{"id":75052,"date":"2017-12-21T15:43:25","date_gmt":"2017-12-21T08:43:25","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/things-to-know-before-investing-in-property\/"},"modified":"2017-12-21T16:03:10","modified_gmt":"2017-12-21T09:03:10","slug":"things-to-know-before-investing-in-property","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/things-to-know-before-investing-in-property\/","title":{"rendered":"Things to know before investing in property"},"content":{"rendered":"


\nHere are three important considerations when buying an investment property.<\/p>\n

Funding<\/p>\n

Unless you have sufficient savings to fully finance your investment, you will likely take out a housing loan for your acquisition. Thus, it is imperative to determine how much a bank will lend you. In Singapore, only citizens can borrow with a loan-to-value (LTV) of 80 percent for their first home purchase, or subsequent purchases provided the properties purchased previously have been fully paid.
\nFor those with existing mortgages, the maximum LTV is only 50 percent. Financial institutions are also required to ensure that a borrower\u2019s monthly repayment for debts like credit card and car loans do not surpass 60 percent of his\/her monthly income.
\n\u00a0\u00a0 2. Location
\nThe golden rule for the real estate market is \u201clocation, location, location\u201d. This is among the essential things to consider in property investment as this greatly influences the value, demand, price and prospects of the asset you\u2019re considering spending your hard-earned money on.
\nIn order to find a good location, do your research. Ask several property agents about different areas and get as much information as possible. Visit the websites of the Housing and Development Board and Urban Redevelopment Authority to view their price statistics for a particular area. This information can help you decide whether to invest there or not.
\n\u00a0\u00a0 3. Property taxes
\nHomeowners in Singapore need to pay property taxes, and this will surely lessen your earnings from investment properties. This is applicable whether the property is owner-occupied, left vacant or rented out. Basically, property tax is equal to a home\u2019s annual value multiplied by the applicable tax rate, wherein the annual value is the market rent of a unit for a year, excluding maintenance fees.
\nTake note that owner-occupied properties come with lower progressive tax rates of zero percent to 16 percent, while those for non-owner occupied dwellings range between 10 percent and 20 percent.<\/p>\n

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\u00a0<\/p>\n

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\nThis article was first published in the print version PropertyGuru News & Views. Download PDFs of full print issues or read more stories now!<\/p>\n


\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Things to know before investing in property<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Here are three important considerations when buying an investment property. Funding Unless you have sufficient...<\/p>\n","protected":false},"author":1,"featured_media":75053,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-75052","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2017\/12\/footer_011.gif?fit=710%2C9&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-jww","jetpack-related-posts":[{"id":41832,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/buying-a-flat-6-scenarios-you-might-face\/","url_meta":{"origin":75052,"position":0},"title":"Buying a flat: 6 scenarios you might face","date":"January 25, 2017","format":false,"excerpt":"\r The higher the floor, the costlier the flat, so if budget is a concern, opt for a unit on a lower floor.\u00a0 Aside from the important decisions you have to make when buying an HDB flat, there is always the risk of unforeseen circumstances that may affect the buying\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":115480,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-waives-tdsr-limits-for-deferred-mortgage-repayments\/","url_meta":{"origin":75052,"position":1},"title":"MAS waives TDSR limits for deferred mortgage repayments","date":"April 8, 2020","format":false,"excerpt":"\r Borrowers who apply to defer either their home loan\u2019s principal payment or both their interest and principal payments will be exempt from the TDSR limitations. 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(Photo: Jeanice Ong) The government has raised the Additional Buyer\u2019s Stamp Duty (ABSD) rates and tightened the Loan-to-Value (LTV) limits on residential property purchases, in a bid \u201cto cool the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2018\/07\/Adjustments-to-ABSD-rates.jpg?fit=1000%2C562&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":111782,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/first-home-borrowers-must-read-the-fine-print-as-the-devil-is-in-the-details-of-hong-kongs-relaxed-mortgage-entitlements\/","url_meta":{"origin":75052,"position":3},"title":"First-home borrowers must read the fine print as the devil is in the details of Hong Kong\u2019s relaxed mortgage entitlements","date":"October 22, 2019","format":false,"excerpt":"\r The Hong Kong government announced last Wednesday to relax the cap on the property value eligible for a mortgage loan with a maximum cover of 80 per cent loan-to-value (LTV) ratio from HK$6 million to HK$10 million (US$1.27 million). For mortgage loans up to 90 per cent LTV ratio\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":76194,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-seeks-more-details-on-loans-for-property-projects\/","url_meta":{"origin":75052,"position":4},"title":"MAS seeks more details on loans for property projects","date":"January 10, 2018","format":false,"excerpt":"\r The Monetary Authority of Singapore (MAS) placed more scrutiny on the way banks are funding property development projects, by gathering more data from them via a new survey sent out last month, reported The Business Times. 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