How to Buy Your Second Property

Buying Your Second Residential Property: What Are Your Costs, Implications and How Much CPF Can You Use

Many Singaporeans dream of owning a second property, collecting rental and subsequently selling off the investment unit for a good capital appreciation and sitting on a tidy profit.

In this article, we explore a range of considerations that you may consider before taking the plunge. These include:

Your Eligibility
Loan to Value (LTV) Ratio
Taxes – Buyer’s Stamp Duties and Property Tax
Total Debt Servicing Ratio (TDSR)
Using Your CPF Funds
Rental Yields
Interest Rates
Market Cycle

Lastly, buying a second property requires more careful thought as the purchase will have less leverage and you have to fork out substantially more upfront cash.

Failure to keep up with the installments may lead to you losing both properties.

We urge you to go through your financial plan with a trusted real estate consultant in order to make sure your new acquisition enhances and progresses your portfolio.