The bank or intermediary chosen buys the home to which the private individual is interested and offers it to him for a monthly fee (the value of which is higher than that of a normal rent) for an agreed period of time, as well as of a maxi final installment. In essence, it is a sort of lease (the minimum duration is eight years), but with some differences: at the end the user can choose whether to withdraw from the contract.
Ask to renew the lease or purchase the property, redeeming the remaining part of the value and discounting the fee paid. In case of difficulty in paying the installments (for example, for termination of the employment relationship) it is also possible to suspend the payment, for one time only and for a maximum of twelve months. If it is no longer possible to pay the installments definitively, on the other hand, the house is sold and the user is given back what he is responsible for, net of the expired and unpaid rents or, for example, of any expenses related to the sale of the ‘estate.
Don’t worry, though, because even if money is not available immediately, there are some solutions that come in handy: from rent to buy to sale with retention of ownership. Deductions for under-35s The Law has made this operation particularly attractive for those under 35, provided they have an annual income of less than 55 thousand dollars and that the property is destined, within one year of delivery to a principal residence.
The latter can in fact benefit from a deduction equal to 19% of the costs incurred for the Buying Private Property in Singapore fees (up to a maximum of 8 thousand dollars); the same deduction, up to 20 thousand dollars of amount paid, is expected on the costs related to the final redemption of the property. For those who have completed 35 years, however, the tax deduction is halved (4 thousand dollars for that on fees and 10 thousand dollars for that on the redemption).
Pros and cons This solution has several advantages: among these, the possibility of financing 100% of the property value, the absence of preliminary investigation fees and notary fees up to the time of redemption of the property; finally, as already underlined, the possibility of suspension of the installments and Buying Private Property in Singapore tax deductions for the under 35. Among the disadvantages, instead, the first aspect to consider is the payment of an initial fee of an amount not less than 15% of the value of the motionless and the final maxirata. In addition to the duration more limited to that of mortgages, ie not more than 20 years.
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