Important Factors To Consider When Purchasing Commercial Real Estate

The commercial real estate scenario in Singapore is at a very exciting stage for all real estate investors in the city. Investors will find many opportunities in this real estate industry. Additionally, the commercial sector of the city's real estate industry also provides owners with tax exemptions from Additional Buyer's Stamp Duty (ABSD), Seller's Stamp Duty (SSD), and a number of other regulations applicable to foreign ownership. This will help you save a lot of money and will affect your final winnings in the long run. When investing in commercial real estate in Singapore City, an investor has two main options. You can either invest as an individual alone or form a legal entity and invest as a private limited partnership or limited liability partnership (LLP). Each of these techniques has a number of important areas that investors should pay close attention to. Some of them are listed below.

The Central Provident Fund cannot be used. 

If you are investing as an individual, please note that you cannot use savings accumulated in a central provident fund or savings account as a down payment. Therefore, the down payment for investing in commercial real estate such as Tai Seng Point must be made in the form of a cash deposit. Therefore, investors must have cash before planning such investments in the city. Additionally, additional cash payments may be required if the property is unable to generate sufficient income to repay the loan on time.

Therefore, investors must either secure immediate returns or save enough funds in the bank for time-bound repayments. The property tax for all commercial real estate in the city is 10% of the property value at the end of each year. The tax applies to all commercial real estate in the city, regardless of whether the property is rented or occupied. However, owners of vacant properties can claim a tax refund, depending on the status of the property. Such refunds and withdrawals apply not only to commercial properties but also to residential properties in the city.

Rental and investment income opportunities

Before investing in a commercial property like Tai Seng Point Singapore, it is important to research and understand the different rental yield and capital generation options. Commercial properties generally have significantly higher rental values than residential properties, but they also have higher maintenance costs. All these costs must be included in the calculation to determine the annual return on investment for residential real estate in Singapore. These factors ensure the profitability of your investments and significantly reduce the risk of loss.

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