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What You Need To Know When Buying Second Property

Buying Second Property

Our 7 important notes to run through when you are considering buying a second property in Singapore.

1 – Downpayment if you have an outstanding home loan

The usual loan-to-value (LTV) ratio for bank loans is capped at 75% of the property price or value (whichever is lower). This means that if you’re buying your first home with a bank loan, your downpayment is 25%, cash. This is a substantial cash outlay, so it may not be a good idea to buy a second house until the first is paid off. Speak to your property agent wealth manager to determine if it’s worth going ahead.

2 – ABSD

For Singapore citizens, the Additional Buyer’s Stamp Duty (ABSD) applies when purchasing any property beyond your first. As of 6 July 2018, it’s 12% of the purchase price or property value (whichever is higher). If you’re a Singapore Permanent Resident, you would already have paid 5% ABSD on your first property. This is tripled to 15% for your second property.

For detailed explanation:–ABSD-/


3 – Is it an investment or a second home

Are you buying the second property as an investment, or as a home (e.g. a house for your children)? Owner-occupied residential properties have a property tax that ranges between zero to 16 per cent of the property’s Annual Value (AV)*. Properties that are rented out have a property tax of between 10 to 20 per cent of the AV. 

4 – Minimum Occupancy Period (MOP)

If you are residing in an HDB property, you cannot buy a second property in Singapore until you meet the MOP of five years. This applies to both new and resale flats. Executive Condominiums (EC) are partially privatised after their fifth year (eligible to sell to Singapore Citizens and Permanent Residents) and fully privatised on their tenth year (eligible to sell to foreigners).

5 – Is it the right type of property for your intentions?

If the second property is meant for rental income, then is it right for the prospective tenants you’re targeting? The type of property and location will determine the type of tenant you attract, so make sure there’s a match. 

Buying Second Property

6 – Check the Urban Redevelopment Authority (URA) master plan

Always check the URA master plan for the area. Your second home might suddenly be in the middle of Singapore’s next business hub, or next to a suburban mall. The URA master plan can also affect the rentability and capital appreciation of the property. A property that’s cheap now might see a big spike in value when a lifestyle or transportation hub springs up around it.

7 – Having two mortgages, requires more savings fund

Always have an emergency fund to cope with situations such as retrenchment (in the event of recession or pandemic) or injuries that prevent you from working especially during an unforeseen pandemic. You should have sufficient funds to cope with at least six months of mortgage repayments for both houses before you go ahead and buy a second property in Singapore.


The real value in hiring an agent is the fact that they give you a whole lot of convenience, and have more complete knowledge of the market and how to smoothly affect a property transaction (from purchase/sale to completion). Reach out to us if you need any further consultation or advice on any realty queries.

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