Advertising in Property Web
For property salesperson (commonly known as agents), the respective costs for advertising can be found via this link http://propertyweb.sg/agent/registration
However, do note our trial-period promotion which pays you $5 (in the form of free credits) for each new launch, resale and rental advertisement posted. New Launch slots will also be FREE.
For owners trying to sell or rent out their property on their own, the respective costs for advertising are $50 for 30 days. Unfortunately, the trial-period promotion is only for property salespersons.
New launch slots enables property salespersons, from the same developer-appointed agency, to be on a rotation basis when advertising for a particular new launch in our portal.
We all know that new launch advertisements often clutter up property portals and so, we came out with a revolutionary method of having one appointed salesperson post the new launch advertisement, and the others from the same agency share the contents of that new launch advertisement.
Whenever a user searches for a new launch property, each slot will enable the salesperson to have their contact details appear once in each rotation cycle. The salesperson will also own a specific URL for the new launch advertisement to do additional internet marketing.
No, we do not require property salesperson to pay any joining fees.
Property salespersons are encouraged to advertise in our portal. By having a membership fee, we discourage them from posting advertisements. This decreases the advertisements the portal has and therefore does not give users the largest possible property database to search from.
We also understand that a yearly membership fee will burden property salespersons financially, especially new and inexperienced ones. We are committed to helping all property salespersons serve their clients best. From this pay-per-use scheme, we can not only relieve the burden of high advertising costs, we can also reduce spam advertisements, thereby giving all advertisers a level and fair advertising platform. New and inexperienced property salespersons can also make use of our free features to gain leads and kick-start their property career.
Unfortunately, no. This is because transactions of the purchase and refund of paid credits incur huge and complex charges from our payment gateway provider.
However, you can transfer your paid credits to another salesperson who is registered with PropertyWeb.sg. To discourage frequent transfer of paid credits and adding extra workload to our administrators, we will charge a nominal fee of $5 per transfer to each salesperson, which will be deducted from the balance of your paid credits.
You may inform us via our Contact Us form with regards to closing of account and transfer of Paid Credits.
Condo & Private Apartment Questions
Dual key refers to the idea of having two homes sharing a common foyer in a single title. Often, dual-key apartments consist of a studio and another full-size home such as a two-bedroom apartment. Below is an example of a dual-key home's floorplan:
The share value of a property is a figure that represents the proportionate share entitlement assigned to each strata unit in the same development. The purpose of the share value is to determine the amount of shares each owner has in relation to the other owners in the development.
What does share value represent? First, the share value determines the amount of contributions for maintenance that an owner has to pay to the management corporation of the estate for maintaining the common areas in the development. Second, the share value of a strata lot determines the voting right of a unit owner. The higher the share value an owner has, the more voting rights he or she has. Third, the share value determines the share that an owner has in the common property, which is jointly owned by all the owners in a development.
(Quoted from the article entitled 'Strata Living In Singapore - A General Guide' https://www.bca.gov.sg/bmsm/others/strata_living.pdf)
Therefore, before purchasing your private property, do check with the developer or MCST what is the share value and your maintenance fee with respect to the unit.
Yes. A maximum of 3 dogs are allowed per private (non-HDB) premise. You have to obtain special permission from AVA to keep more than 3 dogs. You are advised to check with the MCST of the condo/apartment on the by-laws pertaining to pet ownership.
Developers are required by law, under the Housing Developers Rules, to provide information such as drawn-to-scale unit floor plans and the floor area for the various spaces within a housing unit, including bedrooms, balconies and air-conditioner ledges.
If such information given is unclear or appears incomplete, developers are obliged to clarify and to furnish the information, as requested, to prospective buyers.
With the recent introduction of new guidelines on private enclosed spaces (PES) and private roof terraces, semi-outdoor spaces like the PES and private roof terraces in new condominium and flat developments approved on or after Jan 12 are now counted together with balconies as part of the gross floor area (GFA) allowed for the development.
Coverings over PES and private roof terraces as well as screenings on balconies are allowed in these new developments if the coverings conform to designs that have been pre-approved for the development.
The management corporation strata title (MCST) can also use the pre-approved designs to guide home owners who wish to install the covers.
For developments approved prior to Jan 12, the PES and private roof terraces were not computed as GFA.
Home owners planning to cover such areas must first seek the necessary endorsement from the MCST before making a submission to the Urban Redevelopment Authority (URA).
On receipt of a submission endorsed by the MCST, the URA will then assess such requests on a case-by-case basis, taking into account the extent of the proposed cover and the impact of the proposed covering on the rest of the development.
This excerpt is a reply written by Han Yong Hoe, Group Director (Development Control), Urban Redevelopment Authority, entitled 'Queries on enclosed spaces, floor area, SOHO: URA replies"
Link to full article: https://www.ura.gov.sg/uol/media-room/forum-replies/2013/jan/forum13-02.aspx
The condominium is one of the most common type of private estate in Singapore. Compared to public housing, it is recognised by its provision of common facilities such as private swimming pools, tennis courts, gym and the presence of security guards on duty.
While the definition of a condominium is pretty similar to what an apartment estate consists of, the key difference lies in the total land area of a condominium development which needs to be at least 4,000 square metres or larger. There is also a lack of facilities(or less) compared to the condominium.
In terms of eligibility of purchase, there is little difference between the two and no restrictions on foreign ownership.
This exerpt is from an article entitled "6 types of private property in Singapore", written by
Unfortunately, no. The use of private property for accommodation of less than six months was legislated as illegal in Singapore on Monday (Feb 6), making it unlawful for owners to rent out their homes via online homestay networks such as Airbnb and Roomorama.
Such short-term rentals of private property were already prohibited under guidelines by the Urban Redevelopment Authority (URA) and those who flout the rules face up S$200,000 fine or jail for up to a year if a private residence is rented or sublet for less than three months. The same penalties will apply going forward.
This exerpt is from a Channel Newsasia article "Short term rental of Private Properties illegal, but govt mulling alternatives" written by Justin Ong. For full article please click on this link: http://www.channelnewsasia.com/news/singapore/short-term-rentals-of-private-property-illegal-but-govt-mulling/3496786.html
HDB Questions
Build To Order (BTO) is a Housing and Development Board (HDB) flat allocation system that offers flexibility in timing and location for owners buying a New HDB flats in Singapore. Eligible buyers planning to shift into a new HDB apartment in the near future, can apply for apartments in their preferred location from specific sites launched. Tender for construction will be called only if the number of applicants is at least 70% of the number of apartments in a specific contract (50% since 2011), otherwise, the project is not built.
The waiting time for new flat applicants under the old Registration for Flats System (RFS) is relatively short because flats are built ahead of demand. In comparison, the new BTO system requires a waiting period of about 3–4 years instead as such a system removes the need for the government to make projections ahead of demand. For eligible flat buyers in urgent need of accommodation, they can ballot for leftover units that are reintroduced into the market, Sales of Balance flats (SBF).
Design, Build and Sell Scheme (DBSS) was introduced by the HDB in 2005. Flats built under the scheme were meant for public housing and developed by private developers. They were built with supposedly better designs and mostly in matured estates such as Tampines, Ang Mo Kio and Bishan. The prices for such units are generally higher as compared to BTOs. The DBSS has been suspended due to the lack of interest from buyers.
Source: Wikipedia
For further information, visit https://en.wikipedia.org/wiki/Build_to_order_(HDB) and https://en.wikipedia.org/wiki/Design,_Build_and_Sell_Scheme
Unfortunately, cats are not allowed to be kept as pets in a HDB flat. According to HDB, cats are generally difficult to contain within the flat. When allowed to roam indiscriminately, they tend to shed fur and defecate or urinate in public areas, and also make caterwauling sounds, which can inconvenience your neighbours.
For more information, please visit http://www.hdb.gov.sg/cs/infoweb/community/neighbourliness/being-a-good-neighbour/keeping-pets
You can only keep 1 dog from the list of approved breeds in your flat.
To know what are the approved breeds, please visit http://www.ava.gov.sg/docs/default-source/tools-and-resources/resources-for-businesses/approvedsmallbreed.
There are three main upgrading programmes for HDBs. They are 'lift upgrading programme (LUP), home improvement programme (HIP) and Neighbourhood renewal programme (NRP)'.
The LUP upgrades lift services to achieve direct lift access on every floor where feasible, thus enhancing residents’ convenience.
The HIP helps you resolve common maintenance problems of ageing flats such as spalling concrete. HIP works are carried out in a systematic and comprehensive way to minimise inconvenience to you.
The NRP focuses on block and precinct improvements, and is fully funded by the Government.
You can read more about these upgrading programmes here: http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/sers-and-upgrading-programmes/types
Source: www.HDB.gov.sg
Generally, the most crucial points to take note are:
- Engage only an HDB Registered Renovation Contractor to carry out the renovation, including those works that do not require HDB’s approval
- All demolition and hacking of walls (be it partial or complete) require HDB’s prior written approval. The approval ensures that any proposed demolition/ hacking work will not affect the structural integrity of the building and compromise public safety. If the structural integrity of the building is affected, it may potentially endanger the safety of your household and your neighbours
- Do not instruct workers or any person to carry out demolition/hacking works that have not been approved by HDB in writing
- Comply strictly with the permitted time stipulated by HDB so as not to inconvenience your neighbours
For more information, please go to http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/renovation.
Source: HDB website
The maintenance of HDB flats involves three parties, the homeowners, HDB and the respective town councils.
Homeowners play an important role in the regular upkeep of your unit and the common areas. Do spot for problems and sound them out early to prevent damages from being serious.
HDB provides a good platform for housing administration services, maintenance of rental properties and ensuring renovation works are carried out safely.
Town Councils are autonomous legal entities formed under the Town Councils Act. Town Councils control, manage, maintain, and improve the common property of HDB residential flats and commercial property within the Town. Common property includes corridors, void decks, lifts, water tank, public lighting, and open spaces.
For more information about HDB maintenance, please visit http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/home-maintenance.
Source: HDB website
Conservancy charges for HDB flats are payable to the respective town councils. The costs varies and depends on your HDB room type as well as the rates type.
To check how much exactly your HDB flat's conservancy charges are, follow these steps:
- Go to https://www.parliament.gov.sg/whos-my-mp and find out which constituency you are in
- Go to http://www.towncouncils.sg/about/ProfileOfTownCouncils.html and check out which town council is in-charge of your constituency
- Go to http://www.towncouncils.sg/links/usefullinks.html and find the website for your town council
- In the respective town council websites, they will state the Monthly Services and Conservancy Charges for each HDB room type as well as the rates type
Yes. In general, if your HDB estate is close to 40 years of age, it will most likely be selected for Selective En bloc Redevelopment Scheme (SERS). According to Housing Minister Khaw Boon Wan, the selection of the HDB estate for SERS depends on whether there are suitable rehousing sites, whether redevelopment is viable economically, and whether there are financial resources available to fund the programme.
If you are a SERS resident, you will get the opportunity to move to a new home with a new 99-year lease, and continue living close to your current neighbours. SERS flat owners will also be given a package comprising compensation and rehousing benefits.
For more information on SERS, visit http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/sers-and-upgrading-programmes/overview-of-sers
Source: HDB website, The Straits Times article entitled "Parliament: Khaw Boon Wan explains how HDB flats are selected for SERS"
HDB season parking charges depends on the type of vehicle and the type/location of carpark.
In addition, if your vehicle is a car, which tier you belong to. The 2 tiers for cars are as follows:
- Tier 1 season parking rate will apply to a resident's first car of the household. Resident must be the registered flat owner/ occupier/ tenant living in the HDB precinct served by the car park.
- Tier 2 season parking rate will apply to the residents' subsequent cars and all cars of non-residents.
These two tiers will also apply to registered lessees/ tenants/ stall holders of HDB shops and market stalls.
The charges range from $80 to $110 for tier 1 and $90 to $190 for tier 2.
If your vehicle is a motorcycle, the price ranges from $15 to $17. However, if your motorcycle requires 2 lots, the price ranges from $30 to $34.
For commercial vehicles, the price ranges from $65 to $185.
For further information on season and temporary parking, please visit http://www.hdb.gov.sg/cs/infoweb/car-parks/season-parking/season-parking-ticket.
Source: HDB website.
Home Financing
For residential properties, and when the terms of the document do not state who is liable to pay Stamp Duty, the party to pay Stamp Duty will follow that as specified in the Third Schedule of the Stamp Duties Act.
Source: IRAS website. For further information, please visit https://www.iras.gov.sg/irashome/Other-Taxes/Stamp-Duty-for-Property/Learning-the-basics/Who-Should-Pay-Stamp-Duty/
Stamp Duty Remissions for Property
Stamp Duty Reliefs for Property
Source: IRAS website. For more information, please visit https://www.iras.gov.sg/irashome/Other-Taxes/Stamp-Duty-for-Property/Claiming-Refunds-Remissions-Reliefs/Common-Stamp-Duty-Remissions-and-Reliefs-for-Property-at-a-Glance/
The first thing to do is to check if you are eligible for HDB loans. Do check you eligibility here.
Generally, there are 3 factors to look out for to see which loans are more suitable for you.
- If you have not enough cash on hand for downpayment, the HDB loan will be better as it requires only 10% downpayment (CPF can be used), while the bank loan requires 20%.
- If you have enough cash and would like a lower interest rate, do consider bank loans as they are tend to charge lower interest rates as compared to the flat interest rate of 2.6% for HDB loans. However, bank loans' interest rates can fluctuate. It might be risky in times of economic uncertainties.
- Your loan amount approval. Do check on the amount of loan HDB and banks can give you. You can get bankers to contact you by filling up the Contact Banker Form. They will advice you accordingly with an In-principle Approval (IPA) from their respective banks. For HDB loans, do apply for HDB's Housing Loan Eligibility letter here.
Sources: HDB website. For further information on housing loans, do visit http://www.hdb.gov.sg/cs/infoweb/residential/financing-a-flat-purchase/housing-loan-from-hdb
DBS website. For further information on housing loans, do visit https://www.dbs.com.sg/personal/landing/loans/homeloans/buy-hdb.html?pid=sg-dbs-lp-loans-hdb-flat-btn-buy-hdb#simple-steps
OCBC website. For further information on housing loans, do visit https://www.ocbc.com/personal-banking/loans/home-loan-hdb-and-private-property.html
UOB website. For further information on housing loans, do visit http://www.uob.com.sg/personal/loans/property/options5_hdbhome.html
HSBC website. For further information on housing loans, do visit http://www.hsbc.com.sg/1/2/personal/loans/find-the-right-loan?WT.mc_id=HomeLoans_google&WABFormEntryCommand=cmd_init&HL_hidden_fields.srccode=TP6&HL_hidden_fields.type
Maybank website. For further information on housing loans, do visit http://info.maybank2u.com.sg/personal/loans/property-loans/residential-property-loan.aspx
Citibank website. For further information on housing loans, do visit https://www.citibank.com.sg/gcb/mortgages/home_loan_promotions.htm?lid=SGENCBGLOMITLHomeLoanPromotions
Standard Chartered website. For further information on housing loans, do visit https://www.sc.com/sg/borrow/mortgages-home-suite.html
CIMB website. For further information on housing loans, do visit https://www.cimbbank.com.sg/en/personal/products/loans/property-loans/cimb-hdb-home-loan.html
RHB website. For further information on housing loans, do visit http://www.rhb.com.sg/personal/loans/property_financing.html
ANZ website. For further information on housing loans, do visit http://www.anz.com/singapore/en/personal/homeloans/
Total Debt Servicing Ratio (TDSR)
The TDSR framework aims to encourage prudent borrowing by households and strengthen credit underwriting standards by financial institutions. Under this framework, property loans extended by a financial institution should not exceed a TDSR threshold of 60%.
The TDSR limits the home loan quantum by ensuring your monthly repayments for all your debts - mortgage, credit cards, car loans, personal loans, and so on - do not exceed 60 per cent of your monthly income.
For example:
Fixed Income: If your gross monthly income is S$10,000 and have no outstanding debts, your maximum TDSR limit is S$6,000.
But if you have monthly loan and credit card obligations of S$2,000, your maximum TDSR limit will drop to S$4,000 – meaning you can only afford a home loan with monthly repayments of up to S$4,000.
Variable Income: If you have an “average” gross monthly income of S$10,000, the TDSR will require you to take a 30% “haircut”, meaning you’ll only be about to count S$7,000 as your gross monthly income. That means your maximum TDSR limit is S$4,200 if you have no outstanding debt obligations.
But if you have monthly loan and credit card obligation of S$1,500, your maximum TDSR limit will drop to S$2,700 – meaning you can only afford a home loan with monthly repayments of up to S$2,700.
You are encouraged to use our personalised financial calculators. You are required to dutifully complete the Financial Wizard and the full financial calculations (including TDSR) will be calculated for each property.
New Change - TDSR no longer applicable to mortgage equity withdrawal loans with LTV ratios of 50% and below
However, some borrowers have given feedback that the TDSR framework has limited their flexibility to monetise their properties in their retirement years, i.e. to borrow against the value of their properties to obtain additional cash. MAS has therefore decided to relax the rules to meet such needs. With effect from 11 March 2017, MAS will no longer apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50% and below.
Mortgage Service Ratio (MSR) was announced by the Monetary Authority of Singapore (MAS) and HDB in 2013, where buyers can only use up to 30% of their gross monthly income to repay their loans. The objectives are to instill financial prudence, moderate an over-heating property market and support an affordable and sustainable EC market. It works in tandem with TDSR and is only required if you want to purchase an HDB resale flat or EC.
The MSR limits the amount you can borrow on the purchase of an HDB or EC to 30% of your gross monthly income.
For example:
You earn S$8,000 a month fixed income, the most the MSR will allow you to pay on your monthly mortgage repayments is S$2,400.
That means that even if you have no outstanding debts and can borrow 60% of your gross monthly income under the TDSR, if you want to buy an HDB flat, the most you can borrow is only 30% of your gross monthly income.
You are encouraged to use our personalised financial calculators. You are required to dutifully complete the Financial Wizard and the full financial calculations (including MSR) will be calculated for each property.
Home Purchase (for Buyers)
For purchase of new property, there are two stamp duties to pay, namely:
- Buyer's Stamp Duty (BSD)
- Additional Buyer's Stamp Duty (ABSD)
The amount to pay are as follows:
BEFORE BUYING OR SELLING A RESALE FLAT
1.1 For buyers, please check whether:
- you and your family are eligible to buy an HDB resale flat;
- you have sufficient funds (CPF, cash, housing loan) to buy a flat and you are aware of the restrictions on use of CPF and HDB loan if you are buying a flat with remaining lease of less than 60 years (Banks/financial institutions also consider the lease period of properties in granting home loans);
- you are eligible for an HDB loan and have obtained an HDB Loan Eligibility (“HLE”) Letter or you need to get a bank loan and have obtained a Letter of Offer from a bank/financial institution;
- you are able to meet the requirements of the Ethnic Integration Policy and Singapore Permanent Resident Quota Policy on the date of resale application;
- the resale flat is affected by any Upgrading/Estate Renewal Programme and if so, understand whether it is the seller or the buyer who has to pay the upgrading cost when there is a resale of the flat;
- there is any recess area fronting the flat that you may buy;
- the sellers are selling the flat as owners or legal representatives (e.g. Attorneys, Administrators, Executors or Committees of Mentally Disordered Persons) and have met HDB’s requirements to sell the flat;
- you or your salesperson (if you have engaged one) have completed a Resale Checklist on the essential information relating to the purchase of a resale flat before you exercise the Option to Purchase.
The above steps are taken from http://www.hdb.gov.sg/cs/infoweb/e-resale/resale-procedures.
Source: HDB website.
Landed Properties? No.
A foreigner, or a foreign company, cannot purchase a landed residential property without the express permission of the Minister for Law. This restriction applies even if the property is received as a gift or inherited from a deceased’s estate. A foreign person who receives a property in such a manner is legally required to sell it within a set period of time.
HDB/HUDC/EC? No.
You are not allowed to purchase a public housing property.
However, if your spouse or your child (>21 yr old) is a Singapore citizen, they might be eligible purchase a resale HDB under the Non-citizen spouse/family scheme.
Private apartment/Condo? Yes.
Sources: HDB website, http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/eligibility-schemes and
Attorney-General's Chambers website, Residential Property Act url http://statutes.agc.gov.sg/aol/search/display/view.w3p;page=0;query=DocId%3A%2204e93755-a4d5-49ce-a1b1-708ef41778f5%22%20Status%3Apublished%20Depth%3A0;rec=0
Yes. Under the CPF Housing Grant Scheme, you may be eligible to receive a housing subsidy to help with the purchase of your resale flat. Minister for Finance, Mr Heng Swee Keat, announced in the Budget Statement in Parliament that the Government will increase the CPF Housing Grant for first-timer families buying resale HDB flats. This enhancement builds on the Government’s existing efforts to provide more affordable housing options to homebuyers. (HDB press release)
For full details and to check your eligibility, please visit http://www.hdb.gov.sg/cs/infoweb/resaleflatgrants.
Source: HDB website, Joint Press Release by MND & HDB : Enhanced CPF Housing Grant Offers More Affordable Housing Options to First-Time Homebuyers
Home Selling (for Owners)
Yes. There is seller's stamp duty payable.
The rates of SSD payable on residential property purchased on and after 20 Feb 2010 and sold within certain duration, are summarized in the table below:
Source: IRAS website. For more information, please visit https://www.iras.gov.sg/irashome/Other-Taxes/Stamp-Duty-for-Property/Working-out-your-Stamp-Duty/Selling-or-Disposing-Property/Seller-s-Stamp-Duty--SSD--for-Residential-Property/
- You have met the Minimum Occupation Period. You can get a confirmation from the HDB Branch by applying on-line at the HDB InfoWEB at www.hdb.gov.sg / e-Services / Selling a Flat / Request for Confirmation of Eligibility to Sell Your HDB Flat;
- You have an alternative home to move to;
- You have sufficient funds if you are buying another flat;
- You have any outstanding lease administration issues to be settled with the Branch;
- Your flat is affected by any Upgrading/Estate Renewal Programme. If the upgrading works have been completed, you have to check when the bill will be served as this will determine the party liable to pay for the upgrading cost. You may check the schedule of billing dates for the completed precincts at the respective Branches or from HDB's website at www.hdb.gov.sg / Home / Residential/ Living in an HDB flat / SERS and Upgrading Programmes / Upgrading Programmes / Pay Upgrading Cost / Scheduled Billing Date and Statement of Account or use the e-Service ‘Enquire Status of HDB´s Upgrading / Estate Renewal Programmes’;
- You are selling to eligible buyers whose ethnic group is within the approved ethnic limits on the date of resale application and your buyers can comply with the Singapore Permanent Resident (SPR) Quota Policy if they are SPRs;
- You or your salesperson (if you have engaged one) have completed a Resale Checklist on the essential information relating to the sale of your flat at least 7 days before you grant the Option to Purchase to the buyers.
The above steps are quoted from http://www.hdb.gov.sg/cs/infoweb/e-resale/resale-procedures.
Source: HDB website.
Property Investment
Executive condo (EC) is a public-private hybrid home that was introduced in 1995. ECs were targeted at helping the growing "sandwich class" of graduates and young professionals meet their housing aspirations. The strata-titled apartments are built by private developers, and come with facilities similar to those in private condominiums. But similar to Housing Board (HDB) flats, there are curbs on eligibility for new units.
Since its introduction, many EC owners have gain profits after holding on the to unit for 5 years, to fulfil the minimum occupation period (MOP), or for 10 years, to have the EC privatized into a private EC.
However, in today's context, due to the narrowing price gap between ECs and private condos, investors might now consider the latter due to its flexibility as they do not come strict housing rules set by HDB. If you are looking for short-term investment gains, do consider private condos as they allow you to yield immediate returns via rental and subsequent sale. If you are looking for long-term occupation, EC is a safe choice you can make, with high likelihood of price appreciation after the MOP (5 years) or privitization (10 years).
We strongly encourage you to speak to property salespersons for their professional advice on specific properties, with your affordability calculations and your ideal property portfolio plans.
You can also read the following articles for more detailed insights:
- The Straits Times article entitled "Investors see opportunity in EC market" written by Jacqueline Woo via the link http://www.straitstimes.com/business/invest/investors-see-opportunity-in-ec-market
- Singapore Business Review article entitled "10 most profitable executive condos after privatization" written by Krisana Gallezo-Estaura via the link http://sbr.com.sg/residential-property/exclusive/10-most-profitable-executive-condos-after-privatization
- Today article entitled "Buying EC no brainer for those who qualify" written by Eugene Lim and Seah Yao Hu via the link http://www.todayonline.com/business/buying-ec-no-brainer-those-who-qualify
- The Business Times article entitled "How low can EC price go?" written by Nicholas Mak, Kim Huynh via the link http://www.businesstimes.com.sg/hub/property-2016/how-low-can-ec-prices-go
Disclaimer: The contents on this website is provided for general information purposes only and does not constitute as a professional advice or an opinion of any kind.
Property Legal Advice
In the case if you are purchasing a new HDB flat/DBSS/EC and if you engage HDB to act for you, the fees that you may need to pay are:
- Conveyancing fee for sale of flat by HDB based on the purchase price of the flat
- Conveyancing fee for acting for buyer in the mortgage based on the mortgage loan of the flat
Conveyancing fees are calculated as such:
- First $30,000: $0.90 per $1,000
- Next $30,000: $0.72 per $1,000
- Remaining Amount: $0.60 per $1,000
Please note that the minimum conveyancing fee chargeable is $20 and that conveyancing fees are subject to GST.
Source: HDB website, http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/finance/costs-and-fees
If you are engaging a conveyancing law firm to act on your behalf for all other properties types, the recommended guidelines for charging in Non-CPF conveyancing transactions are as follows:
Source: http://www.lawgazette.com.sg/2003-3/Mac03-feature2.htm
To sum up, you should not be paying more than $3,000 in fees to get a cheap and reliable lawyer for a straighforward case.
An example breakdown of a of total legal fees consist for loans below $2million dollars for HDB, residential and commercial properties is as follows:
1. Professional Legal Fees - do expect to pay between $2000-$2500, depending on property type
2. GST on Professional Legal Fees - 7%
3. Stamp Duty on Mortgage - $500
4. Conveyancing Account fees - $200-$400
If you require further guidelines for charging in CPF conveyancing transactions, do visit http://www.lawgazette.com.sg/2003-3/Mac03-feature2.htm for more information.
Source: Law Society Singapore website, Singapore Business Review website, IRAS website.
To get easy access to suitable Property conveyancying lawyers, do fill up our Contact Lawyer form, we will get suitable lawyers to contact you with their services and pricing quotation.
Property Market Trends & Sentiments
There have been many rounds of cooling measure introduced by the Government since the year 2009. Most did not make a significant impact on the property prices until the ones introduced in the year 2013. Year 2013 saw the implementation of Additional Buyers Stamp Duty (ABSD), Loan-to-value (LTV), Seller's Stamp Duty (SSD) as well as Total Dept Servicing Ratio (TDSR) and Mortgage Service Ratio (MSR).
This has caused many investors, especially foreigners, to stop further property investments in Singapore. Yet, the drop in property prices and transactions did not seem enough for the Government to ease the property cooling measures. This is because the Government's aim for these property cooling measures are not only to curb the rising property prices, but to keep the property market "stable and sustainable". The Government looks at the broader considerations such as taking into account world happenings, especially developments in our neighbourhood. This prevents a re-happening of a sudden influx of foreign property investors, which will skyrocket Singapore properties' prices again.
In conclusion, it is unlikely that the Government will ease the property cooling measures soon due to the current economic uncertainties of the near future.
Sources:
The Straits Times article entitled "Ill-timed easing of property cooling measure may rekindle speculation" written by Goh Eng Yeow. Link http://www.straitstimes.com/business/ill-timed-easing-of-property-cooling-measures-may-rekindle-speculation
The Straits Times article entitled "Property cooling measures to remain for now" written by Wong Siew Ying. Link http://www.straitstimes.com/singapore/housing/cooling-measures-to-remain-for-now.
The Business Times article entitled "Property cooling measures to stay till at least 2017: analysts' written by Lynette Khoo. Link http://www.businesstimes.com.sg/real-estate/property-cooling-measures-to-stay-till-at-least-2017-analysts.
Bloomberg article entitled "Property curbs set to stay in 2017, Capitaland CEO says" written by Pooja Thakur Mahrotri. Link https://www.bloomberg.com/news/articles/2017-02-15/singapore-property-curbs-set-to-stay-in-17-capitaland-ceo-says
For a good summary of the various cooling measures since 2009, please refer to website https://www.directsgec.com/summary-of-cooling-measure/.
The Straits Times article entitled "Property curbs to stay for some timeL Lawrence Wong" written by Jacqueline Woo. Link http://www.straitstimes.com/business/property/property-curbs-to-stay-for-some-time
Disclaimer: This report does not act as a professional financial/property advice.
Property Rental (for Tenants)
Yes. Tenants usually bear the cost for stamp duty.
The rates and computation for Lease Duty are as follows:
Property Salesperson & Agency
You are strongly encouraged to check the validity of the salesperson's registration from Council for Estate Agencies (CEA) website at https://www.cea.gov.sg/public-register.
In the Public Register, the validity period of the licence or registration is shown against the name of the estate agent or salesperson. You can also see the salesperson's awards conferred and disciplinary actions taken by the Council.
Source: CEA website
Under the new Estate Agents Act
- "Estate agents" mean estate agency businesses (sole proprietors, partnerships and companies)
- "Salesperson" means individuals who perform estate agency work
However, in common terms, we often use the word 'agents' to refer to the salesperson and the word 'agency' to refer to estate agents.
Source: CEA website
In Singapore, the Council of Estate Agents (CEA) does not set a standard for a salesperson's commission fee. This is negotiated between the salesperson and the client. A more experienced salesperson might charge a higher fee while a junior salesperson might choose to reduce his or her rates in order to match competitors. Having said that, we do not encourage clients to bargain or expect free services from new salespersons as all registered property salespersons are professionals who have passed a mandatory industry Real Estate Salesperson examination.
However, common market rates are as follows:
For Buyer
- HDB Flats - 1% of the purchase price of the flat, excluding GST. For GST-Registered Companies, your agent will collect a 7% GST payment as well.
- Private Properties like Apartments, Condominiums and Landed Properties - Buyers do not need to pay any commission for hiring an agent. The agent will share the commission from the seller with the sellers agent.
For Seller
- HDB Flats - 2% of the selling price of the flat + GST.
- For Private Properties like Apartments, Condominiums and Landed Properties - 2% of the selling price of the property + GST. The seller's agent would have to then share that with the buyer's agent (if applicable).
For Landlord and Tenant
1) Above $3500 in rent and a 2-year lease – landlord pays 1 month’s rental, tenant doesn’t pay
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If there’s only a landlord’s agent (when the tenant contacted the agent directly), the agent keeps the whole commission.
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If tenant has engaged an agent who assisted the tenant and represents his interest, the 1 month’s rental commission given by the landlord is usually shared equally between the two agents.
2) Above $3500 in rent and a 1-year lease – landlord pays half a month’s rental
- If there’s only a landlord’s agent, the agent keeps the whole commission.
- If the tenant has engaged an agent, the tenant’s agent collects half a month’s rental from the tenant (if the tenant did not appoint any agent, tenant doesn’t pay).
3.) Below $3500 in rent and a 2-year lease
- Landlord’s agent collects 1 month’s rent from the landlord.
- Tenant’s agent collects 1 month’s from tenant (if the tenant did not appoint any agent, tenant doesn’t pay).
4.) Below $3500 in rent and a 1-year lease
- Landlord’s agent collects half a month’s rental from the landlord.
- If the tenant has an agent representing him/her, the tenant’s agent collects half a month’s rental from the tenant (if the tenant did not appoint any agent, the tenant doesn’t pay).
Reminder for Tenants: If you contact an agent who is listing a property, you do not need to pay any commission.
*Disclaimer: This acts as a guide. Do not assume that your property salesperson charges the same as above.
Definition of Exclusive Listings:
A real estate sale transaction in which a specified real estate agent stands to gain a commission if a property sells within a specified number of months, no matter how a buyer is found. The purpose of an exclusive listing is to motivate the agent to sell the property quickly and at the highest price possible. However, if a homeowner signed an exclusive listing agreement with an agent and also placed an ad for the property, and if the buyer found out about the property from the ad, the real estate agent would still earn a commission unless the seller has also established exclusive agency (the right of the seller to sell the property himself and avoid paying a commission despite the exclusive listing agreement).
Definition of Open Listings:
A property listing that uses multiple real estate agents in order to sell it and get it off the market. With an open listing, the agent that sells the property collects the commission.
An open listing can also refer to an owner who sells his/her home or property on his/her own without paying a commission to a real estate agent.
Which is better?
Both have their pros and cons. Depending on the situation. If your property is in urgent need to get it off the market, you can try giving open listing a try. This is because the more the salesperson marketing your unit, the higher the probability of reaching out to a buyer. However, the con to this is that the salespersons might not be as willing to invest more in advertising your property as compared to an exclusive-appointed salesperson. With many other salespersons competing to close the deal, most might advise you to conclude the deal even though the price might not be 'right'. Also, they might not invest heavily in advertising for the property as well due to the fact that they are not assured of a commission should another salesperson close the deal.
On the other hand, when you give a salesperson exclusive rights, the salesperson is assured of the commission should the property deal be closed before the deadline. Therefore, you can most likely see this salesperson advertising your property aggressively. They will also most likely aim to close the deal in the 'best price' possible. However, the downside to giving exclusive rights to a property salesperson is that you are generally 'putting all your eggs in one basket'. Should you find that this salesperson is not doing his or her job well midway through the stated exclusive period, you will not able to cancel the exclusive rights agreement. And should you find a buyer within the exclusive period on your own, or from another salesperson's recommendation, you will still have to pay this salesperson, even if he or she has nothing to do with this deal.
Conclusion
There is no hard and fast rule to what kind of listing method you should give property salespersons. In some cases, exclusive listings are sold off faster than open listings and open listings are sold off at a price higher than expectations. Most importantly, find professional, committed and trustworthy salesperson(s) to advice you. You can search for one here. If still unsure, click here and post a job for salesperson to bid. Read their offer and choose one that you like.
Definitions from: Investopedia website. Article link: http://www.investopedia.com/terms/e/exclusive-listing.asp
Simple, contact an agency of your choice! If you know and want to understudy a particular salesperson, contact them directly. Some agencies provide training and subsidy for your Real Estate Salesperson (RES) examination should you join them. Then, you will be required to sign up for the RES exam course. After passing the RES exam, you will get your license and be registered as a salesperson with the estate agent (a.k.a agency). However, if you are undecided on which agency to join, you can first take the RES exams first, then join an agency of your choice.
Click on this link to find out about the RES exams: https://www.cea.gov.sg/professionals/salesperson-registration-matters/apply-for-the-real-estate-salesperson-examination
Do note that there are other qualifications that are recognised by CEA and you might not be required to take the RES exams. Please refer to https://www.cea.gov.sg/professionals/salesperson-registration-matters/list-of-recognised-and-equivalent-qualifications for more information.
Flexible! If you are looking for flexibility in a career, real estate salesperson job is suitable for you. However, do not expect to have instant success without diligent work. Most successful property salesperson will tell you that it is not easy work. Preparation for sales presentation, constant upgrading of sales skills and gaining real estate knowledge are required. If you are working in a new launch projects, you might have to do leads-generation work such as cold-calls, outdoor marketing activities and market analysis. Most showflat salespersons also have to sacrifice their weekends waiting for their queue to serve walk-in clients. Despite all hard work, you are not guaranteed income. If you do resale and rental sales, you might want to provide add-on services like furniture buying, contractor or handyman liasion etc. Flexibility comes with a price. You might be spending time with your loved ones and suddenly a call comes in to close a deal or for viewing, you will then need to go for the appointment. However, if these do not unfaze you and you are still interested, do not hesitate to speak to estate agents or their salesperson to find out more. We look forward to you joining the real estate industry and advertising in PropertyWeb.com.sg.
Some of the largest real estate agencies are ERA Realty and PropNex Realty. With OrangeTee & Tie being third and Huttons Asia coming in forth. These are based on the number of registered salespersons for the estate agent.
Although the size of estate agents will generally give salesperson more credibility, there are many salespersons who are professional, committed and trustworthy from smaller estate agents. Do due diligence and assess salespersons individually before making your choice.
Renting Out Property (Landlords)
No, unless stated in the tenancy agreement. The stamp duty cost is commonly borne by the tenants.
No. From 1st January 2017, you can no longer rent your whole HDB to non-malaysian work permit holders form the manufacturing sector. You will only be allowed to rent out your rooms to these people. However, those currently renting can continue their existing subletting contracts before they expire.
For further information, please visit HDB website at the following URLs:
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-room or
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-flat
Reference: The Straits Times on January 24, 2017, with the headline 'New HDB rental rules for work permit holders' http://www.straitstimes.com/singapore/new-hdb-rental-rules-for-work-permit-holders
You are not allowed to rent the entire flat to non-malaysian tenants who are work permit holders from the construction, manufacturing, marine and process sectors.
For further information, please visit HDB website at the following URLs:
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-room or
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-flat
Yes. You can rent out the entire HDB to a company but you have to ensure the occupiers or the company’s employees residing in your HDB must have valid passes.
For further information, please visit HDB website at the following URLs:
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-room or
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-flat
Unfortunately, you are not allowed to do so. There are maximum numbers of bedrooms you can sublet based on your flat type. For a HDB 3-room, you can only rent out 1 room. For HDB 4-room and bigger, you can only rent out a maximum of 2 rooms.
Please refrain from breaking any rules and regulations set by HDB.
For further information, please visit HDB website at the following URLs:
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-room or
http://www.hdb.gov.sg/cs/infoweb/residential/renting-out-a-flat-room/renting-out-your-flat
According to the new rule set by URA, you can only rent to a maximum of 6 unrelated tenants in a private condominium / executive condominium, down from the previous maximum of 8 unrelated tenants.
This new rule will take effect on 15 May 2017. On and after 15 May 2017, private residential properties can only be rented out to no more than 6 unrelated persons. However, existing tenancies that accommodate 7 or 8 persons will be allowed to run their course until the cut-off date of 15 May 2019. After this two-year transition period, the occupancy cap of 6 unrelated persons will apply regardless of any existing tenancy agreements.
Source: Urban Redevelopment Authority (URA)
Please refer to URA FAQ website at this URL https://www.ura.gov.sg/uol/buy-property/about/leasing/residential.aspx
You can install minor internal partitioning works provided they do not alter the residential nature of the original unit which should include the usual essential amenities, including a proper kitchen, living and dining area.
You cannot create new sub-units or 'studios' capable of being operated independently for sale or rental unless we have given prior approval.
Source: Urban Redevelopment Authority (URA)
Please refer to URA FAQ website at this URL https://www.ura.gov.sg/uol/buy-property/about/leasing/residential.aspx
The minimum duration for staying in a private residential property is three months.
Stay durations of less than three consecutive months, such as short-term stays facilitated through home-sharing platforms, will still not be allowed, said URA in a statement. Please refer to the FAQ http://propertyweb.sg/front/faq#31 to find out more about home-sharing platforms.
This exerpt is from The Straits Times article " Minimum period for staying in private homes cut from six months to three". For full article please click on this link: http://www.straitstimes.com/singapore/housing/minimum-period-for-staying-in-private-homes-cut-from-six-months-to-three
Using PropertyWeb.sg
Of course not! The only fees users needs to pay are when they are advertising to rent out or sell their properties. The advertisement costs are $50 for a duration of 30 days.
Your need to complete your Financial Wizard to search for property based on affordability.
Go to your Dashboard > Financial Wizard to create your own Financial Wizard. Complete the form by filling all fields. (refer to image below)
Once your financial wizard is up, you can set your search filter based on your preferred affordability level for each property. At the search page, scroll all the way down to the Affordability section to select your preference on the left bar. (Refer to image below.)
The affordability will also be reflected in each of your search result.
Affordability calculations takes into account factors such as TDSR, MSR, BSD, ABSD, LTV, your cash available, CPF available as well as the rulings applicable to each property types. The different levels are calculated as follows:
Affordable: You have more than enough cash, CPF and loan amount to purchase this property.
Barely Affordable: You have barely (less than $30,000) enough cash, CPF and loan amount to purchase this property. You are advised to negotiate the price of the property and to save up more cash for it.
Slightly Unaffordable: You lack $30,000, or less, in cash, CPF and loan amount to purchase this property. You are advised to negotiate the price of the property and to save up more cash for it.
Unaffordable: You lack of more than $30,000 cash, CPF and loan amount to purchase this property. It is not recommended to look at such properties currently.
Your need to complete your Financial Wizard to see personalized financial calculations for each property.
Go to your Dashboard > Financial Wizard to create your own Financial Wizard. Complete the form by filling all fields. (refer to image below)
Next, when you are in the property advertisement, scroll down to look for the Personalized Financial Calculator and click on the button "Click Here" (refer to image below).
The following calculations will appear (refer to image below).
Go to your Dashboard > Workplace. Enter all the workplaces of your family members and yours (see image below).
Fill up the fields dutifully. Enter the address of the workplaces individually and they will be reflected in the map and the location pin.
Ensure that the "Active" checkbox is checked!
Lastly, select your preferred travelling time in the search filter when browsing for your ideal home!
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