Guide on First Time Buying a Home in Singapore

Guide for First Time Buying a Home in Singapore

Advantages of a New Home

Getting a new home is a great choice because there is no need to undertake expensive and messy renovation work or repair the existing plumbing and electrical wiring. As the place is ready for occupation, the key to the front door is given to you. All you have to worry about is where to place the furniture. Greater flexibility Buying a newly completed home is easy because it allows you the flexibility in decision-making. Home seekers who are not in a rush can buy during a launch or during construction; but of course for those who want to move in immediately, the completed project is ideal as there are usually some units left over. These units are sold directly by developers, which means you get a brand new unit and there are usually a gamut of choices on various floors as well. Affordability There are other benefits too, such as affordability. The selling price of some new projects can be lower than resale homes, which means that you are getting brand new facilities at a better price and you don't have to spend more money renovating the place. Property can be a worthy long-term investment. But like all investments, research should always be done. In the right circumstances, your investment can grow in value. Anecdotally, people have sold their units even before the apartments are completed. Others choose to use their property as rental units, and they could see returns almost immediately. So where can you buy a newly completed home? There are many such projects being sold all across Singapore as we speak. Many large developers have stocks of developments that are ready for occupation. So if you're keen to purchase a new home and would like to move in as soon as possible, then you might want to act now. Happy house hunting!

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Financing a New Home

Purchasing a new home can be very costly. Fortunately for us, we can turn to the bank for a mortgage loan to help us out. Mortgage loans allow us to pay for a home in installments. After you apply for a mortgage, the mortgage lender will hold onto the ownership of the property till you as the buyer can pay the mortgage off. However, you can still occupy the property as if it were your own. There are a number of mortgages on offer and you may want to choose the one which best suits your needs. Fixed rate mortgages With this package, your repayments are fixed and there will be no change as to the amount you are required to pay even if you are struggling financially. Often there is a penalty involved if you do not pay on time or if you end the mortgage early. Variable rate mortgages This type of package seems to be very popular with home owners. In this case, the lender sets what the interest rate is which allows for more flexibility in repayment. However, there may be a delay as the mortgage provider might change the rates from time to time. Tracker mortgages These mortgages are set at a fixed percentage but they change over time to match rate changes made by the bank. What this means is that your payments may increase if the mortgage rate rises. However, you will pay less if the rate decreases. If you think that the financial climate is not doing well and this would cause the mortgage rate to decrease, then this is a good package to gamble on. Offset mortgages This package is a good solution if your current or savings account is on credit. If you read through the terms and conditions of an offset mortgage, your balance will cancel out some of the borrowing and you'll just need to pay interest on what's left. This type of mortgage can be risky because if you spend any of your savings, then the amount of interest-free borrowing will decrease. However it is a good way of keeping payments down if you expect to be in credit over the full term.

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Repayment mortgages This type of mortgage will guarantee you ownership of your home in the long term, but there is just one catch- repayment mortgages cost more. Monthly repayments will go towards clearing your interest fee and paying back your initial borrowing. This package is good if you are facing financial problems or if you expect a wage increase in the future. Interest only mortgages In this package, your monthly payments cover the cost of the interest, but you do not have to pay off the capital value of your home. This is a good way of keeping repayment costs down. However, in the long term you will be required to pay off any a certain amount of money. Usually, this will be the amount you borrowed initially. If you cannot pay the remainder of what you owe, then you stand the risk of losing your house.

First Time Home Buyers

Buying a property: This can be particularly challenging if this is your first purchase. However, having healthy cash amounts at hand and understanding the market and steps involved will certainly ease the whole process. Consider the following issues: (1) (a) (b) (c) (d) Your Affordability - understand the costs involved in terms of:The initial deposit required (minimum 5% cash) Stamp duty (1st $180,000 @ 1%; next $180,000 @ 2% and thereafter at 3%) Legal Costs (some of these costs may be subsidized by the financing bank) Monthly Installment - is it within my paying capacity? Ideally, this Debt Servicing Ratio (DSR) should

not exceed 50% of your monthly income). In addition, is the client eligible for any form of grants? This may be relevant for HDB properties. (2) Know the market price of the property.

Get an indicative valuation from an Accredited Mortgage Consultant (AMC) who will give you an objective valuation, as usually the AMCs will have no interest in selling your property.

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(3)

Obtain an Approval-in-Principle (AIP)

Before paying for the 1% deposit. We suggest getting an Accredited Mortgage Consultant to negotiate a home loan deal that's best for you. Ideally, this should be in writing. Complete an application form to authorize the bank to do a proper credit search to calculate the loan sum. A formal bank letter will then be issued.

Public Housing Eligibility

In its infant years, Singapore, then under colonial rule suffered under dire states. The island state had been divided ethnically on both sides of the Singapore River to keep the upper class British citizens and the growing local populace of former immigrants from India, China and Malaya separate. The slum like settlement for the locals in Singapore was only exacerbated by the repercussions from World War 2. Huge amounts of damage were done to an already struggling country and housing quality further plummeted. By 1947, the average person per building density was about 18.2. In 1959, the shortage of housing persisted and HDB had estimated that about 300,000 people lived in squatter settlements in the suburbs while another 250,000 eked out a living in squalid shop houses in the Central Area. The British had, in 1920, set up the Singapore Improvement Trust (SIT) in a bid to provide more housing for the growing population but had only managed to build 23,000 units in the 32 years of its existence. World War 2 had only further diminished what small progress they had made. When the PAP took power in 1959, it promised to make providing affordable and easily accessible public housing for all its early modus operandi. Between 1960 and 1965, the newly established Housing Development Board, which was formed after SIT was dissolved soon after the PAP took office, built 54,430 flats. Ever since then, HDB has been building up-market flats and executive condominiums to cater to a varying demographic of Singaporeans. For instance, the executive condominiums or ECs were built to cater to Singaporeans who prefer private property like atmosphere but are unable to afford actual condominiums. As HDB flats were meant to be reasonably priced and affordable, around 1948, the government allowed Singaporeans to utilize their CPF monies to pay for the flats, a feat that is now synonymous with any purchase of public housing in Singapore these days. Therefore, embarking on an initial purchase of a flat can be a very daunting task, especially if you are newly married and looking to start a family.

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Determining your Eligibility

The precedents for applying for a HDB flat now, requires the applicant to be at least 21 years old at the time of the application and that he or someone else part of the family nucleus be a Singapore citizen or a Singapore Permanent Resident (SPR or PR). There are three schemes which HDB provides to aid families in obtaining flats; Public, Fianc/Fiance and Orphan. The Public scheme encompasses you, the applicant, your spouse and children (if any), parents and siblings (if any) and children under your legal custody, care and control (widowed/divorced). The family nucleus must consist of at least 1 Singapore Citizen or SPR. The Fianc/Fiance scheme involves you, the applicant and your Fianc/Fiance where one applicant must be a Singapore Citizen or a SPR. If your fianc/fiance is below 21 years old, he/she can only be listed as an occupier in the application. In addition, if he/she is between 18 and 20 years old, a written consent from the parents or legal guardians must be submitted with the application. HDB does not allow changes to the name of the fianc/fiance to be made in the event where the marriage is called off, even with permission from the ex-fianc/fiance. A single child applying with parents at the time of registration will not be allowed to delete the parents name in order to include the fianc/fiance under this scheme. The Orphan scheme involves you, the applicant and all your unmarried siblings who will be living in the same flat. All names are to be represented on the same application. In addition, at least one of the deceased parents must be a Singapore citizen or a SPR. Take note that siblings are not allowed to rent or buy flats under this scheme separately. HDB flats come in various sizes of 2-rooms, 3-rooms and 4-rooms and exist in mature towns/estates as well as non-mature towns/estates. Some examples of mature towns are Marine Parade and Bedok while non-mature towns are up and coming new towns sometimes built within established districts like Woodlands and Bishan. The eligibility of each flat type in the respective mature/non-mature town groupings rely heavily upon the average gross monthly household income of the applicant. Applicants with a gross monthly household income of not more than $10,000 but higher than $5,000 are eligible to purchase 3-room, 3-room (premium), and 4 -room or bigger flats. If the applicant is buying with Page 5 of 30

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the extended family, the gross monthly household collective income must not exceed $15,000 while the respective monthly income cannot exceed $10,000. Those who wish to apply for a flat with a gross monthly income of above $2,000 but not exceeding $5,000 are eligible to apply for 3-room flats in non-mature estates. Applicants whose gross monthly household income does not exceed $2,000 are eligible to apply for 2room flats. Neither you or your spouse or any other occupiers or their spouses listed in the application form or must not own or have disposed any other flat, house, building or land within 30 months before the date of the application and between the application date and the date of assuming possession of the flat. HDB, however, may grant exemptions based upon the merit of each case. Those whom wish to seek exemptions or further clarifications can do so by contacting HDB directly. Applicants need to take note that the Minimum Occupancy Period or MOP is 5 years and during that time, you will not be able to sell or rent your entire flat. If after the 5 years you have intention of renting the whole flat out, you will need to seek approval from HDB before proceeding. You are, however, able to rent out single rooms during the MOP without any approval from HDB, although you are required to register the subletting of bedrooms with HDB within 7 days of doing so and update them of any terminations or new leases.

Things to know before you buy

Basic Factors to Consider Some of the things you need to consider before purchasing a home are: Budget Commuting plans Type of property you are looking to purchase Additional facilities The most important question to consider is: what is your budget for purchasing a home? This will help you in determining the type of residential property you are eligible for. However, if you do not have a specific budget constraint, then you might want to decide what type of residential property is suitable for you and your family. This can be determined by other factors such as commuting plans and additional facilities, which may include neighborhood schools, if you have children, and the proximity of certain amenities such as shopping malls and sports complexes.

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Financing Your Home It is advisable to finance the purchasing of a home using a bank loan, especially if you have limited excess funds. For this, it is recommended that you decide first on the type of residential property you are looking for, and ensure that it is within your budget. If you have engaged a real estate agent or a solicitor to act on your behalf, check with them on all fees payable so as to prepare a more accurate estimate of your overall budget. Banks will also charge an administrative fee for processing a mortgage, as well as an additional fee for valuing a property. When applying for a mortgage, the amount you will ultimately be allowed to borrow will depend on your own individual financial circumstances and the bank's valuation of the property or the actual transaction price, whichever is lower. The bank will also take into consideration your ability to make the monthly installments to repay the loan, as well as your credit history. Singaporeans are usually allowed to borrow up to a maximum of 90 per cent of the property value, while foreigners may be granted a loan of up to 60 per cent to 70 per cent of the property value or purchase price. Some foreigners may be allowed to borrow up to a maximum of 80 per cent, depending on their credit standing and their ability to provide evidence of having established funds, but this approval is only granted on a case-by-case basis. For resale flats, a loan of 90% of the resale price of 90% of the market value, whichever is lower is offered to qualifying parties. If you are buying a Housing Development Board (HDB) flat, you may want to look into applying for a HDB loan. HDB offers concessionary loans to first-time home buyers and second-time home buyers, who are upgrading to another HDB flat. DBSS (Design, Build and Sell Scheme) and BTO (Built to Order) flats are also available and applicable to Singaporeans only. (Visit the HDB website www.hdb.gov.sg) There are various schemes offered by HDB to ease the process of paying for a HDB flat. Listed below are some of them; Additional CPF Housing Grant (AHG): This is meant to assist families with a steady income to purchase their first subsidized HDB flat. The AHG can be used for the purchase of new, resale and DBSS flats and it is an additional subsidy over and above the regular market subsidy and CPF Housing Grant that new and resale flat buyers respectively enjoy. This scheme was further enhanced in 2009 to make owning a home easier especially for lower income families. The maximum AHG amount has been

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increased from $30,000 to $40,000 and the income ceiling has been raised from $4,000 to $5,000. Continuous working period preceding the flat application is reduced from two years to one year. Special CPF Housing Grant (SHG): This scheme provides first-timer families who are earning up to $2,250 a month to buy a smaller flat from HDB that is well within their means. CPF Housing Grant for Families DBSS: The CPF Housing Grant is a housing subsidy (in the form of CPF monies) provided by the Government. The grant assists eligible first-timer family to buy a DBSS flat from the developer. (Visit the HDB website http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatFamilyGrantDBSS?OpenDocument ) CPF Housing Grant for Singles/Singles living with parents: This is to assist singles who are 35 years and older in purchasing a flat. (Visit the HDB website http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatSinglesGrant?OpenDocument ) The CPF Housing Top-Up Grant: This scheme is a housing subsidy for those who have taken a CPF Housing Grant for Singles previously in their purchase of a resale flat who marry a first-timer citizen spouse or another Singles Grant recipient or in the event where the non-citizen spouse or child have become a Singaporean Citizen or Singapore Permanent Resident. CPF Housing Grant for Family: The CPF Housing Grant is a housing subsidy (in the form of CPF monies) provided by the Government. The grant assists eligible first-timer family to buy an EC from the developer As home purchase is a long-term financial commitment, therefore it is imperative for you to consider and plan your budget effectively before purchasing a flat. These are some steps to take: Available cash savings CPF Monies Housing Loan (if required) CPF Housing Grant (if required)

Foreigners are allowed to purchase resale HDB flats and private residential property according to their financial abilities. Foreigners looking to purchase private residential property or landed property are still required to seek approval from the Singapore Land Authority prior to purchasing.

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Do bear in mind that if the property you are buying has a limited lease, it may be more difficult to finance the purchase using a housing loan. Generally, the shorter the lease period, the higher the interest rate of the loan will be. If you are planning to use your Central Provident Fund (CPF) savings to finance part of your purchasing of a private residential property, you must familiarize yourself with the limits on the use of CPF savings for residential properties. Visit the CPF website http://mycpf.cpf.gov.sg/Members/home.htm Buying an Uncompleted Private Residential Property If you own a HDB apartment or an executive condominium, make sure that you have fulfilled your minimum occupation period. You cannot purchase a private residential property until you have done so. If you are a non-Singaporean citizen and you intend to purchase a landed residential property, you must first obtain approval from the Controller of Residential Property under the Singapore Land Authority. NonSingaporean citizens include permanent residents. Visit the SLA website http://www.sla.gov.sg/htm/hom/index.htm If you are buying an uncompleted private residential property, it is essential that you check that the housing developer you are purchasing a residential unit from has a Sale License. Only housing developers with a Sale License are allowed to offer housing units for sale. When viewing a show flat, you should be aware that show flats may differ slightly from the actual units. In this case, you should check the specifications of the unit you are purchasing in the Sale and Purchase Agreement. You should also be thorough and check with the housing developer if the housing project will be affected by any public schemes and special conditions stipulated by authorities. The sale and purchase of a private residential property is only deemed complete when the housing developer has transferred to you the legal title of the unit. One important thing to note is that HDB does not allow for the buyer, the spouse or anyone listed in the application form to have ownership or a vested interest in other property, be it in Singapore or overseas. Applicants must not currently own or have disposed property within 30 months before the date of application and between the application date and the date of taking possession of the flat. HDB may grant an exemption but this is strictly on a case to case basis. If you are interested in seeking exemption, you must fill up a questionnaire and send it back to HDB. Fill in the questionnaire http://www.hdb.gov.sg/isoa072p.nsf/PC66VByFormID/EAPF00006 Page 9 of 30

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Singaporean buyers may purchase the below mentioned housing units only twice: a flat from the HDB; a resale flat with the CPF Housing Grant*; a DBSS flat from developer; an EC unit from developer.

*Only applicable for first-timer applicants If you have already bought two housing units, you will not be eligible to apply or be listed as an essential occupier in an application. For more information regarding HDB eligibility, visit the HDB website http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatEligibilitytobuynewHDBflat?OpenDocument Option to Purchase If you wish to purchase a property, you must obtain an Option to Purchase from the seller. An Option to Purchase is essentially a right to a property and acts as a reservation. As the intending purchaser of the property, you will be required to make a payment known as the booking fee, or the option fee, as a deposit of good faith. The option fee payable for a HDB unit is of an amount not exceeding SGD1,000 and the Option deposit does not exceed SGD5,000. This amount is inclusive of the option fee. Once an Option to Purchase has been granted, you or your representative should receive all necessary documents, including a duplicate of the Sale and Purchase Agreement, within 14 days from the date of the Option to Purchase. This 14 days includes Saturday, Sundays and any public holidays that may fall within the allocated period. If the buyer decides not to go through with the sale, he can simply allow the Option to expire. Only the Option Fee will be lost. During the validity period of your Option the Purchase, the seller is not allowed to offer the property for sale to other interested parties. You should be aware that the Option to Purchase obtained from a housing developer is only valid for three weeks from the date of delivery to you or your representative, and if you do not exercise your Option to Purchase within its validity period, it will expire and the seller is entitled to keep 25 per cent of the option fee. You will be refunded the remaining 75 per cent of the booking fee and the seller may then offer the property to other prospective buyers.

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All licensed housing developers are required to use the standard form of the Option to Purchase, which can be found on the Urban Redevelopment Authority's (URA) website. Any amendments to be made to the Option to Purchase must be approved by the Controller of Housing. Visit the URA website here. Please note that the Option to Purchase is non-transferrable. Therefore, all persons intending to buy a property together should be named as intending purchasers in the Option to Purchase. Only those named as intending purchasers in the agreement may exercise the Option to Purchase. After an Option to Purchase has been granted, any name changes in the agreement must be approved by the Controller of Housing. If you wish to exercise your Option to Purchase, you must sign all copies of the Sale and Purchase Agreement and return them to the housing developer, and make a down payment, which may be between five per cent and 15 per cent of the purchase price, within the validity period. However, the housing developer may also permit you to make the down payment within eight weeks from the date of the Option to Purchase. The standard down payment is 20 per cent of the purchase price, inclusive of the option fee. Sale and Purchase Agreement A Sale and Purchase Agreement is a contract for the sale and purchase of a property between a buyer and a seller. If you have been granted an Option to Purchase, you should have received a copy of the Sale and Purchase Agreement within 14 days from the date of the Option to Purchase. All licensed housing developers are required to use the standard form of the Sale and Purchase Agreement, which can be found on the URA website. Any changes to be made to the Sale and Purchase Agreement must be approved by the Controller of Housing and when this has been done, the housing developer is required to list all amendments made in a separate schedule in the contract, commonly referred as the second schedule. You should ensure that you make all necessary payments due to the housing developer on time in accordance with the payment schedule included in the Sale and Purchase Agreement, or you may be held liable for additional interest payments. If you do not settle any payments due within 14 days, the housing developer may deem that you have repudiated the Sale and Purchase Agreement and take the necessary steps to annul the contract. Once the contract has been annulled, you will be returned 20 per cent of the purchase price, but you will still be held liable for any outstanding interest owed to the housing developer.

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In the event of a dispute between you and the seller, you may wish to engage the services of a professional mediator to resolve the situation, or seek legal advice if the need arises. You cannot request for the Controller of Housing to intervene as this is outside of the Controller's jurisdiction. Payments Under the Standard Payment Scheme, you will make a total of 10 different payments. 1. The first payment to be made is the booking fee, which is typically between five per cent and 10 per cent of the purchase price. 2. After signing the Sale and Purchase Agreement, you will be required to make a down payment of 20 per cent of the purchase price, less the option fee. 3. Upon completion of the foundation work, you will be required to make a payment of 10 per cent of the purchase price. 4. You will have to make another payment of 10 per cent of the purchase price, following the completion of the unit's reinforced concrete framework. 5. Once the brick walls of the unit have been completed, you are expected to make a payment of five per cent of the purchase price. 6. Another payment of five per cent is due upon completion of the unit's roofing and ceiling. 7. After electrical wiring, internal plastering, plumbing and door and window frame installations have been completed, you will be required to make a payment of five per cent. 8. Following completion of the car park, roads and drains, you will have to make another payment of five per cent. 9. Upon receiving a Notice of Vacant Possession, you will be required to make a payment of 25 per cent of the purchase price. 10. On the completion date, you will have make payment on the remaining 15 per cent. Besides the purchase price, there are other costs which you are likely to incur such as property taxes and maintenance charges. If you are a non-Singaporean citizen, do note that you will be taxed differently from that of a Singaporean citizen, in accordance with the Inland Revenue Authority of Singapore's (IRAS) regulations. (Visit the IRAS website here.) Notice of Vacant Possession When the unit is ready to be handed over, the housing developer will issue you a Notice of Vacant Possession. The housing developer must also provide you with a copy of the Temporary Occupation Permit or Certificate of Statutory Completion as well as a copy of a certificate by an architect or a professional engineer, who can verify that all works have been completed in accordance with the approved plans and specifications.

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Defects There is a defects liability period of 12 months from the date you receive your Notice of Vacant Possession from the housing developer. During this period, the housing developer has an obligation to rectify any defects in the housing project which become apparent. You should inspect your unit thoroughly as soon you take possession of it. If you discover a defect, inform the housing developer in writing and request that it be rectified. The housing developer is obliged to rectify any defect within one month of receiving notice. If the housing developer is unable to rectify the defect within one month of receiving notice, you may notify the housing developer in writing that you intend to engage a third party to carry out the necessary repairs and provide the estimated costs of the repair works. You should not include any defects in this notification that were not mentioned in the previous notice to the housing developer. If any new defects are found, you should inform the housing developer in writing first before allowing a one-month period for rectification works. Following the second notification, you should allow the housing developer an additional period of 14 days to perform the necessary repairs. If the housing developer still fails to do this, you may proceed with the repair works and make a claim for the costs from the housing developer. Buying a Private Residential Property through a Private Treaty If you are buying a private residential property from an individual owner, it is advisable to engage the services of a solicitor. You will be required to obtain an Option to Purchase from the seller and in this case, you should be prepared to pay a booking fee of one per cent of the purchase price. The validity period of an Option to Purchase from an individual seller is considerably shorter than that of a housing developer's. You only have 14 days to decide whether or not to exercise your Option to Purchase. If you decide not to exercise your Option to Purchase, you will forfeit the booking fee. If you decide to exercise your Option to Purchase, you should be prepared to make another payment of four per cent or nine per cent of the purchase price, as agreed between yourself and the seller. Once this is done, you can allow your solicitor to help you complete the purchase of the property. This will probably take eight to 10 weeks, during which, you will be required to make the remaining payment of 90 per cent of the purchase price. Your solicitor will need to coordinate with the necessary financial

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institutions to finance the purchase, prepare the contracts and lodge a caveat on the property, among other things. You will also be required to pay a stamp fee to IRAS, which will be three per cent of the purchase price less $5,400, within 14 days of exercising your Option to Purchase.

Getting the best bargain

As with everything that comes with purchasing a home, do your research. Find out how much a specific type of residential property normally goes for and if you already have a particular town in mind, look up how much homes in that area typically go for. This will give you an idea of how much you are willing to pay for your new home and will help you plan your budget better. If you are handling negotiations on your own, you must know your material. Once you have found out how much homes usually go for in the neighborhood, use that as a gauge and do not exceed it. If you have a definite budget, stick to it. Be clear about what your needs are and after you have viewed a good number of homes, make a list of those which meet your needs best. The more homes you have that match your needs, the more bargaining power you have when it comes to negotiating price. Consider the amenities available to you if you decide to purchase this property. Is well serviced by the public transport system or do you have to take two or three buses to reach your workplace? Is there a Mass Rapid Transit (MRT) station nearby? Can you find food easily around the estate? If the amenities are not particularly appealing, you can use this as a bargaining tool to lower the price the home seller is asking for during negotiations. Try not to be turned off by homes that do not have a high number of home viewings. This does not necessarily mean that the property is not popular among prospective buyers. It could be due to the possibility that the price the seller is asking for that particular home exceeds the budget of a certain group of buyers. You should also take into consideration the likelihood that a home which is not viewed often might not have many offers for purchase. In that case, the seller may be more willing to negotiate terms.

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Affordability Calculator - How Much Can I Borrow?

This calculator estimates the maximum housing loan amount based on your annual income and ability to service the loan. As a general guideline, in Singapore you can borrow up to 35% of your gross income. However, the banks can be flexible with this in some cases. Example: Gross Annual Income (S$): 125000 Loan Term: 10 Years Interest Rate (%): 1.5% Maximum Percentage of Income to be spent on loan (%): 35% Monthly Debt Obligations (including student loans, auto loans, personal loans etc) (S$): 0 Calculation Result: Maximum monthly mortgage payment: 3,646 Maximum loan amount: 406,033

First Time Buyer Checklists

Home Hunting
Singapore provides a wide range of accommodation facilities in the form of public housing estate and private housing facility to support its huge local population and also the foreigners. Buying or renting the most appropriate apartment or house requires a lot of effort and consideration. An effective house hunt procedure can greatly help in getting the ideal property at competitive market rate. Before deciding on buying or renting a house one has to consider few factors that are the budget, location, type of house and amenities available. Types of Homes Housing facility in Singapore is primarily provided by the public housing facility under the Housing and Development Board. Over 80% of Singaporeans reside in these housing estates. These estates have access to schools, clinics, food outlets, supermarket, recreational facility and an excellent transport Page 15 of 30

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network at close proximity. Though an expatriate has to fulfill certain criteria, there are various schemes available for buying or renting an apartment in these HDB Estates. Private housing includes condominiums, apartments and landed property that are developed by private concerns. Certain guidelines have to be fulfilled to buy or rent such property. Location Guide Location of the house is of prime importance before deciding to own or rent a house. For this one has to consider various factors that are most convenient and suitable to oneself and one's family. These include closeness to one's work place, spouse workplace, kids' school, shopping area, food outlets and easy access to road and rail transport. Amenities Guide Depending on personal choice one has to consider all the amenities available nearby. Many housing estates offer world class amenities that comprise shopping malls, hotels, parks, entertainment and recreational facilities. Preference of having an MRT station as well as bus interchange can also be regarded as convenient transport facility before opting for a residential home. Price Guide The prospective buyer has to decide on the budget that he has set aside for investment in residential housing. Any expatriate has to see whether their company is providing for the housing facility or they have to bear it themselves. Thereafter one has to fix a reasonable range that can be $2,000 to $5,000 or other flexible range before opting for an apartment of personal choice. If the monthly budget set aside is of high range then one can opt for a luxurious flat with added facility of gym, swimming pool and tennis court. Sources (Agencies, Properties consultants, Brokers) Property consultants, brokers and agencies in Singapore make property buying and renting hassle free and easy. It also saves a lot of time and money of the prospective investor while looking for an ideal residential property. These consultants and brokers cater to all specific needs and requirements of property investor. Things that foreigners/expatriates should do After deciding on their budget, location, amenities and facility a foreigner or expatriate can consult a reliable agent or broker to meet their specific housing needs. Thereafter they can ascertain the value of Page 16 of 30

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the property in order to obtain a loan. Financial institutes and various banks grant loan to all foreigners after fulfilling certain criteria. Thereafter all purchase formalities and documentation has to be done. The buyer can also opt for inspecting the property before taking over the property. Conclusion Singapore's booming economy and a progressive real estate property market has led to an ever growing demand among property buyers. Foreigners and expatriates can make easy and cost effective purchases or rent an apartment by following these house hunting guides. These tips and house hunting guides should be considered and evaluated properly to obtain the most suitable apartment of your choice.

Tips on home viewing

Begin your research online. There are plenty of property listings available for viewing online. Some of these listings may even have virtual tours, so that you can narrow down your list of homes to visit. If necessary, engage the services of a real estate agent. Make sure that you select an agent who understands your purchasing needs and is willing to accompany you to view eligible homes. Before you go out to view a home, make sure you bring along a digital camera and spare batteries. When you start taking pictures of the homes you visit, be sure to begin each series of photographs with a shot of the front door, where the housing unit number is clearly visible. This will help you later to distinguish between the various sets of photographs you have taken. If it is a landed residential property that you are viewing, take a picture of the exterior of the house. Take notes as you visit each home. Note down any unusual details about the places you are viewing, especially features that you like or dislike. Be as detailed as possible. Check that the location of each home you visit is somewhat ideal. There should be a good range of shopping and leisure amenities nearby, as well as a clinic and a school, if you have children or are planning to start a family. The place should also be well serviced by public transport services, be it buses or the Mass Rapid Transit (MRT). When visiting each home, pay attention to its surroundings. For example, do you like the people living next door? You should ensure that you are comfortable living in that environment.

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After leaving each location, rate the home on a scale of one to 10, with 10 being the highest score. Once you have decided on a few options, review them again. You might spot some features which you didn't on your first visit that could determine your decision. While it is acceptable to take your time to review your options, do not hesitate too long, especially if you have already found a home that you like. Chances are, you are not the only one who thinks it's perfect and its seller may have already received a few offers for it.

Viewing Checklist for Buyers

Below link has the Viewing Checklist for Buyers and it is worth taking a copy of it when you go for viewing the house. http://media.propertyguru.com.sg/pdf/buyers-viewing-checklist.pdf

Getting the buying paper right for Resale properties

The good thing about hiring a solicitor and a property agent is that they will assist you in dealing with and preparing all relevant paperwork. This however, does not exempt you from getting involved with your own transaction. It is recommended that you educate yourself on what goes into preparing the documents before you hire a solicitor. A solicitor will typically assist you by acting in purchase, in mortgage and/or in the withdrawal of funds from the CPF board. There are several documents you will need to prepare beforehand; financial records, tax records and the legal description of your property including proof of house inspection. These are integral to the entire procedure and only by preparing the documents yourself or with the help of an agent will you be better equipped to understand the process of your transaction. Once you have all your documents in order, the solicitor will assist you in the contractual part of the transaction which is a simple two-step process. The first part is to offer the Option to Purchase' (OTP) agreement. There will be a good faith deposit of typically 1% of the purchase price for private resale property to be paid to the seller at the point of receiving the agreement. If you exercise the OTP, a payment of 5% - 10% of the purchase price, minus the deposit is expected. For more information, click http://www.dbs.com/sg/personal/homeloans/purchase-a-home/default.aspx Page 18 of 30

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For HDB resale flats, the deposit is normally $1,000. If you exercise the OTP, you will have to pay up to $5,000 minus the deposit. For further information, you can visit HDB's http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatOptiontoPurchase?OpenDocument The buyer may request to view proof of housing inspection at this point so it is prudent to have such pertinent information with you during the process at all times. The seller may also request to view the buyer's loan approval letters from the bank if they are planning to finance the purchase of the property with a loan. The OTP form entitles the buyer to contemplate his decision on buying the property and submitting the signed document to the seller within 14 days, failing which the transaction and deposit will be lost immediately. The seller will keep the deposit and is now free to offer his property to someone else. The OTP should also clearly state permission to inspect the property before completion of the sale. The buyer should check everything the seller has agreed to sell with the property. The seller is obligated to fix any problems before the buyer signs the Sales and Purchase Agreement. If you are selling a HDB flat, HDB authorities will inspect on your behalf and will check for any unauthorized renovation. If such things are found, the seller is expected to return the flat into a condition permitted by HDB before the sale can be approved. Some sellers may wish to bypass the Option to Purchase' mode by presenting buyers with a binding offer directly, known as the Offer to Purchase'. This document will be prepared by the solicitor or agent and it would state the completion date, price and any other conditions you may have. Upon accepting and signing the Offer to Purchase', a deposit of 5% or 10% of the purchase price is made to the seller. The Sales and Purchase Agreement is the second phase and in this regard, the solicitor will embark upon the necessary steps to complete the sale such as coordinate with the bank/CPF board for the mortgage and preparation of the contracts. The entire process will typically take up to 10 weeks to complete. As the solicitor generally takes over in the contractual stage to complete the sale, here are some things to know;

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A precise legal description of the property being sold must be included in the real estate agreement. This description should be as detailed as possible and should make mention of the legal identification of the property.

The purchase price should be explicitly stated in the agreement, by appearing in both text and numbers so as to avoid potential confusion.

Information about the mortgage used by the buyer should also be present in the agreement, along with any contingencies. Contingencies should be declared, especially with regard to loan approval.

The agreement should include a specific closing date, by which both parties technically must seal the deal. An extension to this deadline cannot be made unless both parties agree.

The full and correct names of both parties must be stated clearly. This includes hyphens, any designations and aliases which either party might be using. While seemingly trivial, this is actually rather important.

If you are considering on purchasing a resale HDB flat for yourself, HDB has prepared a list of eligibility criteria you have to meet.

Interviewing the Agent

Assuming you have gathered a list of agents to interview, the first thing you need to ask them is how long have they been in the business. Most Singaporeans attach age and seniority with technical prowess and ability and while that may be indicative of the agent's capabilities in some cases, at times, it might prove detrimental to the cause. Experienced agents with several years in the industry may be knowledgeable but at the same time will they, being as experienced and sought after as they claim, have enough time to dedicate to you. When an agent is beset with multiple offers to help sell or procure a house, he has the

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advantage in picking which property he wishes to deal with first and this is usually the one where he stands to make the most money out of, the quickest. On the other side, hiring a less experienced agent might mean he is more dedicated to you, but he might end up projecting desperation in selling your property due to lower prospect opportunity. This is not to say that every experienced agent is nonchalant and every inexperienced agent is anxious. Interviewing them carefully will determine if either group works for you. Remember that you want an agent whom listens to you. Knowledge can be acquired easily enough but if an agent only cares about his commission and not about your needs, no amount of expertise will make your life easy. The most important question to ask the agent is how they intend to market and/or strategize your needs. As a buyer you will want to know the parameters the agent will be using to search for your new home and just how many homes you expect to see before you find something you're more likely to buy. Other questions to ask are if you will be competing against other buyers and if the agent will be helping you to handle multiple offers. As a seller, you need to first and foremost establish how the agent intends to sell your home. Does he have a direct mail campaign and does he have a sample flyer he can show you? Also, does he intend to market online and if so, where and how often will he be advertising. You would also want to check if he will be advertising through other media such as newspapers and the frequency and/or time of the advertisement. If the agent comes with a good track record, you are well within your means to request for references. Most agents will receive written commendations from buyers or sellers they have helped and some are quite proud to show off the good work they've done. Be wary of agents who take offence to this question. Just because you hire an agent to do most of the legwork for you, it does not mean that you merely sit back and reap the harvest. Ask the agent in your interview process if he will let you review all the documents before you sign. This is exceptionally important because you should be involved in the entire process even if you are not the one organizing the paperwork. A good agent will acquiesce to this request and will offer to walk you through it. This is a sign that the agent is adequately versed in the legalities surrounding your transaction. At this point, you can discuss his fees and negotiate. As most agents in Singapore receive anywhere between 1-2% commission, negotiation is not really necessary. What you should ask without a doubt is the kind of guarantee the agent can give you pertaining to your sale/purchase. Typically you want to specify a fixed period for the agent to do his marketing/sourcing and provide you with a buyer or a house

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you can purchase. Both you and the agent will determine just how much time is needed to market and produce results. Once you have settled all the intricacies of how you and the agent are going to be working together, now is the time to mentally align those principles with a couple key questions. Ask the agent to define himself and how he stands out from his competition. By asking this question you are trying to get a feel of where the agent thinks he stands on a business and moral standpoint. Watch out for agents that deliberately belittle his competition to make himself look better. As a customer, you want an agent who is honest and trustworthy, assertive, an excellent negotiator, a good communicator, friendly, intelligent, calm and collected and most importantly, readily available through phone or e-mail at any time. The way the agent describes himself and the tone he uses is critical. Does he sound confident or condescending? Was he unsure of himself or did he seem uninterested? In addition, if an agent declares himself to be all or some of the above, he will constantly be psychologically aware of his promise to you, thus in most cases, ensuring his cooperation. Last but not least, ask the agent if there is anything else you should know which he has yet to tell you. You want an agent who will take his time with you and give you good advice as well as maintain honesty throughout. If the agent spends more time posturing and boasting, chances are you do not want to hire him. If he is thoughtful and answers your question objectively, then perhaps you can add him to your shortlist. It is possible you may have more questions to ask than what has been covered here and you should. Do not think that just because an agent makes time to speak to you in the beginning that you are expected to enlist his services. You are by no means obligated and you should take your time to evaluate a few agents before deciding on the best one for you. Remember that you will be dealing with hundreds of thousands of dollars, potentially millions of dollars and you want someone who has a mind for the business but most importantly, a mind for your needs, to back you up.

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Moving into a new home

Moving into a new house is a chaotic and busy time. Many people get anxious because there are so many things to pack and so little time to do it. The moving process can also be expensive. In this section, we offer some tips on what you should do before you start moving and how to go about hiring the best movers. Be organized Write down all the items that you intend to move to your new place on a notepad and keep it somewhere you can find it. Start packing these items early so that you save time for other tasks closer to the moving date. For those unwanted items, organize a garage sale and sell them off at discounted prices. This is a good way to make some extra cash. Get packing supplies Collect lots of discarded boxes and buy some strong adhesive tape to pack the items so that the contents don't fall out when transporting. Use newspaper or bubble wrap to cover breakable items like glasses, plates, paintings and sculptures before placing them in the box. Avoid confusion Each family member should have their own box to place their personal belongings inside. Examples of items they can put inside include bed sheets, towels, toys and stationery. Ask them to label the boxes clearly so that they can retrieve it easily. Choose your movers wisely Make sure you get good movers who are professional and responsible because they will be handling your most prized possessions. Do your own research. Check the yellow pages for moving companies. Call them up and set a time and day for them to come to your home for an on-sight inspection. This is to help them quote a price. Don't just hire the first mover who has given you a quote. Call a few more companies so that you can compare prices and services. In addition, ask family and friends for recommendations of good movers. A good moving company will take care of your personal belongings and will help pack and unpack electrical items such as computers, televisions and light fixtures.

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HDB flats guidelines: Do's & Don'ts

When you choose to live in a Housing Development Board (HDB) flat, you are making the subconscious decision to live with many strangers as neighbors. It is part of the old HDB's initiative in continuing community growth after Singaporeans were moved from their kampongs and cramped living conditions into HDB flats. That community spirit was crucial to the on-going development of Singapore as a young nation as it was being populated with people from varied nationalities and beliefs. Fast forward to the present and while that kampong spirit may have dwindled in some communities, the measures put in place by HDB to secure a relatively harmonious living condition in the flats continue to be in effect. Over the many generations, these rules have helped shape and reinforce the safe living conditions enjoyed by Singaporeans of different races and cultures. However, with the influx of foreigners who are taking up Singapore Permanent Residency status, these rules have never been more important. Moving to a different country is scary and this can get rather overwhelming for the New Citizen who after securing his HDB flat, suddenly finds himself confused with all the Do's & Don'ts. The rules put forth by HDB, fortunately, are basic considerations everyone should observe when living in any sort of settlement. Failing to comply with any of these rules can and most probably will get you in trouble with HDB so it is best to pay careful attention to them. Do not urinate in the lifts: You would think this is common sense, but obviously it's happened enough times for HDB to enforce this ruling. Lifts are public property and it is used by the hundreds of people who live in a single flat. Urinating in the lift is not only inconsiderate but disgusting. There are security cameras in place in most lifts now so it will be easy for HDB to catch perpetrators. There are no exemptions to this rule so even if your child has to go, make sure he waits until you are home. Keep common areas free of obstruction: Common areas include lift landings, corridors, staircase landings and any other area where human traffic is constant. This is especially important if you are moving big and bulky objects from the void deck up into your apartment. Do not stack all your items at the lift landing where you end up blocking other people from walking or taking the lift. Also, do not display large and obstructive items along the corridors. Very big potted plants with overgrown weeds are considered obstructions as well as a hazard as they may be breeding grounds for mosquitoes and other undesirables.

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Wet laundry: HDB does not allow you to hang wet laundry on the bamboo poles or dripping mops outside the house. After clothes are washed, make sure they stop dripping before you hang them out to dry. Dripping water causes an inconvenience to people walking through the flats. It is also a safety hazard as people may slip and fall. You may also ruin the clothes of your neighbors living on the floors below you. Garbage: Old flats are equipped with a rubbish chute while residents of new flats have a shared chute usually near the lifts on their respective floors. It is required for you to bag all rubbish before you throw it down no matter the type of flat you're in. Also, do not throw burning items down the chute as this will become a fire hazard. Noise: Keep your noise levels down. Noise is derived from but not limited to a house party, television, radio or even faulty air-conditioning. Most neighbors are tolerant of some noise, if it's an occasional party or a gathering during festivals but if the noise levels are an everyday occurrence, your neighbors are at liberty to lodge a formal complaint to HDB if you refuse to turn it down. Be considerate and lower your volume especially in the evenings. If you are carrying out renovations, you have to abide by HDB's rules. Refer http://www.hdb.gov.sg/fi10/fi10324p.nsf/w/HomeRenoSupervise?OpenDocument Vandalism: This is illegal everywhere in Singapore. Vandalism includes graffiti, destruction of public property and any unauthorized changes' made to government property. This offence is punishable by fines, imprisonment or both. Do not throw objects from your flat: Any object thrown from a height high enough can become a lethal weapon. As the amount of human traffic is high around HDB flats, do not throw anything out the windows or you might hit someone and injure them fatally. Pets: Ensure your pets do not disturb your neighbors. If it is a dog, make sure it does not bark too often. Muzzle it if necessary, especially at night. If your pet has to be caged, keep the cage indoors and not outside your apartment. This is especially important for bird cages. If you are walking your pet, keep it on a leash and when it does its business, it is your responsibility (also legally obligated) to clean it up. Dangerous displays: Keep your plants off window ledges, balconies, parapets of common corridors and anywhere else where it may be easy for them to get knocked off. Do not attach laundry brackets to the parapet or hang potted plants above the parapet. Plants can be neatly displayed along the corridor on the floor but should not obstruct the walkway. Bamboo poles are to be properly placed in the appropriate location, usually out the kitchen window. Do not attach them in a criss-cross manner. It is unfortunate that HDB had to enforce these rulings over time as it is the responsibility of the resident to make sure that he/she is not an inconvenience to his neighbors, not HDB's.

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However, HDB is the overall landlord and while they would prefer not to mediate, they will if the situation escalates. But practicing good etiquette should not be a result of rules and regulation. It is the responsibility of every person, regardless of whom you share living areas with.

Handling neighbor disputes

One way to force people into accepting individual faults and quirks is to make them live together. Eventually, familiarity will provide the buffer needed to ignore most things we may find offensive about others. Unfortunately, even the closest of friends get into fights. What more for neighbors who live in moderate tolerance of each other while being packed like sardines in the new flats? This is especially so for expatriates and New Citizens who are not used to the way of life in Singapore and the easy-going tolerance we have perfected from years of living together in a multi-racial society. To help settle neighbor disputes in the event that it cannot be resolved amicably between the two concerning parties for whatever reason, HDB has prepared a couple of avenues for discourse to continue with an external governing party. The Resident's Committee and the Community Mediation Centre (CMC) can assist you if your neighbor is refusing to come to terms with any grievances you may have with them. The CMC can be contacted at 6325 1600. Additionally, you can e-mail mlaw_hq_cmc@mlaw.gov.sg for further assistance. If the situation continues to worsen and you feel you have to lodge a formal complaint, you can do so in writing to the Magistrate's Complaints Counter at the Crime Registry, Subordinate Courts. In most cases, these types of domestic issues are handled by the Neighborhood Court which deals specifically with neighborly disputes. The Magistrate can do one of three things: 1. It can direct your complaint to the police 2. Dismiss it if the grounds that the complaint possess insufficient information such as the offence not being disclosed in the letter Page 26 of 30

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3. Request you and your neighbor to attend a mediation session before the Magistrate or Mediator If you and your neighbor end up attending a mediation session, two things can happen: 1. You prepare charges against your neighbor if the mediation fails so that a summons may be issued against him/her 2. The Magistrate Complaint may be withdrawn if the mediation session is successful in resolving the situation For more information on how to lodge a Magistrate's Complaint, check the below link: http://app.subcourts.gov.sg/criminal/page.aspx?pageid=10028

Singapore Property Auctions

Another way to buy a house in Singapore is through Property Auctions. The main reason why home sellers sometimes resort to auctions to sell their properties is because it can lead to a quick sale. Buyers who show up at property auctions typically aren't the sort to take a long time to deliberate on their decisions as they would not bid on a property they have no interest in and the time taken to sell a property through an auction instead of through a real estate agent is considerably shorter. The seller should be prepared to: Provide details of the property you are selling Sign an Auction Agreement with the auctioneer Pay an administration fee upon signing an Auction Agreement, usually in cheque Page 27 of 30

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Confirm the reserve price of your property with the auctioneer Provide the auctioneer with a copy of your identification card to prove your ownership of the property Appoint a solicitor to assist you in preparing the necessary documents Arrange for the auctioneer to perform an inspection of your property and take photographs, as well as hold home viewings of your property for prospective buyers Pay the auctioneer a commission fee of one per cent upon the sale of your property

Certain aspects of these procedures may vary with auctioneers, especially the administration charges. However, these are general procedures which are common among auctioneers. When providing an auctioneer with details of a property, it is preferable that sellers include a professional valuation report. Sellers must also appoint their own solicitors to assist them in preparing the necessary documents for auction, such as the Particulars and Conditions of Sale. A copy of this contract must be sent to the auctioneer at least five days prior to the auction date. In the contract, sellers must confirm the reserve price, which is the price that one is willing to accept for his or her property. Once a seller has confirmed the reserve price, the auctioneer is not permitted to sell the property at a price lower than the reserve price. If bids meet or exceed the reserve price, the auctioneer may sell the property to the highest bidder. Prior to the auction, the auctioneer may advertise a seller's property by conducting home viewings for prospective buyers. The auctioneer will first carry out an inspection and take photographs of the property, following which, interested buyers will be invited to view the home. Once all home viewings have taken place and the seller has been provided with feedback from visitors, he or she may choose to revise the reserve price if necessary. However, any adjustments to be made to the reserve price must be submitted to the auctioneer in writing at least three days before the auction date. The revised reserve price will be kept confidential. As these are mainly general procedures which take place during property auctions, there are aspects which may vary among auctioneers. Therefore, if you are interested in selling your property through an auction, it would be for the best to confirm the procedures you have to undertake with the auctioneer.

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Buyers Guide to Singapore Property Auction

A closer look at what happens in Singapore knock down sessions and what a buyer should look out for. Okay so you looked at my site and theres this magnet property that youre keen in in one of the latest auction list. Inspecting the property before auction day Theres always details on the Auction List on the person-in-charge of the property. You could arrange with him/her to view the property prior the auction before deciding whether to bid for it. This is the best time to also do your full due diligence on the property such as the state, the size, the maintenance cost etc. Remember, its always a caveat emptor in any real estate transactions. Seek Legal Advice Like arranging for inspection prior to auction day, you should also seek legal advice should you be really interested in one subject property. Relevant legal documents are always available before an auction for your solicitors to review. Also you could check with your lawyer on the legal aspects on the eligibility of your transaction (e.g. foreigners are not allowed to buy landed unless with LDAU clearance) Always Get These Things Ready Before Auction Once the property is being knocked down to you, you will have to prepare a deposit of 10% of the purchase price and sign the sales and purchase agreement, which is a legal binding document to complete the sale and pay up the balance of 90% upon the completion, which is usually 10 weeks later. So cheques (two in case of GST), your identification card and/or Power of Attorney (POA) if youre representing someone. Stay in Auction Room once bidding starts Some properties sell quickly and you may find that while you have stepped out, the property that you are interested in was sold. Methods of Bidding You could raise your hand, you could show your hand, you could do anything as long as you get the auctioneers attention. After the Property is Hammered Down.. As soon as the property has gone down the hammer, the contract will be drawn up. You only need to furnish the auction staff with your identification card, pay the 10% deposit and you will promptly receive a memorandum of sale the same day. Now go Get Your Property! Congratulations. Now you know what happens in Property Auctions. Now go on, experience your first hand auction experience by heading to the latest property auctions today (:

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Advantages of Property Auctions for Buyers

There are 3 major advantages to buying your property at a property auction. They include: Better investment opportunities. Interested bidders are given the opportunity to buy investment properties which could have been offered to a selected number of buyers through a private tender or private treaty. More organized. Legal documents pertaining to the sale of the property would be available before the day of purchase for the buyer's inspection. Furthermore, the contracts of sale can be signed and can exchange hands on the day of the property auction. Hassle free. All offers on a property would be done publicly, allowing buyers to be aware of what others are offering. There is no need for the buyer to worry about any sudden surprises cropping up at the last minute, such as the seller backing out.

Property Auction Buying Tips

Buyers do not have a particular procedure to follow unlike sellers, but there are several things that buyers should keep in mind when entering into a property auction, such as: Buyers must ensure there is enough money to make a deposit if the buyer is successful in a bid. A deposit of 10% of the sale price is expected on the day of the property auction. The other 90% would need to be paid after the completion of sale, which is around 10 to 12 weeks. Payment can be made by cheque. Buyers must secure a loan before the property auction date. Take into consideration the time it takes for a loan to be approved, because backing out for not getting the loan in time could be costly! Looking at similar properties in the area and getting their price range prior to the property auction. This would give buyers a reasonable price estimate for the property, so buyers won't feel like they overpaid. Being careful before making a bid. It's easy for buyers to get caught up in the bidding frenzy and overbid. Buyers must set a reasonable price, one that's affordable and stick to it. And if there are many buyers vying for the same property, hold out until the bidding slows down. This way, the buyers won't be constantly outbidding each other.

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