Property cooling measures have served objectives

[reporter2]

http://www.straitstimes.com/forum/letters-in-print/property-cooling-measures-have-served-objectives

Property cooling measures have served objectives

Dec 6, 2016


It is disappointing to see no indication of a change in stance on the property curbs in place in the Monetary Authority of Singapore's (MAS') latest Financial Stability Review ("MAS cautions property investors as risks emerge"; Nov 30, and "Financials are sound, but watch growing debt: MAS"; Nov 28).

When the property cooling measures were first implemented, the objective was clearly to curb demand and supply.

That objective has largely been achieved as demand has dropped and growth in housing loans has eased considerably.

Some of the measures have already served their objectives.

I cannot see how keeping measures, such as the Additional Buyer's Stamp Duty (ABSD) and Seller's Stamp Duty (SSD), in place can help.

If the concern is about some families overextending themselves financially in an uncertain economic environment, there are already strict limits on borrowing which protect buyers.

MAS can tighten and more strictly enforce them.

By removing the ABSD and SSD, the authorities would be opening up an avenue for some of these property owners to exit the market and free themselves from their liabilities.

Patrick Tan Siong Kuan

[Arcachon]

There are another way to get around ABSD and SSD.

[Singleton]

Probably need another year of low depreciation and another 5-10% drop and interest rate hike

then ABSD reduced

[saintgtril]

There are another way to get around ABSD and SSD.

Please share the other way.

I know this way (http://www.straitstimes.com/singapore/housing/hdb-tightens-rules-for-transfer-of-flat-ownership). The loophole has been closed. Oh well.

[Kelonguni]

Barring extreme situations or strategies such as divorce or family situations, it is now next to impossible for a couple or individual to own HDB plus private without paying ABSD.

A few possibilities remain such as buy a resale under 1 name and wait for 5 year TOP to buy another.

Another possibility is to sell HDB to buy two private, or a private under 1 name and another private some years later under another name.

Still another is to aim for ABSD remission but work with percentage of shares in new property.

If want, better hurry cos I know those who refused my advice earlier going for some of these. Sooner or later, loopholes will also disappear.

[Kelonguni]

Sorry HDB should be 5 year MOP.

[Arcachon]

Please share the other way.

I know this way (http://www.straitstimes.com/singapore/housing/hdb-tightens-rules-for-transfer-of-flat-ownership). The loophole has been closed. Oh well.

Need to know at what state of your property investment in order to share.

You can pm me if you not comfortable to share in the forum.

[Werther]

Barring extreme situations or strategies such as divorce or family situations, it is now next to impossible for a couple or individual to own HDB plus private without paying ABSD.

A few possibilities remain such as buy a resale under 1 name and wait for 5 year TOP to buy another.

Another possibility is to sell HDB to buy two private, or a private under 1 name and another private some years later under another name.

Still another is to aim for ABSD remission but work with percentage of shares in new property.

If want, better hurry cos I know those who refused my advice earlier going for some of these. Sooner or later, loopholes will also disappear.


Bro, can share how share holding work in order to lessen the ABSD.. my lawyer say cannot...thanks

[Kelonguni]

Bro, can share how share holding work in order to lessen the ABSD.. my lawyer say cannot...thanks

http://propertyrocking.sg/additional-buyers-stamp-duty-absd/

Point 8. Check with another lawyer who has done it. My friends' interpretations are slightly different but a few are definitely going there.

[Werther]

http://propertyrocking.sg/additional-buyers-stamp-duty-absd/

Point 8. Check with another lawyer who has done it. My friends' interpretations are slightly different but a few are definitely going there.

Thanks.

Read through and the share holding is only for properties under construction.

Any idea for completed or old property possible?

[Kelonguni]

Any details of who holds what between a couple / children? If both/all already hold multiple there is no way to avoid ABSD as far as I know.

ABSD is meant to tax multiple property owners.



Thanks.

Read through and the share holding is only for properties under construction.

Any idea for completed or old property possible?

[Arcachon]

8. Are there any other ways apart from decoupling ?

A lawyer recently shared with us a method called the 99-1% method which is only applicable for BUCs (Building Under Construction). This involves the party who has to pay the ABSD buying over 1% of the shares in a subsale.

Take note that this method involves ​

16% Sellers Stamp Duty on the 1%
Buyers Stamp Duty
ABSD on the 1%
Additional Lawyers Fees and they should be informed and prepped before you place any option fees or downpayments.
When calculations are done, this can result in significant savings. However, consult your lawyers prior to taking any action. We may be able to assist in providing you basic details but only the lawyers will be able to provide you proper advice.

[Werther]

sian, still cannot buy.