How much do you need to buy a house in Singapore?
One of the most common goals a person can have is to buy their own home. However, the cost of purchasing a house in Singapore is high. After all, Singapore’s real estate industry is one of the most expensive in the world. For that reason, you will need to save or get loans to buy property in Singapore.
However, the house’s market price isn’t the only fee you will pay. Owning a home has other costs, so you must know the total cost of buying a home in Singapore. In this article, we’ll cover the one-time and recurring house expenses.
One-time house buying costs
#1 – Down payment
The down payment is the upfront cost you must pay when buying property in Singapore. Usually, it is 20% of the house’s selling price. However, this amount is negotiable and can be reduced if the seller agrees. Most people save up for the down payment and get a home loan to pay the rest.
#2 – Closing fees
The closing fees are paid to the third-party lender or mortgage broker. The lender or bank will produce the remaining amount to cover the cost of buying a house in Singapore. These fees will be used to seal the transaction. It will be the onset of the monthly mortgage payments.
Recurring house expenses
#4 – Mortgage monthly payments
A mortgage payment is made monthly to the bank that lent you the funds to buy property in Singapore. The sum borrowed is divided into the number of months. Then, interest is added to the monthly quotient, which is your total monthly mortgage payment. Interest rates can be flexible, so you should research the best mortgage interest package before making an offer.
#5 – Property taxes
Property taxes are paid to the government every year. This is an obligatory requirement that all property owners must pay. However, relatively stable tax rates may rise as the government mandates. Knowing more about property tax when planning to buy property in Singapore is best.
#6 – Home insurances
Another cost of buying a house in Singapore is insurance. The government obligates most homes in Singapore to get home insurance. The most common home insurance is Fire insurance. Usually, it is coupled with home content insurance to cover the cost of furniture damaged in the fire. There is home insurance for earthquakes and floods. Some insurance companies provide these insurances in a bundle. It is best to research home insurance and find the best one.
#7 – Mortgage insurances
Most banks will require their mortgage loaners to avail of mortgage insurance. If your bank doesn’t require it, you should consider having one. Mortgage insurance is essential so the homeowner will not lose their house if he cannot pay due to sudden disability or loss of work. The dependents can have the house if the homeowner passes away before completing the mortgage payment. Thus, it is vital to include this when calculating the cost of buying a house in Singapore
#8 – Home association/condominium fees
When you buy property in Singapore, you will be charged home association fees. This is especially true if your house is part of a subdivision or compound. These fees cover home association expenses such as security and compound maintenance. Condominiums also charge monthly fees to maintain the facilities.
#9 – Utilities and maintenance
The last cost of buying a house in Singapore is the utilities and maintenance. Utilities are the monthly bills you pay to live comfortably in the house. These are electricity, water, and internet connection. These are usually consumption-based, so you have complete control over their cost. In addition, you should allot money for home maintenance. Something will always get broken in the house. Therefore, having a home maintenance fund will make it faster for you to make repairs.
Learn more about buying a house in Singapore.
Buying property in Singapore is a long-term commitment. That is why you should know the cost of a house in Singapore. This will help you plan your budget carefully and make profitable decisions.
