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Jadey
11-08-11, 15:53
suppose I buy an apartment in a old development that goes en bloc within a year, do I need to pay SSD?

SpinCity
11-08-11, 16:28
suppose I buy an apartment in a old development that goes en bloc within a year, do I need to pay SSD?

YES, you have to pay SSD

Jadey
11-08-11, 16:34
YES, you have to pay SSD

even if you are selling against your will also need to pay. Like dat how to buy properties with enbloc potential?

mygeemeel
11-08-11, 16:47
Of course must pay SSD. Nowadays enbloc not in fashion already.

propertyinvestor
11-08-11, 16:50
suppose I buy an apartment in a old development that goes en bloc within a year, do I need to pay SSD?

Gov don't care if it is going enbloc. If u sell, u pay. That's simple.

AAA
11-08-11, 17:36
Gov don't care if it is going enbloc. If u sell, u pay. That's simple.

If it can go enbloc, you will never make loss, at least a breakeven (financial loss ruling), if the proceed is attractive enough (at least 40% or more), you can still make a profit after paying SSD even in its 1st year. Enbloc will take one to two years to organise and materalise ("IF" can find a buyer) and SSD will be in its 3rd ,4th year already.......... It is really up to individual investment strategy and the attractiveness of the unit/site. Just my thought (2 cents)....

Jadey
11-08-11, 18:28
If it can go enbloc, you will never make loss, at least a breakeven (financial loss ruling), if the proceed is attractive enough (at least 40% or more), you can still make a profit after paying SSD even in its 1st year. Enbloc will take one to two years to organise and materalise ("IF" can find a buyer) and SSD will be in its 3rd ,4th year already.......... It is really up to individual investment strategy and the attractiveness of the unit/site. Just my thought (2 cents)....

how can it possible be that you will NEVER make loss?

Considering that 1st year SSD is 16%, plus 3% stamp fee, renovation, moving cost etc you will need at least 20% "enbloc margin" to cover the cost alone.

marktkt22
11-08-11, 19:09
Confirm must pay. My fren kanna, sad story .
Make big loss for no reason

mygeemeel
11-08-11, 19:18
Confirm must pay. My fren kanna, sad story .
Make big loss for no reason

Share the details why he lost, pls.

SpinCity
11-08-11, 20:23
how can it possible be that you will NEVER make loss?

Considering that 1st year SSD is 16%, plus 3% stamp fee, renovation, moving cost etc you will need at least 20% "enbloc margin" to cover the cost alone.
The "no financial loss" rule means the price each individual owner received must not be lower than their respective original costs, excluding any renovation, repairmen costs
Normally the Enbloc premium will be much higher than the highest costs among the curren owners, but the 16% SSD does make Enbloc salemore difficult

Jadey
12-08-11, 10:57
The "no financial loss" rule means the price each individual owner received must not be lower than their respective original costs, excluding any renovation, repairmen costs
Normally the Enbloc premium will be much higher than the highest costs among the curren owners, but the 16% SSD does make Enbloc salemore difficult

the question is can you include 16% SSD as part of the cost?

howgozit
12-08-11, 14:18
The "no financial loss" rule means the price each individual owner received must not be lower than their respective original costs, excluding any renovation, repairmen costs
Normally the Enbloc premium will be much higher than the highest costs among the curren owners, but the 16% SSD does make Enbloc salemore difficult

You can suffer either financial loss or a shortfall or both.

If you suffer financial loss, you can object to the sale to STB (Strata Title Board) with details and get it directed to the SC (Sales Committee) for them to cover your losses.

Below are some examples of the court's ruling in Regent Court and Tampines Court.

http://3.bp.blogspot.com/_-vq5BiDqSCQ/Sbejc68SviI/AAAAAAAAArs/1Ttdlm3L-bw/s1600-h/scan0006.jpg

http://3.bp.blogspot.com/_-vq5BiDqSCQ/SKtko9H2MxI/AAAAAAAAAUU/Zg2vlf3NAK0/s1600-h/scan0004.jpg

howgozit
12-08-11, 15:29
the question is can you include 16% SSD as part of the cost?

http://3.bp.blogspot.com/_-vq5BiDqSCQ/SKtko9H2MxI/AAAAAAAAAUU/Zg2vlf3NAK0/s1600-h/scan0004.jpg

For the determination of financial loss, stamp duties and legal fees are allowed deductions whereas renovation and interests costs are not.

ysyap
12-08-11, 21:47
Provided the owners need your signature to form the required percentage, they might just absorb your losses on SSD as a collective group. LOL! Think can always see the response of the other home owners! :spliff:

howgozit
12-08-11, 22:04
Provided the owners need your signature to form the required percentage, they might just absorb your losses on SSD as a collective group. LOL! Think can always see the response of the other home owners! :spliff:

Actually, even if the SC has the required percentage for the sale it can't go through if an objector can prove financial loss. Then this finacial loss must be made good.

The law however does not specify what can be considered for financial loss but precedence from STB (Strata Titles Board not Singapore Tourism Board:ashamed1: ) has shown legal fees and stamp duties are applicable.

However, if the case is a shortfall then the court may allow it to proceed.

DC33_2008
13-08-11, 09:43
Before CM of SSD. Buying shortly in a development that enbloc is like striking lottery. Now, is bad news:scared-4:
Confirm must pay. My fren kanna, sad story .
Make big loss for no reason

buttercarp
13-08-11, 10:08
Before CM of SSD. Buying shortly in a development that enbloc is like striking lottery. Now, is bad news:scared-4:

Ya lor. So now who dares to buy a unit with a potential enbloc sale.

DC33_2008
13-08-11, 10:15
Buying into pearlbank is a risk now. Not many adverts with the word enbloc.
Ya lor. So now who dares to buy a unit with a potential enbloc sale.

howgozit
13-08-11, 10:41
I think it is still ok bcoz of financial loss ruling. At the most don't make.

But may still end up in a shortfall situation. Best if possible don't use CPF for the purchase.