Cost Breakdown: Buying New Launch Condo vs Resale Condo

Buying a condo in Singapore is a significant investment, and it’s crucial to be aware of all the associated costs to ensure a smooth transaction. Whether you’re a first-time buyer or looking to expand your property portfolio, understanding these expenses can help you budget effectively and avoid any surprises.

What is a new launch condo?

A new launch condo refers to a property that is being sold by the developer for the first time, usually before or during its construction phase. Buyers of new launch condos often benefit from early-bird prices, promotional discounts, and the latest designs and facilities.

What is a resale condo?

A resale condo is a property that has previously been owned and is now being sold by the current owner. Resale condos are typically ready for immediate occupancy, though they may require renovation or updates depending on their condition.

What are the costs involved when buying a new launch vs resale condo?

1. Purchase Price

The most obvious cost is the purchase price of the condo itself. This will vary widely depending on the location, size, and age of the property. New launch condos may also come with promotional discounts or early-bird pricing.

Based on past transactions, this is the difference in purchase price between a new launch and a resale condo.

2. Option Fee and Exercise Fee

When you decide on a condo, you’ll need to pay an option fee to secure it. This is usually 1% of the purchase price. If you decide to proceed, you’ll pay an exercise fee, typically 4% of the purchase price, bringing the total to 5%.

3. Stamp Duty

Stamp duty is a significant expense. The Buyer’s Stamp Duty (BSD) is calculated as follows:

• 1% on the first $180,000
• 2% on the next $180,000
• 3% on the next $640,000
• 4% on the remainder

Additionally, if this is not your first property purchase, you’ll need to pay the Additional Buyer’s Stamp Duty (ABSD):

• 17% for Singapore citizens on the second property
• 25% for Singapore citizens on the third and subsequent properties
• 25% for Singapore Permanent Residents on the first property
• 30% for foreigners

4. Legal Fees

Engaging a lawyer is essential for handling the legal aspects of the purchase, including title searches and preparing the Sales & Purchase Agreement. Legal fees typically range from $2,500 to $3,500.

If you’re looking for legal conveyancing assistance, reach out to Ohmyhome. We are partnered with the most trusted law firms and Singapore and offer competitive rates starting from $1,850 nett.

5. Home Loan Processing Fees

If you’re taking a mortgage, the bank will charge processing fees, which can range from $200 to $1,000. Additionally, you might incur valuation fees, which usually cost between $200 and $500.

With Ohmyhome, you can also discover the best home loan rates across all the banks. Once you reach out to us, we’ll draw the comparisons for you and find the best loan tailored to your needs.

6. Condo Maintenance Fees

Condo owners are required to pay monthly maintenance fees for the upkeep of common areas and facilities. These fees vary based on the size of your unit and the condo’s amenities, ranging from $200 to over $1,000 per month.

As a one-stop-shop property solution that brings speed, ease, and reliability to property-related services, our team at Ohmyhome Property Management has found the secret to reducing monthly maintenance costs for condo residents all over Singapore.

7. Renovation and Furnishing Costs

The renovation costs for a new launch are typically lower as new units are often ready for move-in. Renovating a resale condo unit, on the other hand, may vary depending on the extent of the work. Don’t forget to factor in the cost of furnishing your new home. To get a better idea of what renovation work your house does and does not need, speak to our team at DreamR today and get a quote while you’re at it.

8. Insurance

While not mandatory, it’s wise to invest in home insurance to protect your property and belongings. Annual premiums can vary, typically costing a few hundred dollars.

9. Miscellaneous Costs

Other potential costs include moving expenses, utility deposits, and property tax. Property tax rates for owner-occupied residential properties range from 0% to 16%, depending on the annual value of the property.

Note: You do not need to pay an agent’s fee when buying a condo in Singapore, be it a new launch or a resale condo. Developers often cover the cost of an agent’s commission for the purchase of new launches, and for resale condos it is covered by the seller.

Breaking down the costs: New Launch vs Resale Condo

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Happy condo hunting!