What is meant by Income in the context of real estate terms in Singapore?

In Singapores real estate context, income refers to the revenue generated from properties through rent or lease. This can be considered as a return on investment for property owners.

Can you explain what a Mortgage Loan is in Singapores real estate?

A mortgage loan in Singaporean real estate refers to a type of loan used by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged.

How are Mortgage Loans typically repaid?

Mortgage loans are usually repaid over a set period of time with an agreed interest rate. Payments will often include both principal and interest amounts, ensuring that the total debt decreases over time until it reaches zero at the end of the repayment term.

What does Leasehold Estate mean in terms of Singapore Real Estate?

In Singapore, Leasehold Estate refers to properties that are leased for a specific period (usually 99 years or 999 years). The ownership of these properties reverts back to the state once the lease expires.

How does Leasehold differ from Freehold in Singapores Real Estate Market?

Unlike leasehold estates which have an expiration date, freehold estates provide permanent ownership rights without any time limit. However, they tend to be more expensive than leaseholds due their permanency and rarity.

Glossary Of Singapore Real Estate Terms at PatkoProperty

Here's a list of the common terms that you will read about in real estate news or when you talk to your property agent.

I will continue to add more to this list.

ABSD (Additional Buyer’s Stamp Duty): A tax imposed on property owners in Singapore when acquiring additional properties, paid on top of the Buyer’s Stamp Duty. Foreigners pay different rates from Permanent Residents who pay different rates from Singaporeans.
Agent: Typically refers to individual Real Estate Salespersons (RES) but also officially denotes real estate companies. That is me 😄
Bankruptcy Search: A search conducted by conveyancers to verify whether a buyer or borrower has been, is, or is on the verge of being declared bankrupt.
Black and White Houses: Houses in Singapore with a history dating back centuries, representing the traditional bungalow-style residences that provide insights into the city's colonial past. Made famous due to Ridout issue in Singapore.
BTO (Build-To-Order): A category of newly constructed flats by the Housing and Development Board (HDB).
Bungalow: Expensive properties in Singapore, often spanning 2 to 3 stories, undergoing renovations to meet evolving needs and preferences.
Buyer’s Stamp Duty (BSD) Rates:
- First $180,000: 1%
- Next $180,000: 2%
- Next $640,000: 3% (residential and commercial property)
- Remaining Amount: 4% (residential property only)
CMA (Comparative Market Analysis): An assessment of a home's value compared to others in the current property sales market.
CEA (Council for Estate Agencies): A government statutory board overseeing and regulating the real estate industry to safeguard consumers. Technically we are all scared of CEA and being invited for a coffee with them 😄
Community Care Apartment: Senior-friendly housing with specific amenities.
Condo (Condominium): A housing type where a portion of real estate is individually owned, with access to shared facilities. I love selling condos 😃
CPF (Central Provident Fund): A social security savings scheme in Singapore used for funding home purchases.
CSC (Certificate of Statutory Completion): Issued by the building authority, indicating legal completion of a building after obtaining the Temporary Occupation Permit.
DC (Development Charge): Levied when a proposed development enhances the value of a freehold property.
Decoupling: Selling shares of a property to a single owner to acquire additional properties without incurring ABSD.
Default: Occurs when a debtor fails to meet legal obligations as per the debt contract, either unwilling or unable to settle their debt.
Deferred Payment Scheme (DPS): A form of progressive payment allowing property buyers to defer the majority of the purchase payment to a later date, necessitating a bank loan at the point of purchase.
Prime Residential Districts (District 9, 10, and 11): Formerly prominent residential areas for expatriates, no longer in use but recognized for properties like The Orchard Residences, Martin Modern, or The Scotts Tower or Leedon Residence, The Nassim, or One Tree Hill Residences or Soleil @ Sinaran, The Whitley Residences, and Chancery Hill Villas
Development Charge (DC): Incurred when a proposed development boosts the value of a freehold property.
Diplomatic Clause: Allows a tenant to terminate the tenancy with advance notice only after the initial twelve months, with a written notice period or payment of rent in lieu. Very useful and important for expats.
Initial Payment (Down Payment): A fraction of the total purchase price paid upfront to secure a property.
En-bloc Sale: Collective sales of individual units in a private residential or commercial building, often fetching a higher price than market value.
Executive Flat: An HDB flat with distinctive features, including 3 bedrooms.
Fixtures: Personal property attached to the real estate, such as escalators.
Fogging: Mosquito prevention involving the dispersion of pesticides and insecticides in specific areas for sustained results.
Foreclosure: A legal process where a lender secures a court-ordered termination of a borrower’s right of redemption of the pledged property due to default.
Freehold Tenure: A form of land ownership where an estate is held indefinitely. There are not many freehold properties for sale in Singapore
Rental Obligations (Funds Payable): Encompasses various factors related to property rent, including one month's advance rent, two/three months' security deposit, and stamp duties.
GLS (Government Land Sales) : GLS Programme is where the Government sells usable state land to developers through a bidding process. This is the main way in which the government releases land for residential use and is always 99-years lease.
GST (Goods and Services Tax): A consumption tax imposed on the import of goods and services in Singapore is 8% in 2023 and then 9% in 2024.
HDB (Housing & Development Board): The public housing authority in Singapore tasked with planning and developing housing estates.
Heartlands: Areas where the majority of Singaporeans, especially the middle and working classes, reside, often located in HDB estates.
In-Principle Approval (IPA): Granted by banks for a home loan, subject to additional conditions.
Joint Tenancy: Treats owners as a single entity, with the right of survivorship.
Jumbo Flat: A combination of two adjacent flats.
Land Betterment Charge (LBC): Incurred when a proposed development increases the value of a property.
LDAU (Land Dealings Approval Unit): Approval required for foreigners to purchase landed property. Especially important in Sentosa too.
Lasting Power of Attorney (LPA): A legal instrument designating trusted individuals to act on behalf of someone losing mental capacity.
Letter of Intent (LOI): A written offer made by a tenant to a landlord, specifying tenancy terms such as rent, duration, and commencement date.
Letter of Offer: Provided by banks upon loan approval.
Leasehold: A tenure held by a lessee under a lease agreement. In Singapore, houses are sold in 99 years or 999 years leasehold.
LTV (Loan-to-Value): Applicable to all property purchases, allowing borrowers to borrow up to a certain percentage of a property’s value.
Maisonette: Two-story buildings comprising bedrooms, wardrobes, kitchens, and bathrooms, similar to flats on two floors.
Minimum Occupation Period (MOP): The duration a buyer of an HDB flat must reside in it before putting it up for resale. One of the most favourite topic in this blog about what you can or cannot do in MOP.
MSR (Mortgage Servicing Ratio) Rules:
- Applicable to HDB and EC purchases.
- All property loans capped at 30% of a borrower’s monthly income.
Negotiation Element (Neg): Tenants often engage in negotiations based on their budget, with landlords negotiating with different parties.
Option to Purchase (OTP): A legally binding contract between sellers and buyers, safeguarding both parties. Agents LOVE OTPs 😺
Per Square Foot (PSF): A unit of measurement for the area of a property, often used to denote the total price in square feet.
Pest Control Services: Services and assistance provided to homeowners or renters to safeguard houses from insects, utilizing the latest techniques for eradication.
Price per Square Foot (PSF): The price of the property divided by the land area.
Immigration Status Verification: Documents, including a birth certificate, passport, green card, employment letters, and certificates from registered companies, required to verify a tenant's legal citizenship in Singapore.
Private Apartment: Units in a non-public development with fewer communal facilities than a condominium.
Property Tenure Period: Indicates the time during which the property owner has the legal right of use, with HDB flats usually having tenures of 99 years.
Real Estate Salesperson (RES): The official term for property agents, realtors, and brokers in Singapore, as designated by the Council for Estate Agencies (CEA). That is me as well 😏
Mortgage Restructuring (Refinance/Repricing): The process of reorganizing an existing mortgage.
Resale Properties: Refers to pre-owned and previously occupied properties that are available for sale again.
Restricted / Non-restricted Property: Property requiring or not requiring approval from the relevant authority for purchase.
Sale and Purchase Agreement (S&P): Employed in private property transactions.
Seller Stamp Duty (SSD): Levied when selling a property within three years, with varying rates for residential and industrial properties.
Semi-Detached House (Semi): Two houses connected by a common wall, a suitable option for those seeking camaraderie and amicable relations with neighbors.
SIBOR (Singapore Interbank Offered Rate): The rate at which banks lend or borrow funds from each other, commonly used as a benchmark to determine home loan rates.
Singapore Land Authority (SLA): A statutory board maintaining Singapore’s land information database and involved in the development and marketing of state properties.
Stamp Duty: Fees imposed by the government upon a successful property transaction. Can be Buyer Stamp Duties, ABSD or Seller Stamp Duties
Strata Ownership: The sharing of common areas in a multi-level apartment block by some units, denoted by a title associated with townhouses, units, and blocks of flats.
Strata Title: A title to a unit or lot on a plan of subdivision associated with townhouses, units, and blocks of flats, based on the horizontal and vertical subdivision of airspace.
Straits Architecture: Commonly known as the Chinese doll’s house, it comprises shops on the ground floor and residential apartments above, often spanning up to three storeys.
Swap Offer Rate (SOR): Another benchmark rate used to determine home loan rates, considering exchange rates.
TDSR (Total Debt Servicing Ratio): Applicable to non-HDB/new EC purchases, capping all loans at 55% of a borrower’s monthly income.
Occupancy Approval (Temporary Occupation Permit - TOP): Granted by the Commissioner of Building Control upon the completion of a construction project, allowing for occupancy.
Terrace House: A row of linked houses, often featuring gardens.
Loan and Income Limitations (TDSR Limits on Loans and Incomes): Linked to loan tenure, LTV limits, borrower’s age, existing housing loans, property type, and person/company status.
Lease Agreement or Tenancy Agreement: An agreement between the landlord and tenant, outlining various deal facets such as the rented area, down payment, annual rent, agreement period, and other conditions.
Occupancy Approval (Temporary Occupation Permit - TOP): An approval indicating the date when owners or tenants are authorized to reside in a property.
Tenancy-in-Common Ownership: Ownership where individuals are considered separate entities, each capable of passing their share to others.
Terrace House: A row of linked houses, often accompanied by gardens.
Townhouse: A row of residential properties with shared land ownership.
URA (Urban Redevelopment Authority): The national land use planning authority of Singapore, involved in long-term strategic plans, local area plans, and coordination to actualize these plans.
Property Valuation Fee: The fee paid for assessing the value of a property, determining the market value for calculating the maximum loan amount.
View to Offer - VTO: Indicates that the seller has not specified a selling price and will consider offers from prospective buyers.
Walk-Up Apartment: Apartments in a building with five floors or fewer, where upper-floor access is available solely by staircase.