Requisites When Buying Second Property: London vs Singapore
As home prices continue to rise in recent years, many people are looking for a way to make their money work for them. One popular option is investing in property – whether by buying one’s first property or second property. However, this can be an intimidating process with so many aspects to consider.
For many residents, buying a second property in Singapore can be very tempting; however, doing so isn’t always the best way to go due to complex regulations and costs. This is the reason most people invest overseas, such as London, instead.
There are many considerations when buying second property in Singapore, such as the following:
- You need to have an existing property in Singapore first.
Yes, you’ll need to buy a private property before you can own another one. You might have heard that buying your first home is expensive but it’s not as bad in the long run if done right.
Mortgage interest rates are high these days and becoming even more expensive every year so make sure ABSD (additional housing purchase duty) taxes don’t break the bank too much when purchasing an HDB flat or condo for yourself. If you intend to buy an HDB flat followed by a condo, then you must purchase the HDB flat first then fulfill its maximum occupancy period before getting a condo.
- Additional Buyer’s Stamp Duty.
When it comes to taxes, Singapore citizens are charged 12% for their second property, while Singapore PRs are charged 15%. On the other hand, foreigners must purchase properties at a 20% above-market rate due to restrictions put in place by the government aimed at preserving its limited land area and housing supply.
If you are looking to buy another residential property in Singapore, make sure that the conditions for doing so are right. It’s important not only to do your research on properties before buying one but also take these cooling measures into account when making any investments here.
Buying second property in London meanwhile can be a more practical alternative because of the following reasons:
- Foreigners can buy property in London.
Non-resident foreigners are allowed to buy property in the UK. They face no particular restrictions as long they can demonstrate their funds come from an independent source and not financed by another country’s government.
- Wide array of properties to choose from.
In London, there are many property options to choose from, including freehold and leasehold flats as well as houses. You can also buy newly-built or under-construction properties, or opt for resale property.
- The seller will issue you a home report.
The seller is legally obliged to provide you with a Home Report that provides information on the property and its energy efficiency. The report will also detail what features of your potential new home are there, as well how much it costs for operating expenses in comparison with other properties like hotels or restaurants.
- There are financing options that you can apply for.
When buying a property in London, you can take out a mortgage from either the UK or Singapore, but once again you are not allowed to use your CPF savings for any part of this purchase.