Are you a permanent resident (PR) in Singapore looking to buy a property? If so, you’re in luck! As a PR, you are eligible to purchase certain types of properties in Singapore. However, there are some rules and restrictions you need to be aware of before you start your property hunt.
Firstly, it’s important to understand the eligibility criteria for PRs when it comes to property ownership in Singapore. PRs are allowed to purchase HDB flats, executive condominiums (ECs), and private condominium units. However, there are some conditions and restrictions that apply to HDB flats and ECs. For example, PRs can only buy a new HDB flat if they are married to a Singapore Citizen, and they are only allowed to purchase certain types of HDB flats. Additionally, PRs are subject to Additional Buyer’s Stamp Duty (ABSD) for all residential property purchases.
Navigating the property purchase process in Singapore can be overwhelming, especially if you’re a first-time buyer. From finding the right property to securing financing and completing the paperwork, there are many steps involved. However, with the right knowledge and guidance, you can make the process smoother and less stressful. In this article, we’ll provide you with all the information you need to know about buying property in Singapore as a PR.
Key Takeaways
- As a PR, you are eligible to purchase certain types of properties in Singapore, such as HDB flats, ECs, and private condominium units.
- There are some conditions and restrictions that apply to HDB flats and ECs, and PRs are subject to Additional Buyer’s Stamp Duty (ABSD) for all residential property purchases.
- Navigating the property purchase process in Singapore can be overwhelming, but with the right knowledge and guidance, you can make the process smoother and less stressful.
Understanding PR Eligibility and Property Ownership in Singapore
Eligibility Criteria for PRs to Buy Property
As a Singapore Permanent Resident (PR), you are eligible to purchase certain types of residential properties in Singapore. However, you must meet certain requirements to be eligible to buy property. For instance, you must have a valid PR status, meet the income ceiling, and fulfill the minimum occupation period (MOP) for any previously owned public housing.
Types of Properties Accessible to PRs
As a PR, you can purchase HDB flats, executive condominiums (ECs), and private condominium units. However, note that HDB flats and ECs are considered government housing, and PRs are subject to certain conditions. For example, under HDB rules, a PR may qualify to buy an HDB flat under two schemes: the HDB Public Scheme, which is buying with a family unit (i.e. spouse, children, siblings, parents), or the Fiancé/Fiancée Scheme, which is for buying with your fiancé or fiancée.
Financial Considerations for PRs Acquiring Property
When acquiring property as a PR, you must be aware of the various financial considerations. For instance, you will need to pay the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) when purchasing property in Singapore. The ABSD is an additional tax that applies to foreign buyers and Singapore Permanent Residents purchasing their second or subsequent property. Additionally, you may be eligible for CPF Housing Grants if you are a first-time applicant purchasing a new HDB flat or resale flat.
It is also important to note that if you are a PR investing in a leasehold estate in a landed residential property, you will need to seek approval from the Land Dealings Approval Unit (LDAU) of the Singapore Land Authority (SLA) beforehand.
Overall, as a PR in Singapore, you have access to a variety of properties, but it is important to understand the eligibility criteria, financial considerations, and property regulations before making any investments.
Navigating the Property Purchase Process
As a Singapore Permanent Resident (PR), buying a property in Singapore can be a daunting task. However, with proper guidance and knowledge, the process can be made easier. In this section, we will guide you through the steps to acquiring a property, understanding additional costs and taxes, and seeking professional assistance.
Steps to Acquiring a Property as a PR
Before you start your property search, it is important to understand the eligibility criteria for each type of property. As a PR, you are eligible to purchase resale HDB flats, Executive Condominiums (EC), and private properties. However, there are certain restrictions that you need to take note of.
Under the Residential Property Act, PRs are only allowed to purchase HDB resale flats after fulfilling the Minimum Occupation Period (MOP) of 5 years. For ECs, PRs can only purchase units that have fulfilled the MOP and are within the PR quota. Private properties, on the other hand, have no restrictions for PRs.
Once you have identified the type of property you are eligible for, you can start your property search. You can choose to engage a property agent or search for properties online. It is important to view the properties in person and conduct thorough research before making a decision.
Understanding Additional Costs and Taxes
Apart from the purchase price of the property, there are additional costs and taxes that you need to take note of. These include stamp duties, legal fees, and property tax.
Stamp duties are payable upon the purchase of the property. The Additional Buyer’s Stamp Duty (ABSD) is applicable for PRs purchasing their second and subsequent residential properties. The ABSD rates range from 12% to 20% of the purchase price, depending on the number of properties owned.
Legal fees are also payable for the conveyancing process. The fees vary depending on the complexity of the transaction and the law firm engaged.
Property tax is payable annually and is based on the Annual Value (AV) of the property. The AV is assessed by the Inland Revenue Authority of Singapore (IRAS) and is based on the estimated gross annual rent of the property.
Seeking Professional Assistance
Navigating the property purchase process can be overwhelming, especially for first-time buyers. It is recommended to engage a property agent or lawyer to guide you through the process and ensure that all legal aspects are taken care of.
The Land Dealings Approval Unit (LDAU) is also available to assist with the application of approvals for the purchase of vacant residential land or properties with restrictions.
In conclusion, purchasing a property in Singapore as a PR can be a complex process. However, with proper guidance and knowledge, you can make an informed decision and find your dream home in this beautiful city-state.
Frequently Asked Questions
What’s the process for a Permanent Resident to buy a resale HDB flat in Singapore?
If you are a Permanent Resident (PR) in Singapore, you can purchase a resale HDB flat without any restrictions. However, you must ensure that you meet the eligibility criteria set by the Housing and Development Board (HDB) of Singapore. You must also obtain an approval from the HDB before purchasing the property.
How does the Additional Buyer’s Stamp Duty affect PRs purchasing property in Singapore?
The Additional Buyer’s Stamp Duty (ABSD) is a tax imposed on individuals who purchase additional properties in Singapore. If you are a PR in Singapore, you will be required to pay ABSD if you purchase a second property in the country. The ABSD rates for PRs are higher than those for Singapore citizens. You can find more information about the ABSD rates on the website of the Inland Revenue Authority of Singapore (IRAS).
Are Singapore PRs eligible to purchase executive condominiums on the open market?
Yes, PRs in Singapore are eligible to purchase executive condominiums (ECs) on the open market. However, they must meet the eligibility criteria set by the government. PRs are also subject to certain restrictions when purchasing ECs.
Is there a minimum occupancy period for PRs before selling their HDB flat?
Yes, PRs who purchase an HDB flat must fulfill a Minimum Occupancy Period (MOP) of five years before they can sell the flat in the open market. If you sell your HDB flat before the MOP is fulfilled, you will be required to pay a resale levy.
Can Permanent Residents own both HDB and private properties simultaneously in Singapore?
Yes, PRs in Singapore are allowed to own both HDB and private properties simultaneously. However, they must fulfill certain conditions and obtain approval from the relevant authorities.
What are the eligibility criteria for Permanent Residents to buy landed property in Singapore?
PRs in Singapore are allowed to purchase landed property, subject to approval from the Land Dealings Approval Unit (LDAU) of the Singapore Land Authority (SLA). However, PRs must meet certain eligibility criteria, such as having been a PR for at least five years and making an exceptional economic contribution to Singapore.