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Investing for singles

Singapore listed 5th costliest city for expats
Aside from Singapore and Hong Kong, other Asian cities in the top ten list were Tokyo, Seoul and Shanghai, which were listed third, sixth and eighth, respectively

For the fourth consecutive year, Singapore is the world’s most expensive city, outranking Hong Kong and Zurich which came in second and third respectively.

The Economist Intelligence Unit’s cost-of-living survey has consistently ranked Singapore as the world’s most expensive city. Although housing can be rather pricey, it’s still possible for singles to secure a home by taking advantage of various grants and financing options.

1. Apply for grants

The supply of HDB flats increased from 880,000 units in 2006 to 1.01 million units last year. As such, singles have more options to purchase public housing through the HDB’s two main eligibility programmes – the Joint Singles Scheme (JSS) and Single Singapore Citizen Scheme (SSCS). Under these schemes, eligible singles can apply for grants when purchasing a two-room Flexi flat in a non-mature estate. If you’re a first-time buyer who is 35-years-old and above, you may qualify for the Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG) of up to $20,000, depending on your income. Other factors taken into consideration when assessing eligibility for the JSS and SSCS are past and current property ownership and citizenship status.

2. Alternate financing options

Investing in property on a single income can be challenging, but with proper research, you can find different ways to fund your real estate purchase. Other than taking an HDB or bank loan, consider pooling your resources with up to three single friends. With the combined cash and Central Provident Fund (CPF) savings, barriers-to entry on owning a property are less. Naturally, precautions must be taken in terms of the long-term goals of each investor because plans may change. Additionally, charges such as the Seller’s Stamp Duty may apply if the investment property is disposed within three years.

3. Apt property deals

Increasingly, developers are offering various discounts and marketing schemes like Deferred Payment Schemes, where you can own a property with minimal cash down and immediately take possession to start renting out, with the option to purchase 18 or 24 months later. You may be tempted to take advantage of such offerings, but do your due diligence before committing to any property purchase. Find smart deals by studying the market and reading up on developers and their past projects.

 

 

The PropertyGuru News & Views

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