About Jet Lim

ABSD is an extra tax you pay on top of the normal Buyer's Stamp Duty when purchasing residential property in Singapore. Singapore Citizens pay 20% ABSD on their second property, PRs pay 5% on their first and 30% on their second, and foreigners pay 60% on any residential purchase. It's one of the biggest costs to factor in.

TOP is the date when the government certifies that a new development is safe to move into. For new launches, this is typically 3-5 years after the project launches. You start paying your full mortgage only after TOP if you're on the Progressive Payment Scheme.

Freehold means you own the land forever. 99-year leasehold means your ownership expires after 99 years from the date the lease was granted (not from when you buy). Most new condos in Singapore are 99-year leasehold. Freehold properties tend to command a premium but the price gap doesn't always translate into better returns.

PSF is the most common way to compare property prices in Singapore. You take the total price and divide by the unit size in square feet. For example, a $1.5M unit that's 1,000 sqft = $1,500 psf. It helps you compare across different projects and unit sizes on a like-for-like basis.

When you buy a new launch condo, you don't pay everything upfront. Instead, you pay in stages as construction hits milestones — foundation, concrete frame, walls, etc. This means lower monthly mortgage payments during the building period. Only after TOP do you start paying the full amount.

The OTP is the document you sign when you decide to buy a property. For new launches, you sign the Sales & Purchase Agreement directly. For resale, the seller grants you an OTP (usually for a $1,000 option fee for HDB or 1% for private), giving you 21 days (HDB) or 14 days (private) to decide whether to proceed.

BSD is the standard tax everyone pays when buying property in Singapore. The rates are: first $180K at 1%, next $180K at 2%, next $640K at 3%, next $500K at 4%, next $1.5M at 5%, and anything above $3M at 6%. This applies to all buyers regardless of nationality or number of properties.

ECs are a hybrid between HDB flats and private condos. They're built by private developers with condo facilities, but come with income ceilings and other eligibility restrictions. After 5 years you can sell to Singaporeans/PRs, and after 10 years the restrictions are fully lifted and it becomes essentially a private condo.

SSD is a tax you pay if you sell your property within 3 years of buying it. The rates are 12% if sold in Year 1, 8% in Year 2, and 4% in Year 3. After 3 years, no SSD. This is the government's way of discouraging property flipping.

TDSR limits your total monthly debt repayments (including the new mortgage, car loans, credit cards, etc.) to 55% of your gross monthly income. This is the bank's way of making sure you can actually afford the loan. It's one of the first things I check when clients ask me what they can afford.

MSR applies only to HDB flats and ECs. It caps your monthly mortgage payment at 30% of your gross monthly income. This is stricter than TDSR and is the reason why some buyers who can technically afford a private condo on paper may struggle to get an HDB loan approved.

En bloc (or collective sale) is when all the owners in a development agree to sell the entire site to a developer. The developer then tears it down and builds something new. If you own a unit in an en bloc sale, you typically get a premium above market value. It's like hitting a mini property lottery, but the process can take years.