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Old 13-04-2019, 11:45 PM   #615
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Join Date: Jan 2005
Posts: 1,188
The ABSD is supposed to make your purchasing price higher so that you may consider all your investment options together. If you intent to purchase a 1 million property, you should consider the actual purchase price to be 1.12 million (if you pay 12%absd). If you still think that 1.12 mil is a reasonable price for that property, with reasonable rental and decent potential price appreciation above 1.12 mil, then go ahead.

If you have other investment options with better returns, then you may be better off with those investments.

Remember, your purchase price basis is no longer 1 mil, but 1.12 mil.
Your future tenant or buyer will not care or consider if you paid 12% absd or 30% or no absd.
Not only just 12% ABSD, he should also factor in the 3% stamp duty.
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