About ICA

The Immigration & Checkpoints Authority (ICA) is a government agency under the
Ministry of Home Affairs.

ICA has brought together the former Singapore Immigration & Registration (SIR) and
the enforcement work performed by the former Customs & Excise Department (CED)
at the various checkpoints.

Operational on 1 April 2003, ICA is responsible for the security of Singapore's

borders against the entry of undesirable persons and cargo through our land, air and
sea checkpoints. ICA also performs other immigration and registration functions such
as issuing travel documents and identity cards to Singapore citizens and various
immigration passes and permits to foreigners.
Eligibility to Buy Private Property
In the year 1973, the Singapore Government has imposed restrictions on foreign
ownership of all private residential property in Singapore. Such ownership is governed by
the Residential Property Act.

The Act aims to give Singaporeans a stake in the country by being able to buy and possess
their own residential property at an affordable price and also encourage foreign talent by
allowing permanent residents and foreign companies who make an economic contribution
to Singapore to purchase such properties for their own occupation.

The Residential Property Act (RPA) is then amended on 19 July 2005 to allow foreigners
to purchase apartments in non-condominium developments of less than 6 levels without
the need to obtain prior approval.

For restricted property such as vacant land, landed properties such as bungalows, semi-
detached and terrace houses, prior approval is still needed if foreigners wish to buy.
Landed properties is a special class of residential property that Singaporeans aspire to
own, and should remain restricted. Foreigners need to apply for approval from Singapore
Land Authority before buying.

If you are a foreigner (or expatriate) and you wish to purchase a restricted residential
property, you need to download the application form at
http://www.sla.gov.sg/htm/ser/ser0307.htm#d You can submit the form together with the
relevant supporting documents such as your entry and re-entry permits and qualifications
to:
Land Dealings (Approval) Unit
No. 8 Shenton Way,
#27-02 Temasek Tower,
Singapore 068811

What are the non-restricted residential properties?

Foreigners are not restricted from acquiring:
n Developments approved as a condominium development under the Planning Act
n A flat in a building of 6 levels or more including the ground level and any level
below the ground level including HUDC Phase I, Phase II flats and privatised
HUDC Phase III and IV flats
n A leasehold estate in restricted residential property (refer to A) for a term not
exceeding 7 years including any further term which may be granted by way of an
option for renewal

What are the restricted residential properties?

Foreign persons (including natural persons, foreign companies and societies) are restricted
from purchasing:
n Vacant land
n Landed residential property, such as bungalows, terrace houses, semi-detached
houses
n Residential property in a building of less than 6 levels
Property Search
Engage a Realtor
A professional property agent in Singapore will assist you and protect your interest
throughout the purchase, secure the offer for you at the best possible price. With a much
better knowledge of Singapore, the agent will be in a better position to recommend and
advice on the choice of property. He will also ensure that all documents are in order and
you are dealing with the rightful owner of the property.

Use Only 1 Agent

Most property companies share the same database of property listings in Singapore.
Therefore use only ONE agent at a time. If you approach many agents at the same time,
very likely that they will show you the same property. Much confusion and embarrassment
will arise if you engage many agents. Using 1 agent, you will save valuable time for
yourself and the agent. He will then understand your needs and requirements better after a
few viewings. Only if they are incompetence, unresponsive or not showing the correct
property you wanted, then start to look for another agent.
Singapore Expats Team has seen thousands of properties in Singapore throughout the
years. Therefore, you can trust on us to provide tenants or buyers the correct
recommendations. We have the largest property database in Singapore, it would be totally
unnecessary for tenants and buyers to go through other realtors except us to avoid
repetitive viewings of the same property.

Our Singapore Online Property Classifieds consist of a vast selection of apartments,

houses, flats and commercial properties in Singapore. If it is for sale, you will find it here.
Do send us a mail or call us at +65 61000 300 if you would like to engage
SingaporeExpats.com to do the search and recommendation for you. Read more about
SingaporeExpats.com at About Us and Our Testimonials. It isn't difficult to understand
why thousands of clients every month selected us as their sole agent. After all, we are the
Number 1 Property Portal in Singapore.
Location
Depending whether you are buying the property for own stay or investment, location plays
an important role. Properties in prime districts retain their value very well and they usually
have the highest capital gain in a bullish property market. Properties in the suburbs are
lower in price and may be more suitable for own stay than investment. If you can
purchasing the property for investment, the properties in prime districts like district 09, 10,
11 or the Central Business District are the safest buy. Properties with sea view at the East
Coast are also great for a resort home or investment.

Budget
How much cash upfront you willing to pay for the property? How much CPF in your
ordinary account that you can use for the purchase? The latest MAS ruling allows
purchaser to loan up to 80% of the valuation or purchase price, whichever is lower. 10%
must be paid in cash and the other 10% can be paid using CPF or cash.

Rental Yield
If you are buying the property for investment and intend to rent out the property, calculate
the yearly rental yield versus the purchase price. Properties at district 09, 10 and 11 easily
yield the highest rental returns. Due to the premium in price for freehold properties, they
most likely have lower rental yields than leasehold properties.

If you are a non-residential foreigner (no valid employment permit or pass for long stay)
purchasing a property for rental returns, do not forget to factor the personal income tax,
which is moderately high at 20%. For foreigners who are working in Singapore with valid
employment status, the tax rate will be much lower. Visit the IRAS website for more info
on taxes.

Valuation & Loan

Check the indicative valuation for the property you intending to buy. Valuation directly
affects the amount of loan you can get for the property. Take into account the number of
years that you can loan, the monthly instalments, etc.

You need to check whether your credit status and income proof can enable you to loan
(with effect from 19 July 2005) 90% of the of the valuation or sale price (whichever is
lower). For a foreigner, major banks or financial institutions in Singapore can only loan up
to 70% or 80% of the valuation or sale price (whichever is lower).

If you are looking for competitive housing loan and indicative valuation, we have contacts
with major banks and can help you get a good financial package. We can help you check
for indicative valuation, apply for a housing loan or get an Approval-In-Principle before
the purchase. Contact us for more details.

For HDB flats, you may want to check the eligibility to get a concession loan from HDB.
If you are not entitled to get the loan from HDB, the other way is to get it financed by a
commercial bank.
Option to Purchase
You have decided to purchase a property. Prepare 1% of the purchase price (as a
consideration) in exchange for the Option to Purchase from the seller. Option to Purchase
is usually prepared by the seller's (vendor) solicitor or property agent. You are usually
given 14 days to decide whether to proceed with the purchase. If you decide to proceed,
exercise the option by signing in your solicitor's office and forward it to the seller's
solicitor together with another 4% or 9% (agreement between the vendor and purchaser)
of the purchase price.

Offer to Purchase
Alternatively, you can ask your realtor to prepare the Offer to Purchase and attention to
the seller. Clearly stating the price, sales completion date and others. Terms and conditions
can be drafted by your solicitor or your realtor.

Completion of Sale
From then on, leave it to your solicitor for the completion of the sale, which will be
completed in around 8 to 10 weeks time (agreement between the vendor and purchaser).
Your solicitor will lodge a caveat on the property, coordinate with the financial institution,
CPF board (if applicable), prepare the mortgagor/mortgagee documents.

Stamp fee will be payable to Inland Revenue Authority of Singapore within 14 days upon
exercising the Option to Purchase or signing the Sales and Purchase Agreement when you
buy from a property developer. For properties above S$300,000, stamp fee payable will be
3% of the purchase price minus S$5,400.

For HDB flats, there is also an option period of 14 days for the buyer to consider over the
intended purchase, to check his eligibility, financing aspects and other issues such as
whether the flat is affected by redevelopment/upgrading, the liability to pay upgrading
cost/levy etc. If the buyer does not wish to buy the resale flat, he can let the Option expire
and loses only the option fee. To ensure a standardised practice, HDB has the following
guidelines for the Option Fee, Deposit and Option Period:

Option Fee - An amount not exceeding $1,000

Deposit - An amount not exceeding $5,000 (including the Option Fee)
Option Period - 14 calendar days
Please visit the HDB website for more details.
Inspection Before Taking Over The Property
The buyer can request and state clearly in the Option to Purchase for permission to inspect
the property before the completion of the sale. Check the fixtures and fittings, and also the
items that the seller had agreed to sell with the property.
For HDB flats, HDB will do the inspection on your behalf. They will check for any
unauthorized renovation. Seller will need to reinstate the flat into the condition allowed
before HDB approve the sale.

Commission Payable
For private property, agency commission is paid solely by the seller, which varies from
1% to 2% of the selling price. For HDB, seller will pay around 1% to 2% of the selling
price, whereas the buyer will usually pay 1%.
Buyer and seller should ensure that an invoice from a licenced real estate agency is issued
to them. Upon payment, do not pay cash directly to the realtor, instead, issue a cross-
cheque payable to the realtor's agency according to the invoice.