Been eyeing that new condo for years? Perhaps you have saved just enough now and looking to invest in one with your hard-earned cash. But just how much will a typical condo cost you? Similar to most properties, the price of a condo varies according to the area. For instance, it is not rare for condos to cost $6 million or above in expensive districts like Orchard Road and Sentosa.
Here, we will be referring to the more commonly looked at mass market condos among Singaporeans, when addressing this property type. Read on for a quick breakdown of what it takes to purchase a condo in Singapore!
1. The down payment
You can expect to pay around a grand estimated average of $1 million for one of these more typical condos located in the heartland like Tampines or Clementi. A maximum Loan to Value (LTV) ratio of 75% from the bank can be expected, assuming no outstanding home loans. If the bank decides to kindly loan the full 75%, this means you are able to borrow a generous total of $750,000, leaving an outstanding remainder of 25% or $250,000. You can use your CPF Ordinary Account (CPF OA) funds to pay off 20% or $200,000, and the rest of 5% or $50,000 in cash.
2. The monthly loan repayment
Assuming the typical loan interest rate at 2%, you can expect to pay around $3,178 monthly with a 25 year loan. Luckily, you can make the monthly repayments using your CPF OA. Even as one of the cheapest loans around, expect to fork out close to $953,000 for a $750,000 loan over 25 years.
3. The monthly maintenance fee
Depending on factors such as the size of the unit, you should also consider the dreaded monthly maintenance fee, which you can expect to pay around an estimated $300 a month for a standard mass market condo. On the other hand, it will cost you a hefty $1,000 monthly for fancier ones!
4. The renovation cost
Of course, not forgetting the renovation cost when moving into a new place, which will set you back at a minimum of $30,000. Be prepared to pay the contractors 20% upfront, as well as another 20% at each completed stage of the renovation. Thinking of renovating your home? You can find out more about our home improvement services.
5. The property tax
Finally, you will need to work out the property tax, which is based on the Annual Valuation (AV) of your property.
During the Singapore Budget on February 18, 2022, the government announced that the Property taxes rates for both owner-occupied and non-owner-occupied residential properties will be revised in 2 steps starting from 2023.
Rates for owner-occupied homes with an annual value in excess of $30,000 will be raised – ranging from 5 to 23 percent in 2023, to 6 to 32 percent in 2024.
For non-owner-occupied homes, which includes investment properties – taxes will be hiked across the board: from the current 10-20 percent, to 11-27 percent in 2023 and 12-36 percent in 2024.
Buying a condo in Singapore will take lots of financial planning in advance, as you look to make your condo dream a reality. Interested to find out more? With Ohmyhome, your dream condo is just right around the corner. If you are interested to learn more about our new launches and exclusive discounts, call us at 6886 9009!
Related posts:
- 4 Things to Consider Before Buying Private Property for the First Time
- Ohmyhome Hits the Private Market
- Executive Condominium: Is it buying a Home or a Lifestyle?
- ABSD Increases by 5% for Citizens and PRs Buying Second Homes On or After 6 July
- Benefits of Engaging a Mortgage Consultant
While the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.
