How much do you need to buy a house in Singapore?
One of the most common goals a person can have is being able to buy their own home. The cost of buying a house in Singapore is high-priced. 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 be able to buy property in Singapore.
However, the market price of the house isn’t the only fee you will pay. Owning a house has other costs that you must pay for. That is why you must know the total cost of buying a house in Singapore. In this article, we’ll cover the one-time costs and the recurring house expenses.
One-time house buying costs
#1 – Down payment
The down payment is the upfront cost that you need to pay as a whole when you buy property in Singapore. Usually, the amount is 20% of the selling price of the house. However, this 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 what you pay monthly to the bank that lent you the funds to buy property in Singapore. The sum of the amount borrowed will be divided into the number of months. Then, interest will be added to the monthly quotient which will be your total monthly mortgage payment. Interest rates can be flexible so you should research the best mortgage interest package before availing.
#5 – Property taxes
Property taxes are paid every year to the government. This is an obligatory requirement that all property owners must pay. Although tax rates are relatively stable, there is still a possibility that it may rise as mandated by the government. It is best to know more about property tax when you are planning to buy property in Singapore.
#6 – Home insurances
Another cost of buying a house in Singapore is insurance. Most homes in Singapore are obligated by the government 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 are home insurances 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 for you.
#7 – Mortgage insurances
Most banks will require their mortgage loaners to avail of mortgage insurance. If your bank didn’t require it, you should definitely consider availing of one. Mortgage insurances are essential so the homeowner will not lose their house if he is unable to pay due to sudden disability or loss of work. The dependents can have the house in the event the homeowner passed 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, there will be instances that you will be charged with home association fees. That is especially the case if your house is a part of a subdivision or compound. These fees are used to cover home association expenses such as security and compound maintenance. Condominiums also charged monthly fees to pay for the maintenance of 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 that you pay to live comfortably in the house. These are electricity, water, and internet connection. These are usually consumption-based so you have full control over the cost of this. 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
To buy property in Singapore is a long-term commitment. That is why you should be aware of the cost of buying a house in Singapore. This is so you can plan your budget carefully and be able to make profitable decisions.
