Buying a unit at Union Square Residences, located in Singapore’s vibrant District 1, is a notable investment opportunity. For Singaporeans looking to enter the market, understanding the minimum capital required to cover all associated costs is essential. Here’s a breakdown of the initial and ongoing expenses to help you prepare financially.
1. Property Price
Union Square Residences offers various unit sizes, with prices typically ranging from $2,000 to $3,000 per square foot (psf) due to its prime location. For example, a standard 1-bedroom unit might start around $1.4 million, whereas larger units, such as 3- or 4-bedrooms, can reach $4 million or more.
2. Buyer’s Stamp Duty (BSD)
The Buyer’s Stamp Duty is calculated on a progressive scale:
- 1% on the first $180,000,
- 2% on the next $180,000,
- 3% on the next $640,000,
- 4% on amounts exceeding $1 million.
For a $2 million unit, the BSD would amount to approximately $54,600. This fee is payable upon signing the Sale and Purchase Agreement, so having this capital ready is essential.
3. Additional Buyer’s Stamp Duty (ABSD)
If you’re purchasing Union Square Residences as your first property, you are exempt from ABSD. However, if this is a second property, the ABSD is 17%, adding a significant cost (e.g., $340,000 on a $2 million unit). For a third property, the ABSD rises to 25%, so calculating your ABSD requirement is crucial depending on your property portfolio.
4. Minimum Down Payment
For financing, the initial down payment requirement is 25% of the property price, with 5% in cash. For a $2 million unit, you would need $50,000 in cash and $450,000 as a combined cash/CPF down payment, assuming a standard mortgage. This upfront payment allows you to secure financing for the remaining 75%.
5. Legal and Mortgage Fees
Legal fees for conveyancing typically range between $2,500 and $3,500. Mortgage-related fees, like valuation and bank processing fees, can add $300 to $500. Mortgage insurance, though optional, is often recommended for higher loan amounts
6. Ongoing Costs: Property Tax and Maintenance Fees
Annual property tax is calculated based on the Annual Value (AV) of the property. For a high-end property, the tax could average around $2,080 annually based on a projected AV of $60,000. Additionally, monthly maintenance fees are expected to be $300 to $500, adding up to $3,600 to $6,000 per year. These fees cover the upkeep of amenities, such as the fitness center, infinity pool, and shared spaces.
7. Renovation Costs (Optional)
While Union Square Residences units are finished to a high standard, buyers often choose to personalize their space. Renovation costs vary but typically range from $50,000 to $100,000, depending on the level of customization and finishes.
Conclusion For the Minimum Capital for Union Square Residences
To invest in Union Square Residences, a buyer should ideally have a minimum capital of $2.1 million to $3 million. This figure accounts for property price, stamp duties, down payments, legal and mortgage fees, and anticipated maintenance. For a full breakdown or tailored financial advice, consulting a property expert can help you navigate these costs and align your budget with the investment potential Union Square Residences offers in one of Singapore’s most prestigious areas