Another convert to property! :)

[Maeda_Toshiie]

What is mm unit?

Shoebox or mickey mouse flats. Please use google.

 

[stam]

is property at current price levels still a viable investment vehicle for retirement?

 

[SBC]

Private price index has already dropped 9.4% since the peak in Q3 2013.

Up to 10% to 12% adjustment could be threshold, before the removal of ABSD.

 

[liverpool73]

Just a side track to this topic. Am thinking of doing a decoupling and hence would like to check if I can solely engage a law firm to handle everything, without a property agent. If go through a property agent, likely to incur additional costs.

Further to that, I would also appreciate if anyone can recommend me a competent and reasonable cost law firm. Thanks.

 

[mummy1234]

I remember he is always writing about equities and index.
but recently, he have started to research on the value of property investing for the Ordinary investors.

I have also came to the realisation that ordinary investors should not be actively involved in equities/bonds.

THey should just socked it up and just buy property for own stay and buy another investment property.

they will retire happily. Of course.. For me, the most important part of property is trying to time the buy.

http://investmentmoats.com/wealth-building-2/singapore-home-condo-landed-and-hdb-property-prices-grow-over-time/

Hubby also suggested the same, to liquidate all 3 of our properties and decouple and buy one property to our name each. then, can live in one and rent out the other for passive income. This is to avoid ABSD. And to deleverage...

 

[Sinkie]

HDB tightens rules on changes on flat ownership
By Tang See Kit, Channel NewsAsia

SINGAPORE: Keen to have a second property as a “vacation house”, 46-year-old Mr Khoo has been on the lookout for a private condominium since the start of 2016.

The Singaporean, who did not want his full name to be used, currently owns an HDB flat with his wife, so he was keen on taking up his property agent’s suggestion to “decouple” from his existing property to avoid having to pay Additional Buyer’s Stamp Duty (ABSD).

Through this process, Mr Khoo would have transferred his share in his existing HDB flat to his wife, thereby leaving him free to buy a private condominium without having to worry about paying ABSD, as the subsequent purchase would have been seen as his first. Such a practice can mean substantial savings for home owners like Mr Khoo who are on the lookout for a second property.

However, he will now have to shelve his plans due to changes in the rules governing the transfer of flat ownership by the Housing and Development Board (HDB).

In an email response to a query from Channel NewsAsia, the HDB confirmed that changes in flat ownership will now only be allowed under six circumstances including marriage, divorce, death of an owner, financial hardship, renunciation of citizenship and medical reasons.

These new regulations took effect on Apr 1, according to the HDB spokesman, adding that HDB will assess on a case by case basis if the request to change flat ownership does not fall under the above circumstances.

This means that transfers in flat ownership between spouses or immediate family members will no longer be readily approved.

According to industry watchers that Channel NewsAsia spoke to, the practice of “decoupling” – a shift from co-ownership to sole ownership of an HDB – gained popularity among local home owners, particularly since the upward revision of the ABSD in Jan 2013.

Out of every 10 HDB flat upgraders, about 1 or 2 couples choose to "decouple", said R'ST Research's director Ong Kah Seng.

The ABSD, first introduced in 2011 and revised two years later, was part of the Government’s cooling measures aimed at reining in escalating residential property prices.

Currently, Singapore citizens have to pay an ABSD of 7 per cent on a second property, and this increases to 10 per cent for third and subsequent purchases. Meanwhile, ABSD for foreigners is set at 15 per cent for first and subsequent property purchases.

Given the substantial savings, Channel NewsAsia understands that this practice was an “open secret” for home owners looking to avoid hefty duty, with property agents and lawyers readily offering advice to “decouple”.

However, the HDB spokesman stressed that the latest tweaks in regulations "are not meant to prevent married couples from decoupling to avoid ABSD" and are instead part of a regular policy review.

There are market watchers who think the latest move addresses a "loophole" in the current system.

“The essence of an HDB flat is a basic shelter, and it should not be treated as investment product,” said Ku Swee Yong, Chief Executive of real estate agency Century21. “Home owners who engage in ‘decoupling’ have been treating the HDB as an investment tool and given the heavy subsidies by taxpayers and the state in this asset class, this is wrong.”

For R'ST Research's Mr Ong, the tweak in regulations will ensure that buyers are not financially overstretched amid a weak economy.

"If we look at things holistically and strategically, changing of regulations (will) ensure that buyers do not beat the system by decoupling, or purchase a private property on impulse and overstretch property financing capabilities, especially in weak economic times that is set to persist."

Given the sluggish economic conditions, there is a need for the Government to "protect the masses by discouraging them in over-investing in private properties", Mr Ong added

 

[Sinkie]

Just a side track to this topic. Am thinking of doing a decoupling and hence would like to check if I can solely engage a law firm to handle everything, without a property agent. If go through a property agent, likely to incur additional costs.

Further to that, I would also appreciate if anyone can recommend me a competent and reasonable cost law firm. Thanks.

i think they dont allow le

In an email response to a query from Channel NewsAsia, the HDB confirmed that changes in flat ownership will now only be allowed under six circumstances including marriage, divorce, death of an owner, financial hardship, renunciation of citizenship and medical reasons.

 

[highsulphur]

Still possible to decouple for pte properties

 

[liverpool73]

i think they dont allow le

In an email response to a query from Channel NewsAsia, the HDB confirmed that changes in flat ownership will now only be allowed under six circumstances including marriage, divorce, death of an owner, financial hardship, renunciation of citizenship and medical reasons.

Sorry, wasn't clear earlier. Referring to private property. Any good recommendations?

 

[OngHuatHuat]

Sorry, wasn't clear earlier. Referring to private property. Any good recommendations?

Big project.


Prepare some legal fee first,
I dunno whether they consider it as sales to another person or what.

 

[mummy1234]

Actually, to decouple for 2 private properties, it is also quite a stretch for most, me included....each person must be a high earner to support it...so must think carefully, esp since rental yields are so poor for Sg properties cause they are so expensive, maybe investing in REITS will given higher yields and less headaches. Afterall, REITS are a form of property investment in the form of shares...

 

[OngHuatHuat]

Actually, to decouple for 2 private properties, it is also quite a stretch for most, me included....each person must be a high earner to support it...so must think carefully, esp since rental yields are so poor for Sg properties cause they are so expensive, maybe investing in REITS will given higher yields and less headaches. Afterall, REITS are a form of property investment in the form of shares...

Mummy, you do notice some REITs price going down right?
Some of them assets only have 30 or 60 years lease.

 

[focus1974]

Just a side track to this topic. Am thinking of doing a decoupling and hence would like to check if I can solely engage a law firm to handle everything, without a property agent. If go through a property agent, likely to incur additional costs.

Further to that, I would also appreciate if anyone can recommend me a competent and reasonable cost law firm. Thanks.

Actually.. decoupling is solely handled by the law firm since all the paper work are legal binding documents done by the lawyers. Your bank loan part you have to go find the bank.

You want the Property agent to do what for you in a decoupling?? Introduce you the law firm and refer you to the mortgage banker so he can earn 2 referrals fees?

 

[misskiamsiap]

Did anyone here purchase property in Iskandar Malaysia? This firm called Alpha Marketing Sg been conducting seminars in Singapore offering to manage the properties owned by Singaporeans in Iskandar by listing them on airbnb, booking.com, etc. for a cut of the fees. Anyone got experience with this firm and their reputability?

 

[wira]

i think will incur stamp duty as well as its consider sell from one party to another

 

[j1]

Sorry, wasn't clear earlier. Referring to private property. Any good recommendations?

think there must be a threshold of the property price to make paying the stamp duty, topping up of cpf etc worthwhile...possibly $2m and above? think the topup of cpf can be quite significant if the first property was bought years ago.

plus after paying stamp duty etc, how sure are you that you will be buying the 2nd property at the price you want?

I have friends who decoupled and topped up cpf etc and yet to find a property at the right price/location/development

 

[SBC]

If there are existing mortgage loan, the legal few involved for decoupling is much higher.

Another challenge is to meet TDSR requirement after decoupling.

Heng! Manage to complete my HDB in time last year.

 

[j1]

If there are existing mortgage loan, the legal few involved for decoupling is much higher.

Another challenge is to meet TDSR requirement after decoupling.

Heng! Manage to complete my HDB in time last year.

hdb decoupling got to pay lotsa cash into cpf bo?

 

[SBC]

New owner for HDB need to clear loan in full to save on legal for its decoupling. New owner cannot take loan for HDB decoupling. Not too sure if this is also true for private.

 

[SBC]

Actually, to decouple for 2 private properties, it is also quite a stretch for most, me included....each person must be a high earner to support it...so must think carefully, esp since rental yields are so poor for Sg properties cause they are so expensive, maybe investing in REITS will given higher yields and less headaches. Afterall, REITS are a form of property investment in the form of shares...

I presume all 3 units are partial owned by both couple. So need to decouple all 3 units. MY property could be tricky.

Assuming, need to sell all 3 units, the total agent free is at least 3%. Need to the stamp duty for another 2 units. This is likely to negate the 7% for 2nd property.