Purchasing a property in Singapore, such as a new unit in The Continuum Condo for S$2.1 million, involves various costs beyond the listed price. This article provides a comprehensive overview of these costs, including stamp duties, loan-to-value ratios, legal fees, and mortgage stamp fees, followed by specific examples to help prospective buyers plan their finances effectively.

Overview of Costs Involved in Property Purchase

When buying property in Singapore, several key costs need to be considered:

  1. Buyer Stamp Duty (BSD): A tax levied on the purchase price or market value of the property, whichever is higher.
Purchase Price or Market Value
BSD Rate for Residential Properties
First S$180,000
1%
Next S$180,000
2%
Next S$640,000
3%
Next S$500,000
4%
Next S$1,500,000
5%
Remaining Amount
6%
  1. Additional Buyer Stamp Duty (ABSD): An additional tax that varies based on the buyer’s citizenship and the number of properties owned.
Singaporean (SC)
Singapore PRs (SPR)
Foreigners
Entities (including companies)
1st Property
0%
5%
60%
65%
2nd Property
20%
30%
60%
65%
3rd Property and Beyond
30%
35%
60%
65%

Note:

  • The rates are based on the residency status of the buyer and the number of residential properties they own.
  • The highest applicable Additional Buyer’s Stamp Duty (ABSD) rate among the buyers will apply for joint purchases.
  • Special conditions may apply for remissions and exemptions in certain scenarios, such as married couples.
  • More info regarding Additional Buyer Stamp Duty can be found at https://www.iras.gov.sg/taxes/stamp-duty/for-property/buying-or-acquiring-property/additional-buyer’s-stamp-duty-(absd)
  1. Loan-to-Value (LTV) Ratio: Determines the maximum amount a buyer can borrow from a bank as a percentage of the property’s value.
  2. Legal Fees: Incurred for the conveyancing process, including preparing the mortgage and property documents.
  3. Mortgage Stamp Fee: Payable on the signing of the mortgage document.

And for new launches like The Continuum, payments are made at various construction stages.

Examples on Total Cost Calculation for a S$2.1 Million Property at The Continuum Condo for (1) Singaporean & (2) Singapore PR

1. Singaporean Buying Their First Property

Amount
Purchase Price
2,100,000
Buyer Stamp Duty (BSD)
74,600
Additional Buyer Stamp Duty (ABSD) (0% for first property)
0
Legal Fees (Estimated)
2,500 - 4,000
Mortgage Stamp Fee
500 (max)
Total Cost
2,177,600 - 2,179,100

2. Singapore PR Their First Property

Amount
Purchase Price
2,100,000
Buyer Stamp Duty (BSD)
74,600
Additional Buyer Stamp Duty (ABSD) (5% for first property)
105,000
Legal Fees (Estimated)
2,500 - 4,000
Mortgage Stamp Fee
500 (max)
Total Cost
2,282,600 - 2,284,100

Timeline & Payment Schedule for Purchasing S$2.1 million condo at The Continuum

Assuming a loan of 75% of the property value (S$1,575,000) at a 4.23% interest rate (current best rate for Building under Construction), with a loan tenure of 25 years.

Phase
Amount (S$)
Day 1
Booking Day / Receipt of Option to Purchase
105,000 (Payable by Cash Only)
Within 2 weeks
Sales & Purchase (S&P) to be sent to Buyer's law firm, or sent to Buyer if no law firm is appointed
-
Within 3 weeks from delivery of S&P
Buyer to exercise OTP and sign the S&P at Buyer's law firm
-
Within 2 weeks of Signing S&P
Buyer to pay all stamp duties
Buyer Stamp Duty: 74,600
ABSD: Not Applicable
Mortgage Stamp Fee: 500
(Payable Cash and/or CPF)
Within 8 weeks from Day 1
Buyer to pay remaining downpayment
420,000(Payable Cash and/or CPF)
Thereafter
Progressive Payments (see below)
1,575,000(Payable Cash, CPF and/or CPF)

The S&P must be exercised within three (3) weeks upon delivery of the documents. If the option expires, the developer will keep 25% of the booking fee (which is 1.25% of the purchase price).

The duration of each stage can be earlier than stated. However, the completion date for the entire procedure must be within eight (8) weeks from the Date of Option. If there is any delay, a request in writing must be submitted to the developer and is subjected to approval.

Progressive Payment Schedule for Purchase of S$2.1 million property at The Continuum Condo

The timeline is subjected to changes by progress of construction.

Timeline
Payment %
Amount (S$)
Bank Loan Disbursed (S$)
Estimated Monthly Repayment (S$)
S&P Period
8 weeks
20%
420,000 (5% Cash, Remaining Cash/CPF)
N/A
N/A
Foundation
6 to 9 months
10%
210,000 (5% Cash/CPF, Remaining Cash/CPF/Loan)
105,000
568
Framework
6 to 9 months
10%
210,000
315,000
1,703
Wall
3 to 6 months
5%
105,000
420,000
2,271
Ceiling
3 to 6 months
5%
105,000
525,000
2,838
Door & Window
3 to 6 months
5%
105,000
630,000
3,406
Car Park
3 to 6 months
5%
105,000
735,000
3,974
TOP
6 to 9 months
25%
525,000
1,260,000
6,812
CSC
12 months
15%
315,000
1,575,000
8,515

Additional Information

For details on the price and availability of units in The Continuum, please visit The Continuum Official Page. For more information regarding buying a resale property, which is not covered in this article, refer to this guide on the cost of buying property in Singapore.

Conclusion

Purchasing a property like a unit in The Continuum in Singapore is a significant financial decision that requires thorough planning and consideration. Prospective buyers should be mindful of the various costs involved, including Buyer Stamp Duty (BSD), Additional Buyer Stamp Duty (ABSD), legal fees, and mortgage stamp fees. Understanding the breakdown of these costs and how they impact the total investment is crucial.

Key Points to Consider:

  1. Budgeting: Ensure that your budget accounts not only for the purchase price but also for additional costs like stamp duties and legal fees.
  2. Financing: Understand your loan options and how the Loan-to-Value (LTV) ratio affects your borrowing capacity. Remember to factor in the monthly mortgage payments in your financial planning.
  3. Payment Schedule: For new developments like The Continuum, be aware of the progressive payment schedule and how it aligns with your financial situation.
  4. Use of CPF Funds: Know how and when to use your CPF funds to finance the purchase, including paying for part of the downpayment and covering stamp duties and legal fees.

Engaging us, the official developers’ sales team, is highly recommended. We can provide detailed insights into the financial aspects of acquiring a unit at The Continuum Condo and address any specific concerns or queries. Our expertise will be invaluable in helping you navigate the various stages of the property purchase, ensuring that you make an informed and confident decision.

Remember, buying a property is not just about the immediate costs; it’s about making a long-term investment in your future. Understanding all aspects of the purchase, seeking professional advice, and carefully considering your financial readiness will lead to a more fulfilling and stress-free property-buying experience.

Why not contact us today for a no-obligation conversation that can offer deeper insights for a rewarding real estate journey today? Click here to begin.