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Old 14-04-2019, 12:00 AM   #616
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Not only just 12% ABSD, he should also factor in the 3% stamp duty.
Yes, taxes, legal fees , valuation fees etc.
The reason I left out the 3% stamp duty etc is that these are common basis, all buyers faced. I was trying to bring across the point that buyer should include their 12% or 15% whatever it is in their consideration of purchasing price. It is no longer the ‘selling price’ or what first time buyers pay. Second time buyers face a different ‘purchase price’ which should be used for investment calculations.

The 12 % absd is to let buyers know that since they are buying for investment, can they not find a better form of investment (considering the hefty tax) other than property? If really cannot, then pay Agong, they like your money.

Last edited by ThinkCarefully; 14-04-2019 at 12:23 AM..
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Old 14-04-2019, 09:12 AM   #617
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Wahhh thanks all for the suggestions. Well I will see 5-10 years from now ba. For now, I’m happy with my first property. Will definitely save up in the meantime. Glad to be part of this property journey at a young age. Hope to learn more stuff from you all.
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Old 14-04-2019, 09:43 AM   #618
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Wahhh thanks all for the suggestions. Well I will see 5-10 years from now ba. For now, I’m happy with my first property. Will definitely save up in the meantime. Glad to be part of this property journey at a young age. Hope to learn more stuff from you all.
Bro, u r doing well. I only started early 30s. Grad from Uni at the age of 25 (with zero saving at that time), work for 5-6 years before I can save for my first property. (Glad I didn’t buy a car back then. I took bus/mrt to work. Everyday, eat my mum’s home cook food, so easier to save more money)
However I still started later than u.
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Last edited by NiShiZhu; 14-04-2019 at 09:46 AM..
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Old 14-04-2019, 10:09 AM   #619
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If he wants to do that, he and his dad can buy an EC instead, that will be even better.

If u have plans to own multiple properties, your first property should include one of your parents name (example your Father if he still working and got income) plus your name. U can give 99% ownership to your Father and u put yourself 1% ownership.

When u want buy 2nd property, u need to decouple with your Father, ur Father only need to pay stamp duty based on 1% of the value of your property. Plus legal fee of $5600 roughly.
Of cos, your Father will need bank’s new loan approval as this is treated as a new sale.
But normally your Father age is a crucial factor due to the short loan tenure. Since u r only 25 year old, I’m assuming your Father age is 50 years old and he can still probably still can get 15 years loan.
Not forgetting your 1 bedder is Low quantum also, so should be ok.

Then when u buy 2nd property, u total free from ABSD.
Because of your age advantage, you are able to buy your second property at a higher quantum since I assume your earning power will also increase over time plus your age allows u to go for longer loan tenure.
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Old 14-04-2019, 10:11 AM   #620
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The future buyers will not care, but the owners will care. And hence the upward trend of property price. In the end gov take in the 12% and eat popcorn while watching the show.

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.
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Old 14-04-2019, 10:13 AM   #621
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Second property owners will indeed have to sell at a higher price but then the second property is used for rental anyway, so just wait while someone else help you pay part of your instalment monthly.

Yes, taxes, legal fees , valuation fees etc.
The reason I left out the 3% stamp duty etc is that these are common basis, all buyers faced. I was trying to bring across the point that buyer should include their 12% or 15% whatever it is in their consideration of purchasing price. It is no longer the ‘selling price’ or what first time buyers pay. Second time buyers face a different ‘purchase price’ which should be used for investment calculations.

The 12 % absd is to let buyers know that since they are buying for investment, can they not find a better form of investment (considering the hefty tax) other than property? If really cannot, then pay Agong, they like your money.
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Old 14-04-2019, 10:15 AM   #622
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Actually society blames property for making Singaporeans relying on their properties too much and neglect entrepreneurship and innovation. But I see also how property makes one work hard for their dream. Bro 1993newbie is a good example.

Wahhh thanks all for the suggestions. Well I will see 5-10 years from now ba. For now, I’m happy with my first property. Will definitely save up in the meantime. Glad to be part of this property journey at a young age. Hope to learn more stuff from you all.
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Old 14-04-2019, 11:47 AM   #623
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Second property owners will indeed have to sell at a higher price but then the second property is used for rental anyway, so just wait while someone else help you pay part of your instalment monthly.
Yes, that being said, before you collect your first rent, pay up 3 to 4 YEARS of rent (as absd) to Agong first. And when a second property owner wants to sell to another second owner, the seller bear in mind they need high price to cover the purchase absd and the buyer considered the higher ‘purchase price’ based on the absd as well, double consideration for the transaction to go through.
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Old 15-04-2019, 03:09 PM   #624
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https://www.edgeprop.sg/property-new...box=1555311483

Why Kingsford Huray Development was issued a rare 'no-sale licence' by URA for the new development at Normanton Park site.. wow !
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Old 15-04-2019, 03:22 PM   #625
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https://www.edgeprop.sg/property-new...box=1555311483

Why Kingsford Huray Development was issued a rare 'no-sale licence' by URA for the new development at Normanton Park site.. wow !

Good luck to those kingsford buyers on two counts. If this no-sale license is due to feedback and complaint, you can imagine how good those are. If the developer is now in trouble, how much effort do you think they will put in to resolve those complaints? (Questionable)
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Old 15-04-2019, 06:26 PM   #626
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Kingsford property owners will cry soon.
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Old 15-04-2019, 06:40 PM   #627
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“With the no-sale licence, the developer is more likely to be hit by the ABSD clawback at the rate of 15% (the prevailing rate then), as developers have to develop and sell all their residential units within a five-year period in order to comply with their undertaking for ABSD remission, says Lee Liat Yeang, senior partner at Dentons Rodyk Real Estate practice group. Upon clawback of the ABSD, there’s also a 5% interest payment chargeable by Inland Revenue Authority of Singapore (IRAS) on the ABSD amount, from the 15th day after the date of the en bloc sale and purchase agreement until the date of payment.”

So does that mean we are expecting fire sale after normantan park is completed.
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Old 15-04-2019, 06:59 PM   #628
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Time to save bullet! In 4 years time we shall see. Hehehesheehehe

“With the no-sale licence, the developer is more likely to be hit by the ABSD clawback at the rate of 15% (the prevailing rate then), as developers have to develop and sell all their residential units within a five-year period in order to comply with their undertaking for ABSD remission, says Lee Liat Yeang, senior partner at Dentons Rodyk Real Estate practice group. Upon clawback of the ABSD, there’s also a 5% interest payment chargeable by Inland Revenue Authority of Singapore (IRAS) on the ABSD amount, from the 15th day after the date of the en bloc sale and purchase agreement until the date of payment.”

So does that mean we are expecting fire sale after normantan park is completed.
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Old 15-04-2019, 07:06 PM   #629
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https://www.businesstimes.com.sg/rea...es-up-in-march

59.3% increase in resale private non-landed homes sales volume http://www.newsloop.co/u/eryb0q


How is it even possible for CMs to be lifted?
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Last edited by NiShiZhu; 15-04-2019 at 07:38 PM..
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Old 15-04-2019, 08:03 PM   #630
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“With the no-sale licence, the developer is more likely to be hit by the ABSD clawback at the rate of 15% (the prevailing rate then), as developers have to develop and sell all their residential units within a five-year period in order to comply with their undertaking for ABSD remission, says Lee Liat Yeang, senior partner at Dentons Rodyk Real Estate practice group. Upon clawback of the ABSD, there’s also a 5% interest payment chargeable by Inland Revenue Authority of Singapore (IRAS) on the ABSD amount, from the 15th day after the date of the en bloc sale and purchase agreement until the date of payment.”

So does that mean we are expecting fire sale after normantan park is completed.
Now make me even more concern about Normanton Park's quality. They might rush to TOP
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