ABSD)
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Liable buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD). ABSD and BSD are computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount).
Seller Stamp Duty (SSD)
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SSD is payable on all residential properties and residential lands that are acquired on or after 20 Feb 2010 and disposed of within the holding period.
Property Tax
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Property Tax is a tax on property ownership. It applies whether the property is occupied by the owner (owner-occupied), rented out or left vacant.
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To find out more about different taxes and how to go about in your investment to minimise paying them, do give us a call a drop us a message below.