Singapore Expats

Raising Additional Buyer's Stamp Duty (ABSD) Rates

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
Post Reply
User avatar
malcontent
Manager
Manager
Posts: 2963
Joined: Sat, 22 Dec 2007 11:52 am
Answers: 9
Location: Pacific Rim

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by malcontent » Sat, 29 Apr 2023 1:48 am

Unless you are lucky enough to have a nocturnal remission. Mainly Norwegians, Swiss and Americans, which doesn’t get talked about much — I’m sure they’d prefer that little nugget stays under the rug.
It is impossible for a man to learn what he thinks he already knows - Epictetus

Search By



BigginHill
Chatter
Chatter
Posts: 195
Joined: Mon, 22 May 2017 5:46 pm
Answers: 1

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by BigginHill » Sat, 29 Apr 2023 9:27 am

CNA: More foreigners may rent instead of buy property in Singapore after doubling of additional buyer’s stamp duty

"While the number of transactions by American buyers has picked up in recent years, the number is not large, at 305 in 2022. There were only eight transactions from Norway and 24 from Swiss buyers."

Singapore is mostly a regional magnet of wealth.

User avatar
malcontent
Manager
Manager
Posts: 2963
Joined: Sat, 22 Dec 2007 11:52 am
Answers: 9
Location: Pacific Rim

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by malcontent » Sat, 29 Apr 2023 8:49 pm

I feel that EP holders, as residents and taxpayers, should at least be extended some preference (e.g., 30%) compared to non-resident foreigners who might have no stake here at all.
It is impossible for a man to learn what he thinks he already knows - Epictetus

Lisafuller
Governor
Governor
Posts: 6311
Joined: Sat, 07 Nov 2020 11:45 pm
Answers: 3

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by Lisafuller » Sat, 29 Apr 2023 9:37 pm

BigginHill wrote:
Sat, 29 Apr 2023 9:27 am
CNA: More foreigners may rent instead of buy property in Singapore after doubling of additional buyer’s stamp duty

"While the number of transactions by American buyers has picked up in recent years, the number is not large, at 305 in 2022. There were only eight transactions from Norway and 24 from Swiss buyers."

Singapore is mostly a regional magnet of wealth.
Yes, not super surprising that there aren't a lot of foreign buyers from far away. There are many other alternatives to SG that are closer to Western countries both culturally and geographically. On the other hand, SG is the best SEA has to offer.

Lisafuller
Governor
Governor
Posts: 6311
Joined: Sat, 07 Nov 2020 11:45 pm
Answers: 3

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by Lisafuller » Sat, 29 Apr 2023 9:39 pm

malcontent wrote:
Sat, 29 Apr 2023 8:49 pm
I feel that EP holders, as residents and taxpayers, should at least be extended some preference (e.g., 30%) compared to non-resident foreigners who might have no stake here at all.
Agreed, I was just speaking to some of our neighbors today, they are in the midst of renegotiating their rent as their lease is ending, and the landlord is proposing a 40% increase. I know many people have it worse but 40% is a ton when you think about it. Would be nice if buying a home could be a more feasible option for them.

Lisafuller
Governor
Governor
Posts: 6311
Joined: Sat, 07 Nov 2020 11:45 pm
Answers: 3

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by Lisafuller » Sat, 29 Apr 2023 9:42 pm

BigginHill wrote:
Sat, 29 Apr 2023 12:02 am
Let's be blunt - this step is basically a big FU to the majority of work pass holders, who are essentially told they're not welcome here long term & 100% relegated to renting.

(...say, are we heading for a General Election in 2023?)

I reckon this stamp duty will never be reduced.

Of course, settling down & buying real estate in Singapore without legal long term residency assured was always a very questionable proposition in my opinion, but at least you could avoid renting if you so desired. This is no longer an option.

Mind you, a lot of countries have far more restrictive policies on real estate purchase by non-citizens...
Agree. It would be nice if buying was an option for the word, passholders that are here for years and years on end, it would allow them to at least have some equity in their home for them to sell off when they eventually leave. Most are spending more on rent than they would on a mortgage.

BigginHill
Chatter
Chatter
Posts: 195
Joined: Mon, 22 May 2017 5:46 pm
Answers: 1

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by BigginHill » Sat, 29 Apr 2023 11:35 pm

malcontent wrote:
Sat, 29 Apr 2023 8:49 pm
I feel that EP holders, as residents and taxpayers, should at least be extended some preference (e.g., 30%) compared to non-resident foreigners who might have no stake here at all.
Just another privilege being eroded for work pass holders over the years - these kind of things usually only heads in one direction...

User avatar
malcontent
Manager
Manager
Posts: 2963
Joined: Sat, 22 Dec 2007 11:52 am
Answers: 9
Location: Pacific Rim

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by malcontent » Sun, 30 Apr 2023 12:32 am

Lisafuller wrote:
Sat, 29 Apr 2023 9:39 pm
malcontent wrote:
Sat, 29 Apr 2023 8:49 pm
I feel that EP holders, as residents and taxpayers, should at least be extended some preference (e.g., 30%) compared to non-resident foreigners who might have no stake here at all.
Agreed, I was just speaking to some of our neighbors today, they are in the midst of renegotiating their rent as their lease is ending, and the landlord is proposing a 40% increase. I know many people have it worse but 40% is a ton when you think about it. Would be nice if buying a home could be a more feasible option for them.
My mortgage has increased >40% over the past two years as well. It’s tough all around.
It is impossible for a man to learn what he thinks he already knows - Epictetus

User avatar
malcontent
Manager
Manager
Posts: 2963
Joined: Sat, 22 Dec 2007 11:52 am
Answers: 9
Location: Pacific Rim

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by malcontent » Sun, 30 Apr 2023 12:39 am

Lisafuller wrote:
Sat, 29 Apr 2023 9:42 pm
BigginHill wrote:
Sat, 29 Apr 2023 12:02 am
Let's be blunt - this step is basically a big FU to the majority of work pass holders, who are essentially told they're not welcome here long term & 100% relegated to renting.

(...say, are we heading for a General Election in 2023?)

I reckon this stamp duty will never be reduced.

Of course, settling down & buying real estate in Singapore without legal long term residency assured was always a very questionable proposition in my opinion, but at least you could avoid renting if you so desired. This is no longer an option.

Mind you, a lot of countries have far more restrictive policies on real estate purchase by non-citizens...
Agree. It would be nice if buying was an option for the word, passholders that are here for years and years on end, it would allow them to at least have some equity in their home for them to sell off when they eventually leave. Most are spending more on rent than they would on a mortgage.
That was true during the low interest rate environment, but at the moment the rental rates for our condo are about equal to the mortgage payment and maintenance fees.

The only silver lining is principle portion of the mortgage payment, which was the majority but is now around half of each payment.
It is impossible for a man to learn what he thinks he already knows - Epictetus

Lisafuller
Governor
Governor
Posts: 6311
Joined: Sat, 07 Nov 2020 11:45 pm
Answers: 3

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by Lisafuller » Sun, 30 Apr 2023 5:30 pm

malcontent wrote:
Sun, 30 Apr 2023 12:39 am
Lisafuller wrote:
Sat, 29 Apr 2023 9:42 pm
BigginHill wrote:
Sat, 29 Apr 2023 12:02 am
Let's be blunt - this step is basically a big FU to the majority of work pass holders, who are essentially told they're not welcome here long term & 100% relegated to renting.

(...say, are we heading for a General Election in 2023?)

I reckon this stamp duty will never be reduced.

Of course, settling down & buying real estate in Singapore without legal long term residency assured was always a very questionable proposition in my opinion, but at least you could avoid renting if you so desired. This is no longer an option.

Mind you, a lot of countries have far more restrictive policies on real estate purchase by non-citizens...
Agree. It would be nice if buying was an option for the word, passholders that are here for years and years on end, it would allow them to at least have some equity in their home for them to sell off when they eventually leave. Most are spending more on rent than they would on a mortgage.
That was true during the low interest rate environment, but at the moment the rental rates for our condo are about equal to the mortgage payment and maintenance fees.

The only silver lining is principle portion of the mortgage payment, which was the majority but is now around half of each payment.
Even if the cost of rental is comparable to the mortgage, I would still prefer paying a mortgage as at least, at the end of the day, I own my home.

NYY1
Reporter
Reporter
Posts: 798
Joined: Mon, 21 Mar 2022 10:41 pm
Answers: 4

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by NYY1 » Sun, 30 Apr 2023 8:37 pm

If you are looking at the rent vs. mortgage payment, it is probably best to do this on a newer tenure (new/newish 99 or freehold), fully financed unit (75% or whatever the limit was in the past). Comparing rent to the mortgage payment is going to get distorted as the mortgage is paid down (i.e. original borrowing was years ago) and/or the unit's value has increased (i.e. mortgage is a much lower % of current value).

Out of the box, the newer fully financed property usually requires some add'l out of pocket contribution (vs. the rent coming in or alternatively the rent not paid). A decade later (or so) it may look different.

User avatar
PNGMK
Moderator
Moderator
Posts: 9248
Joined: Thu, 21 Mar 2013 9:06 pm
Answers: 11
Location: Sinkapore

Re: Raising Additional Buyer's Stamp Duty (ABSD) Rates

Post by PNGMK » Mon, 01 May 2023 3:24 pm

malcontent wrote:
Sun, 30 Apr 2023 12:32 am
Lisafuller wrote:
Sat, 29 Apr 2023 9:39 pm
malcontent wrote:
Sat, 29 Apr 2023 8:49 pm
I feel that EP holders, as residents and taxpayers, should at least be extended some preference (e.g., 30%) compared to non-resident foreigners who might have no stake here at all.
Agreed, I was just speaking to some of our neighbors today, they are in the midst of renegotiating their rent as their lease is ending, and the landlord is proposing a 40% increase. I know many people have it worse but 40% is a ton when you think about it. Would be nice if buying a home could be a more feasible option for them.
My mortgage has increased >40% over the past two years as well. It’s tough all around.
I have a fixed rate until April 2024. Fortunately SGD interest rates (SSB, T Bills) are heading downwards. One of my colleagues say he has had 5 interest rate rises.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “Property Talk, Housing & Rental”

Who is online

Users browsing this forum: No registered users and 2 guests