Investing in landed real estate in Singapore is a significant milestone, offering space, privacy, and the potential for long-term value appreciation.

However, it’s essential to consider the ongoing maintenance costs associated with a landed property investment beyond the initial purchase price. Understanding the fees necessary to maintain your property will enable you to properly plan out payments over the long term, ensuring a smooth and enjoyable homeownership experience.

1. Monthly Mortgage Payments

For most homeowners in Singapore, the largest recurring expense is the monthly mortgage payment, which varies depending on the purchase price of the property, the loan-to-value ratio, the interest rate, and the loan tenure. While this fee isn’t directly used to maintain the appearance of your home, it should form the foundation of your financial plan for the property. Use online mortgage calculators or consult with a mortgage specialist to estimate your monthly payments and plan your budget accordingly.

2. Home Insurance

Home insurance safeguards your landed property investment against financial losses due to unforeseen events like fire, theft, or natural disasters. Several factors can influence home insurance premiums, including:

Property Value: The higher the value of your property, the higher the insurance premium.
Location: While Singapore is not generally susceptible to natural disasters, properties in coastal or more flood-prone areas may face higher premiums.
Coverage: The extent of coverage you choose, such as building coverage, contents coverage, and personal liability coverage, will affect your premium.

It’s advisable to compare quotes from different insurers and choose a policy that offers adequate coverage for your needs and budget.

3. Utility Bills

Utility bills are a recurring expense for all homeowners, including those with landed properties. These typically include electricity, water, and gas. To manage and potentially reduce utility costs, consider adopting energy-efficient appliances, implementing water-saving fixtures, and practising mindful consumption habits. Adopting sustainable house designs can also help maximise space efficiency, integrating eco-conscious innovations into daily environments.

4. Property Tax

Property tax is an annual tax levied on all properties in Singapore, including landed homes. The amount of property tax you pay is based on the Annual Value (AV) of your property, which is an estimate of the annual rental value of your property if it were rented out.

Always pay your property tax on time to avoid penalties, and be aware of certain exemptions and rebates available for property tax, such as owner-occupier tax rates and tax rebates for properties with lower AVs.

5. Swimming Pool Maintenance

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OAK @ 23 & 23A Maple Avenue

If your landed property boasts a swimming pool, be prepared for the associated maintenance fees necessary to ensure the pool’s safety, cleanliness, and longevity. This includes regular cleaning of the pool, balancing the pH levels, adding necessary chemicals to maintain water quality, and purchasing or maintaining pool equipment like pumps, filters, heaters, and pool covers.

6. Lift Maintenance

For multi-storey landed properties with lifts, regular maintenance and servicing by qualified technicians is crucial to ensure their safe and reliable operation. The real estate maintenance fee for such services can vary depending on the lift’s type, age, and usage.

While owning a landed property in Singapore is a uniquely distinguished lifestyle and investment opportunity, it’s crucial to understand the full picture of the financial commitments involved with such a decision.

As a trusted landed property developer in Singapore, Brand New Land is committed to transparency and client satisfaction in each of our client transactions. Our islandwide diverse portfolio of landed properties in Central Singapore, landed homes for sale in North Singapore, and beyond, are each designed and built to the highest standards with the needs of our clients in mind.

Understanding Maintenance Fees for Landed Property Owners