How Much Money do you need to invest 2nd property in Singapore?

Real Estate

So, to make money out of it, you want to be a property owner and purchase a second property. That’s a wonderful aspiration, but you have to know the real numbers if you want that to be more than a fantasy. Think of investment in property as starting up a business. Before jumping into the game, you need to make sure you’re appropriately capitalized.


Three Separate Figures

We use three separate figures in our instances, since we do not know the particular form of property sector you may like to reach. For example , the cost of investing in a tiny shoebox unit is far smaller than whether you were to start purchasing a luxurious condo in District 9.

We would presume for all intents and purposes that you are taking out a second loan for your second house.

Bear in mind that these statistics are averages, merely intended to offer you a general understanding of the amount necessary.


Preparation for your Property Purchase

The set of preparations is very common, regardless of the sort of property you’ll invest in. You may need to make arrangements for:

  • Downpayment
  • BSD & ABSD
  • Renovation Cost
  • Agent Fee
  • Insurance
  • Maintenance fee
  • Mortgage repayment



For a second housing loan, the overall loan to value (LTV) ratio, whether the tenure is 30 years or fewer, is 50%. The maximum LTV for the third and subsequent loan is 40%.

Note: The LTV is focused on the amount, not the number of houses, of home loans that you have. Also, whether you are utilizing a guarantor, remember that guarantors must now be identified as co-owners as of 2013.

If the 50 percent left, at least 25 percent of the payment must be in currency. Your CPF Ordinary Account (CPF OA) will supply the remainder. For instance:

The lower down payment is $375,000 for a shoebox unit priced at $750,000. You must be willing to pay $187,500 of this sum in currency. With our CPF OA (or a mix of cash and CPF OA funds), the remainder will be accounted for.

The lowest down payment will be $600,000, with a standard condo priced at $1.2 million. The cash down minimum will be $300,000.

The smallest down cost will be $2.75 million on a premium apartment priced at $5.5 million. $1,375 million will be the required cash down.

There is legal documentation required in regard to this. We’re going to say the conveyance fees are about $2,200.



If you are a resident of Singapore or not, you would have to pay ABSD for assets outside the first one. On their second house, residents pay 7% ABSD, and 10% ABSD on their third property.

Beyond their first home, permanent residents pay 10% ABSD for all land.

Our sample unit incurs an ABSD of $52,500 for people. An ABSD of $84,000 would come from our sample condo, and an ABSD of $385,000 would come from our luxurious condo.

For Simple Stamp Duty (BSD) estimates, please visit the website of the Inland Revenue Authority of Singapore (IRAS). For sample properties, we determined the BSD as follows:

BSD is around$17,100 for the shoebox. BSD is about $30,600 for a home. BSD is about $159,600 for a premium home.


Renovation Cost

Original budgets for construction estimated to be in the $30,000. About why? This is because most loans for construction are limited at $30,000, or your revenue for six months. With this number, most contractors or interior designers would be working.

We will, however, push the $30,000 by another 20 percent, as most renovations appear to surpass the estimate by this margin (and the resulting furnishings). Therefore, the construction expenses for the shoebox and the apartment would be counted at about $36,000.

You might wonder why it costs as much to renovate the shoebox (500 square feet or less) as the average condo (which we will put at about 1,400 square feet). In our experience, to maximize their attractiveness, shoebox units seem to have more sophisticated design features.

For instance, considering their limited size, many shoebox units incorporate amenities such as walk-in wardrobes in order to wow renters and maximize the possible rental revenue. For an owner in land. Fitting this in a limited room means pricey construction labor, which helps to compensate for the savings by providing fewer floor space to tile, coating less wall surfaces, etc.

However, we will put the renovation expense at about $100,000 with respect to the luxury condo. This is conservative; we know that restoration and furnishings alone cost penthouse units upwards of $1 million.


Agent Fee

If you are using a rental agent to locate a client, plan to spend one month’s rent on a two-year contract to secure a space. The commission is typically half a month if the occupant has a one-year contract. You will learn all about it in depth here.

We highly suggest that you do so only while choosing the next tenant, whether you wish to miss the agent. From negotiations to documentation, remember the diverse roles that agents perform. Observe how the property is being sold, and how prospective buyers are persuaded and reassured. Only ask questions. You should consider doing it yourself next time.

For the shoebox studio, we can expect a rental rate of $3,000 a month and a rental rate for the condo of $4,000 a month. We would expect a rental cost of $15,000 per month for the luxurious condo.



You should not depend entirely on simple fire protection if you are a landlord / property investor. If your occupant utterly ruins the building, you may like to be paid. Often, remember that simple fire insurance does not compensate harm by third parties-if a fire in your unit destroys the products of a neighbor, you may be responsible for it.

The bulk of extensive home insurance policies cost about $240 a year (the nice ones, as part of the bundle, often provide things such as personal injury insurance).

For all our sample properties, we can assume a similar rate.


Mortgage Repayment

A mortgage fund, kept in preparation for emergencies, consisting of six months of mortgage repayments. This means that you retain more staying leverage in the case that anything goes poorly (e.g. retrenchment), you can choose to wait indefinitely to sell at a decent price or to find a new work to stop selling entirely.

A primary determinant of performance in property investments is retaining control.

Some landlords wish to miss the fund, but against it, we suggest. At least, if you can’t afford this right now, save time for it to be made.

On each of our sample homes, we have projected mortgage repayments on a 25-year loan term of 1.8 years per annum.

Monthly repayments are about $1,553 for the shoebox, which means a $9,318 fund size. Monthly repayments for the standard condo are about $2,485, which suggests a fund size of $14,910. Monthly repayments are around $11,390 for the luxurious apartment, indicating a fund size of $68,340.


Maintenance Fee

We’re going to put the shoebox’s maintenance payments at about $200 a month, and the condo’s maintenance fees at $300 a month. Maintenance fees may be about $450 for the luxurious condo.

Land taxes are based on the property ‘s annual valuation (AV), which is the rental revenue per annum. Taxes are progressive and, along with the AV, rising growing. See the (IRAS) home page for more information.

We have the taxation for our sample assets sorted out. Taxes are about $3,730 per annum for the shoebox. Taxes are $5,234 per annum for the condo. The luxurious condo tax is around $30,080 per annum.


Total Cost You should be preparing for your 2nd property in Singapore

You would need an initial amount of about $505,918 (including CPF use and the fee of the first agent) to start investing with the shoebox. With royalties, operating expenses, benefits, and all the rest, monthly costs are about $2,083.

You would need an initial amount of about $781,510 to start investing in the condo. The monthly expense is about $3,241.

You would require an estimated amount of about $2.1 million to start investing in a luxurious condo. The monthly expense is about 14,366 dollars.

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