Property Related Expenses
You are eligible to engage HDB to act for the sale of your HDB flat if you have an existing HDB loan of fully paid flat. You are eligible to engage HDB to act for the purchase of your HDB flat if you are using HDB loan or purchasing with no loan. You can check HDB legal fees here. HDB legal fees is based on a percentage of the transacted price of the HDB flat. The legal fees is usually lower compare to engaging a private lawyer.
If you are selling or purchasing with a bank loan, you are required to engage a private lawyer to act on your behalf. The legal fees range from S$1,500 – S$3,000 for typical property purchase. However, if you have more complex cases such as divorce, please check with the lawyer directly on their fees.
Most buyer agents do not charge commission for the services they render if you are buying a private property, they will likely take their fair share of their commission from the seller agent.
If you are buying a new home, they will take their commission from the developers directly.
However, commission is payable if they assist you in purchasing a HDB flat.
The premium for fire insurance is dependable on the value of your property and the coverage of the property. Most basic fire insurance premium range from as little as a few dollars to $100 or more per month. It is compulsory to have fire insurance if you are taking any loan or using CPF to purchase any property. If you are buying a HDB flat, you can read more on fire insurance here.
If you are buying a private property. You can read more on fire insurance here.
Service & conservancy charges is usually paid for the upkeep of the HDB estate and based on the HDB flat type. The service & conservancy charges payable for HDB flats range from a $20 for a 1-Room flat to $100+ for an executive flat. You can refer to Jurong Town Council fees here as a reference.
Property tax is a wealth tax levied on property ownership. It is not a tax on rental income. All property owners have to pay property tax based on the value of their property, irrespective of whether the property is occupied or vacant. Lower property tax rates for owner-occupied residential properties.
For non-owner occupied residential properties or investment properties. The owner does not live in the property therefore, owner-occupier tax rates do not apply. Thus, they will be required to be a higher tax rate.
Any rental income collected from renting out the property is considered as taxable income. This rental income will be consolidated as part of your annual income for that financial year and is taxable by IRAS. Read more here.
Yes and No. Generally, the gains derived from the sale of a property in Singapore are not taxable as it is a capital gain. The gains may be taxable if the individual buys and sells property with a profit-seeking motive. When a person is deemed to be trading in properties, the gains from the sale of property in Singapore is considered taxable income. Whether a person is deemed to be carrying on a trade will depend on individual circumstances.
Some criteria used by IRAS to assess if you are trading in properties are as follows:
- Frequency of transactions (buying and selling of properties);
- Reasons for acquiring and selling of property;
- Financial means to hold the property for long term; and
- Holding period