Singapore Real Estate Agencies

How to Avoid Hurdles While Buying Property in Singapore

Buying a property always comes with a few added risks. But these are not unavoidable. If one proceeds thoughtfully, the process will be hassle-free.

The Property Agent

The first major step is to consult a Sg property agent. The experience of the agent is required to predict the market. The agent will guide you through the twists of all the legal procedures.

After the agent has prepared a list of properties suiting your needs, it is necessary to visit the places. Observe every aspect and move ahead only if you are absolutely satisfied with it.

Sg property

Sg property

Option to Purchase

Ask for an option to purchase from the seller. It gives you 14 days to consider buying the property without having to worry about it getting sold. It also allows you to take a last look at the property before the transaction. It can be procured by paying 1 percent of the total value of the property. Payment has to be done in cash.

Filing for Property Tax

To avoid legal hassles after buying the property, one must file for Property Tax. It has to be done annually. The amount is around 10 percent of estimated rent value. If you want to use it yourself, the calculation is done with ‘annual value’ in place of estimated rent. In such a case, a concession of 4 percent can be asked for.

With these few safeguards, your dream Sg property will be in your hands in a short time and without any unnecessary hassles.

May 22, 2014 at 10:01 am Comments (0)

Benefits of Using Real Estate Agent

Who is a Real Estate Agent:

A real estate agent or a realtor is the one who helps you out in buying or selling your Singapore real estate or Singapore condo. They are experienced people who will know what is the best for you if you are a novice in the matter. Not only that there are a number of benefits that you are bound to get when you are using a realtor for your Singapore condo transactions.

What are the pros?

They help in simplification of the process if it is too complicated. Yes, he will help you in the understanding of the whole thing and clear it out to you whether the deal is suitable for you or not.

Saves you from getting exploited- Now that is a catch, isn’t it? If you are going to finalize a deal without having a specific idea on the subject then it is possible that you will be exploited by the other party. But if a realtor intermediates then it is very unlikely that these things will occur.

He does the talking for you. If you are the sort of a person who is not good at communicating, then having a realtor definitely solves the problems.

He reaches the goal on your behalf- All you have to do is to just let him know what you expect and then he will finalize the deals all by himself keeping in mind your requirements. Thus, you always have the option to sit back when he does the work for you.

May 19, 2014 at 9:52 am Comments (0)

This post provides some pointers when picking a mortgage during a low rate of interest climate, particularly in Singapore.

Prevailing Interest Rate Environment

Be aware of the prevailing rate of interest situation. During a low rate of interest environment, a bank loan will usually offer lower interest when compared with the HDB concessionary loan.

For example, last year when interest rate in Singapore dropped to an all-time low, some borrowers of banks home loans enjoyed rates of less than 1% per annum (p.a.). In contrast, the rate on the HDB loan stayed at 2.6% p.a..

However, for a bank loan, there are many kinds. So which should you select for highline residences?

highline residences

highline residences

A fixed-rate bank loan in Singapore has its interest rate remaining unchanged for the first 3 to 5 years; after which the rate will be pegged at a reduction below the financing institution’s board rate or floating rate.

 

During a low-interest rate environment, a variable-rate loan typically has lower interest rates relative to your fixed-rate loan. It is because SIBOR or SOR is depressed.

Hence, as a rule of thumb, go for a variable-rate loan during a low-interest rate climate if you’re searching for interest-economy. However, there maybe other concerns in choosing a mortgage loan.

A varying-rate loan is sold with more uncertainty in the monthly repayment sum. This may not be ideal for individuals who want stability in their own monthly monetary outlays. In such cases, a fixed-rate loan or a HDB loan maybe more appropriate; as the former provides the same rate during the fixed interval. For the latter rates have stayed constant for over a decade.

Yet, uncertainty in monthly repayment sum for HDB loans remains potential. For example, in the 1990s its rates presented more unpredictability (Source: CPF, “Historical HDB Concessionary Interest Rate”).

Besides monthly repayment instability, another drawback of a variable-rate loan is the chance of an interest rate spike when interest rates begin to swing upwards. When this occurs, the rates on a variable-rate loan can surpass a fixed-rate loan.

Conversely, you are able to select a variable loan with an interest rate cap, but there is a catch. The spread on these loans are higher than for ordinary variable-rate loans.

The other interest-rate cap loan available on the market is the DBS Mortgage Rate Protector, which spread stands at 1.15% or 1.25% with a DBS Mortgage Insurance.

Ultimately, whether a variable rate loan is for you will depend on how savvy a borrower you are (for instance you are able to time the variable-rate loan such that your are from the lock-in period when rates increase, so you can refinance to a more affordable loan), your risk profile, and whether the benefit of interest-economies outweigh the instability in monthly installment.

The guidelines provided in this post should not be substituted for professional guidance. Do talk to a professional mortgage adviser if you’re planning to take a fresh loan or refinance. Singapore’s mortgage consultancy usually will not charge for home loan guidance.

March 25, 2014 at 8:00 am Comments (0)

Singapore Real Estate- Buying Procedure

Why you should be Careful?

The buying procedure of Singapore property is generally quite complicated but if you follow the methodical steps then they might not seem as complicated as they look. The buying should be systematic in order to have the transactions neatly. So here are some steps that you should abide by to buy your desired property.
Things to do:

Go for a single agent: This is suggested so that you do not get confused by different working patterns of different realtors. Choose the one who has experience and can help you in the best manner.

Decide relocation and the budget first- This saves time because you do not have to roam about looking at estates with unfavorable locations and prices which you cannot pay. Tell these details to your realtor so that he may take out the best deals suitable for you.

Pay for the Buyer’s Stamp Duty and the Additional Buyer’s Stamp Duty, as it is a part of the procedure.

Offer to purchase- Do this with ample time in and so that you can go for negotiations. In this way, you can save up a bit. When both the parties agree promise the deal and get the final procedure started.

Then apply for the loan to pay the lump some money to grab your Singapore Property and then, go for the transactions with the seller. A receipt must be taken from the person who is selling for security reasons.

January 20, 2014 at 9:59 am Comments (0)