What is the Cost of Buying a House in Singapore?

Suppose you are living in Singapore and planning to buy a house there. Well, it’s not easy to get a home in Singapore as Singapore is among the most expensive countries. Singapore’s real estate market is ranked amongst the top 10 most expensive worldwide. As a result, only a few people can afford to buy a house without the help of a loan.

You also need to know the other expenses you will need to spend on your house, such as renovation, furniture, monthly utility bills, etc.

Some essential costs you need to know.

You will be surprised to know that the price of the house that you know is not the actual price, the actual price of a house includes a lot of hidden fees that you need to know, and these are the following:

Buyer stamp duty: This is a type of tax that you need to pay on the Sales and Purchase Agreements (S&P) or Option to Purchase (OTP). This amount depends on the percentage of the market price of your property or the price at which you buy it (depending on which amount is higher).

Conveyancing fees: This is a legal fee that the legal firms charge for any work done; this fee starts from S$1,800.

Additional buyer stamp: This additional buyer stamp is not paid by every buyer. If you are buying your first property in Singapore, this tax will not be applied, if you are buying a second property, then this tax is applied, and you will be charged 12% on your property purchase price.

Valuation fees: The valuation fees depend upon the value of the property. Suppose you buy a loan from a bank and release funds to purchase your property, then they will perform a valuation.

Commission of Agent: If you hired a property agent to buy a property, he would need a commission of 1% of the price of your property.

Interest on loan: If you are taking a loan to buy a property, then thousands of dollars will be the amount you have to repay. So it is suggested that you find the best possible interest rates and loans.

Insurance of homeowner: If you are going to get a loan from the bank to purchase a house, you need to get a homeowner’s insurance. Most banks require homeowner insurance to keep their investments safe in any condition of fire or flooding. It is a type of security that a bank asks from a person.

How much it costs?

There is a significant difference between the prices of HDB or private property. For example, buying a home in Singapore costs around S$400 and S$2000 per square foot. So if you are thinking of buying an HDB apartment of 400 square feet that includes one bedroom and one bathroom, you need to pay from S$200,000.

On the other hand, an executive apartment costs an average of $590,000. The price of buying a house greatly depends on the location of the house. If you are thinking of buying a private property, then it is going to be costlier.