Buying a Resale Condo in Singapore – 9 Easy Steps To Uncover How

Are you planning to buy a resale condo in Singapore? Buying a property is a huge milestone for most of us.

Staying in a condominium and waking up every day knowing that you have the luxury of having amenities such as the swimming pool and gym right in front of you.

Check out our guide to buying a resale condo as we guide you through the full process to get it right.

To make this a little easier, we’ll break it down into 9 steps.

There are plenty of resale condos here in Singapore and your options are pretty much limitless.

The real challenge is how to find the right place that fits your needs.

Prior research on the location is important as you want to pinpoint the location or area first.

Then, look at the price range to get an idea of the resale condo market in Singapore.

Everyone plays on a different budget and has their own set of preferences.

Engaging a professional property agent that listens to your needs will ease this process for you.

You’ll be able to find the most suitable properties based on your price range and criteria.

After that, shortlist some properties that you’re interested in and the ones that fit your budget.

The next step is to make an appointment and go for property viewings.

This step is both exciting and stressful for most as you can be overwhelmed with the choices.

To make this process smoother, here are some key things you need to know when you go for property viewings.

There’s more to property viewings than just walking into the room and feeling its vibe and atmosphere. 

To get to know a place, you must first find out about the community and culture.

If you don’t have personal transport, it is advisable to take the bus or the MRT on the day of your home viewing.

This way, you can gauge your commute time and the distance of bus stops or MRT stations from the designated place.

If you’re into sports or exercise, make sure the resale condo has the amenities and equipment that cater to you. 

Checking the space of the house is also crucial.

An average property viewing is around 15 minutes, which means you’ll need to thoroughly go through the unit within that short time.

Depending on your needs and desires, rank what you’ll need more.

For example, choose between having a balcony in a five-bedder unit vs a larger living room space in a four-bedder unit.

Check the condition of the unit for defects. Remember this can be your next home so take your time to check it thoroughly.

Some things to keep an eye out for include cracks and stains on the walls, ceilings, floor, and tiles, as well as the taps, toilet, and flushing system.

Such defects could be costly so it’s better to check before you get into something you might regret later.

Aesthetic aspects such as the view, how well the sunlight comes through, and noise levels in the unit should also be assessed.

This may seem trivial but accessing the location of the wall sockets plays a part as well.

Knowing where the plug points are will help in planning where you’d place your sofas and other furniture. 

It is also advisable for you to take as many photos as you can. Take shots of individual walls, windows, and fixtures.

You might spot some fault later on that you missed initially.

Once you have settled on your dream property, it’s time to negotiate with the seller on the resale Condo price.

Sources state that often, the seller’s price may be ridiculously high and way above the average Singapore resale condo prices.

This is commonly the case when the property sits on the market for too long.

Units that have been on the market for more than 6 months may be priced too high compared to neighboring properties of equal value.

So you need to do your due diligence to research the resale Condo prices in Singapore.

There could be other reasons why it’s well-priced so just be mindful. 

Most Singapore properties in the open market are open to negotiation, so be sure to negotiate for a more reasonable and attractive price.

It is essential to research similar properties in the same vicinity to know how much you can negotiate to get a reasonable price point.

It is also encouraged to evaluate the resale condo price in Singapore with professional real estate valuers if you are unsure.

The property valuation will have an impact on your home loan quantum (which is pegged to 75% loan to value (LTV) and the Buyer’s Stamp Duty (BSD) that you have to pay. 

Before getting anything, especially a high-ticket item like property, planning your finances is vital.

A house is a huge financial commitment. It is easy to get carried away with the excitement and neglect this step.

Once you have negotiated the price and are content with it, it’s time to plan your finances before committing to the purchase. 

When budgeting the cost of buying a resale condo in Singapore, here are a few things that you can expect to pay upfront:

• Booking fee (1% of purchase price)
• Stamp duty and (if applicable)
• Additional Buyer’s Stamp Duty (ABSD)
• Balance Down Payment (4% of purchase price)
• The balance purchase price minus the home loan amount cash over valuation (if needed)

You will still have to pay the 1% option fee and Cash Over Valuation (COV) both in cash even when you use your CPF savings to pay part of the property price as well as the stamp duty and ABSD.

Furthermore, limits on the use of CPF savings might apply depending on how many years remain on the lease and how much you have in your CPF accounts, and/or your age.

Be sure to have cash for the upfront payments that have to be made.

You are required to obtain the Option to Purchase (OTP), in exchange for a booking fee.

This is to “reserve” your property and is an agreement binding the seller for the sale.

It gives the buyer the exclusive right to purchase the property from the seller.

To get the OTP, you have to pay in cash an equivalent booking fee of 1% of the resale Condo price.

Once the OTP is acquired, the seller cannot sell the property to anyone else, until you exercise the option or until it has lapsed.

Upon receiving the OTP, you can engage a lawyer to negotiate, review, and request to modify any of the terms before signing. 

If you end up not purchasing the resale condo, the seller has the right to forfeit the option fee.

Once the booking fee payment is made, it is time to finance your purchase.

Given the high resale condo price in Singapore, you will likely need a home loan for the purchase.

Contemplate how much of the purchase price you can put up using cash and your CPF savings, and how much you need to loan.

Then, you will have to compare the interest rates on loans from different banks to find one that is competitively priced. 

Be mindful that all of your loan repayments, including your housing loans and other loans such as car loans, tuition fee loans, and credit card debt should never exceed 60% of your income.

Besides that, taking a home loan requires you to pay 25% of the purchase price as a down payment since banks will only loan you up to 75% when buying Singapore property.

To exercise the Option to Purchase (OTP), you will have to return the signed document to the buyer.

You most probably have to pay 4% of the purchase price after you exercised the option known as the exercising fee.

Other fees such as Stamp Duty and Additional Buyer’s Stamp Duty (ABSD) will also have to be paid when the option is exercised.

Your lawyer will most likely collect the 4% initial down payment, stamp duty, and ABSD payments a few days prior. 

On the finalization date, you will have to pay the balance of the purchase price minus your home loan.

Your lawyer will then request you to submit a cashier’s order a few days in advance.

So be sure to take note of this…

You have been counting down to this day since Day 1.

The most exciting part of the whole process has finally arrived.

Finally, you get the keys to your home after going through all of the processes.

On the completion date, your lawyer will pass the downpayment to the seller, and you will subsequently collect the long-awaited keys to your resale condo.

You can now look forward to planning your renovation, how you’d like to design your house, and maybe hosting a housewarming party.

We hope this guide is useful in securing your next home!