Purchasing a condominium in Singapore is a significant investment, but beyond the upfront costs, there are various ongoing expenses that can catch owners off guard. These hidden running costs are essential to consider for long-term financial planning.
1. Maintenance Fees
Monthly Maintenance Fees: All condominium owners must pay monthly maintenance fees, which cover the upkeep of common areas and facilities such as swimming pools, gyms, and gardens.
Average Cost: Ranges from SGD 300 to SGD 1,000 per month, depending on the condo’s location, size, and amenities.
Example: For a mid-range condo with decent facilities, the fee could be around SGD 400 monthly.
Well-maintained common areas contribute to higher maintenance fees.
2. Sinking Fund Contributions
Sinking Fund: This fund is set aside for major repairs and replacements, such as repainting the building, replacing lifts, or fixing structural issues.
Average Contribution: Often included in the maintenance fees, but can sometimes require additional payments. On average, it could be about 10-20% of the monthly maintenance fee.
Example: If your maintenance fee is SGD 400, you might contribute an additional SGD 40 to SGD 80 per month to the sinking fund.
3. Utility Bills
Utilities: These include electricity, water, gas, and air conditioning. Utility costs can be substantial, especially in larger units with extensive use of air conditioning.
Average Monthly Cost: Approximately SGD 150 to SGD 500, depending on the size of the unit and usage habits.
Example: For a family living in a 3-bedroom condo, expect to pay around SGD 300 monthly.
4. Property Tax
Annual Property Tax: Calculated based on the Annual Value (AV) of the property, which is an estimate of the rental income you could earn.
Tax Rate: Owner-occupied properties have a progressive tax rate starting at 0% for the first SGD 8,000 of AV, with rates going up to 16% for AV above SGD 130,000. Non-owner-occupied properties have rates ranging from 10% to 20%.
Example: For a condo with an AV of SGD 36,000, the property tax could be around SGD 1,120 for owner-occupied and SGD 3,600 for non-owner-occupied.
5. Home Insurance
Home Insurance: While optional, it’s highly recommended to protect against damage or loss.
Annual Premium: Typically ranges from SGD 200 to SGD 500, depending on coverage.
Example: A comprehensive policy might cost around SGD 300 annually.
6. Renovation and Repairs
Renovation Costs: Initial renovations can be substantial, but ongoing maintenance and repairs are continuous expenses.
Average Initial Renovation: Can range from SGD 30,000 to SGD 100,000, depending on the scope.
Ongoing Repairs: Set aside at least SGD 1,000 to SGD 2,000 annually for minor repairs and upkeep.
7. Security and Management Fees
Security and Management: Some high-end condos charge extra for security services and property management.
Additional Cost: Can add an extra SGD 50 to SGD 200 monthly.
Example: A luxury condo with 24/7 security might charge an additional SGD 150 monthly.
8. Parking Fees
Parking Fees: While some condos include parking in the maintenance fees, others charge separately.
Monthly Fee: Typically around SGD 100 to SGD 200 per car.
Example: If you own two cars, you might pay an extra SGD 300 monthly.
9. Special Assessments
Special Assessments: Occasionally, condo management may levy special assessments for unexpected large expenses, like major structural repairs not covered by the sinking fund.
Cost: Can vary widely, sometimes a few thousand dollars per unit.
Example: If a major repair costs SGD 200,000 and there are 50 units, each unit might need to contribute SGD 4,000.
Conclusion
Owning a condominium in Singapore comes with various hidden running costs that can add up significantly over time. Proper financial planning and a clear understanding of these expenses can help condo owners manage their finances better and avoid unpleasant surprises.
Disclaimer: The data and images used in this blog are for illustrative purposes and may not reflect the most current market conditions. For the latest information, always refer to official sources and consult with real estate professionals.
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