As adults, one of the most satisfying and fulfilling purchases is a house or a property. This is because it is a good investment and something that is practical. However, buying a house or other properties that cost a lot of money. Especially in Singapore which has one of the most expensive price ranges when it comes to properties. The expensive property prices are due to the many people residing or living in Singapore. They are all fighting for a roof over their heads meaning they are adding to the number of demands for housing. However, Singapore has one of the smallest land areas for a country. So, the high demand for a living space is not met with an equal amount of supply. When the laws of economics are applied, the lack of source makes the prices of goods and commodities increase. This is also being observed in Singapore.
One of the solutions that many companies have introduced is to develop many high-rise buildings. High-rise buildings have not just doubled the capacity of residents in Singapore, it has tripled it or even higher. The usual piece of land that can only house one to two units can now be used by hundreds of tenants through high-rise buildings. These buildings are referred to as condo units.
These condo units are relatively more expensive than other housing types. It is because they provide more perks and amenities by being in strategic locations. This is the common practice when making condo rooms as they can make the condos more attractive and more competitive. One of the condos that have the best amenities is The M Condo. Penrose Condominium has also an amazing set of perks. As stated, it may be more expensive to buy condo units. So, to prepare you for that condo, here are some fees that you need to prepare when you buy your first condo in Singapore.
#1 Option-to-purchase fees (OTP)
This fee is common for all properties that you will purchase. It acts like a reservation fee or a fee that signifies interest in buying the condo unit. This is also paid when you buy a unit in Penrose Condominium. This is usually paid when the buyer and seller have finally agreed on the final price of the property. When it comes to private properties like The M Condo, the lawyer of the seller must be the one to draft an agreement about this.
This usually costs around 1% of the total property price. After paying, the buyer is given two weeks to up to two months to push through with the transaction. However, if the buyer does not want to continue with the purchase, the seller has the right to not refund the OTP fee.
#2 Stamp duty
Stamp duty serves as the property tax of the buyer. This is one of the fees that is required by the law. There are two types of stamp duty, one is the buyer’s stamp duty and the other is the additional stamp duty. The buyer’s stamp duty was the one required for all purchasers. It costs 1% for every $180,000.
For the additional stamp duty, this depends on two factors. One of the factors is the residential status of the consumer. The other one is the number of properties of the purchaser. Foreigners usually pay more expensive ASD. Those who have more properties also pay more. For example, if you already own a unit in Penrose Condominium, the ASD will be more expensive when you buy in other condo buildings. It will even be more expensive when you buy another unit in The M Condo in addition to these properties.
#3 Legal fees and insurance fees
The presence of a lawyer is required when you have finally pushed through with buying a unit from The M Condo. This is to make sure that all the agreements between the seller and buyer are all legal. This is advisable and needed for every property transaction since it involves money and important property documents. This is also true when buying a property from Penrose Condominium. After signing these agreements, setting insurance for your property is also a must. This is to make sure that you are secured and is safe from future possible damages. However, some condos, like The M Condo usually have bundles or packages that include the insurance fees in the price of the condo unit.
Know more with us
Buying your first property in Penrose Condominium or other developers is an expensive decision. However, being ready can help you lessen the impact of these fees. Visit us today in SRX Property to know more.