Investing in
Singapore properties

Investing in
Singapore properties

Why should you invest in Singapore properties?

Singapore’s real estate has always been sought after by both local and international investors. Singapore is an attractive location for three key reasons – its strong economic fundamentals, political stability and world-class infrastructure making it an excellent place for anyone to live, work and play in.

Benefiting from property investments in Singapore:

  • Capital Appreciation You can gain capital appreciation on two fronts – when your investment property increases in value and when the Singapore Dollar appreciates.
  • Rental Income You can earn rental income from leasing out your investment property. Rental income is subject to income tax, but expenses incurred solely for producing the rental income such as interest on home loan, property tax and maintenance during the period of tenancy may be claimed as tax deduction.
  • Legacy Planning Singapore properties are also popular choices for legacy planning as there is no inheritance tax or estate duty.

Singapore Government’s Housing Policies and Taxes

To maintain a stable housing market, the Singapore government has put in place rules on the purchase, financing and sale of residential property.
Here are a few key information impacting the cost of your property purchase and consequently, your investment yield, as well as key considerations when applying for a property loan.

Purchasing A Property

Buyer’s Stamp Duty (BSD)

This is a tax on documents executed for the purchase of a property. BSD is computed based on the purchase price or the market value of the property (whichever is higher).

Additional Buyer’s Stamp Duty

You may also need to pay ABSD depending on your profile:

  • Whether you are buying as an individual or as an entity
  • Your residency status e.g. Singaporean
  • Number of residential properties owned

Financing Your Property Purchase

Total Debt Servicing Ratio (TDSR)

The amount of money you can borrow from the bank is limited by the TDSR. Your total monthly loan repayments must not be more than 60% of your income.

Loan-To-Value (LTV)

The LTV is dependent on the number of outstanding home loans in Singapore. The more home loans you need to service, the less you can borrow from a bank.

Owning A Property

Property tax is payable annually by owners of properties. Property is taxed differently, depending on whether the property is owner occupied or rented out.

Selling Your Property

Seller’s Stamp Duty (SSD) is payable on all residential properties and residential lands that are bought and sold within the holding period of 3 years (for properties purchased on or after 11 March 2017).

You can learn more about these from the following pages:

Our Services

As an OCBC Premier Banking customer, you can look forward to:

  • Gaining insights on the Singapore property market

  • Getting customised and holistic home financing solutions

Speak to your Relationship Manager to find out more. If you are not an OCBC Premier Banking customer, you can click here to have us contact you and we will be in touch.

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