Additional Buyer's Stamp Duty

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x9200
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Additional Buyer's Stamp Duty

Post by x9200 » Thu, 08 Dec 2011 8:15 am

I saw Kim mentioning this yesterday but did not see anybody posting the details. After: http://www.mas.gov.sg/news_room/press_r ... arket.html

(2011-12-07)
The Government announced today an Additional Buyer’s Stamp Duty (ABSD) to be imposed on certain categories of residential property purchases. The ABSD will be imposed over and above the current Buyer’s Stamp Duty, and will apply to the purchase price or market value of the property (whichever is higher) for the following purchases:

a) Foreigners and non-individuals1 (corporate entities) buying any residential property will pay an ABSD of 10%;

b) Permanent Residents (PRs) owning one2 and buying the second and subsequent residential property will pay an ABSD of 3%; and

c) Singapore Citizens (Singaporeans) owning two2 and buying the third and subsequent residential property will pay an ABSD of 3%.

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sundaymorningstaple
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Post by sundaymorningstaple » Thu, 08 Dec 2011 9:40 am

ABSD : ABSURD!

Another new Abbreviation and what it really stands for! :o

I just hope the rest of the world starts doing the same thing for Singaporeans who purchase properties overseas for investment purposes as well. Seems only fitting....... :-|
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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JR8
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Post by JR8 » Thu, 08 Dec 2011 3:41 pm

One upshot of having such high entry charges to the market is that once people have bought they are very resistant to selling and 'realising' their costs. This makes the market less dynamic.

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Post by revhappy » Thu, 08 Dec 2011 10:04 pm

I can see another reason for PR abuse. Earlier it was for HDBs now it will be condos also. Imagine, the cheapest decent 2 bedder costs 800K and 10% of that is 80K. People abuse PR for the flimsiest benefit. This one is just too big to resist. :roll:

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Post by BillyB » Fri, 09 Dec 2011 12:16 pm

I see the ruling as very, very clever, both economically and politically.

It curtails foreigners and outside investors who are intending to buy properties prior to getting PR, meaning the rental market and prices remain buoyant and consistent to support the market. It's likely intended to curb the current pace of new developments and avoid the risk of flooding the market with excess properties, especially so during a technical recession, which will drive down prices. The present economic climate is volatile and Singapore cannot risk instability in the real estate market - it attracts investors and is generally viewed as stable. It's a measure used to prevent price swings in the future.

Additionally, it flatters the Government at the same time by sending out a message to the people that they are trying to curb the number of foreigners here.

The downside is that it will make it very difficult for locals to buy property as the prices will continue to rise, and the Singapore property market continues in it's bubblesque advancement.

In the bigger scheme of things it's actually a very wise move in order to prevent wild speculation and mass capital inflows given how the financial markets are swinging. The more capital that flows into a country, the more likely inflation is - Singapore doesn't need inflation at the moment. You may not see it as beneficial to individuals, but to prevent Singapore from getting hammered in the coming downturn, it's a smart policy.

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Post by carteki » Fri, 09 Dec 2011 12:43 pm

revhappy wrote:I can see another reason for PR abuse. Earlier it was for HDBs now it will be condos also. Imagine, the cheapest decent 2 bedder costs 800K and 10% of that is 80K. People abuse PR for the flimsiest benefit. This one is just too big to resist. :roll:
+1

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Post by Mad Scientist » Fri, 09 Dec 2011 1:10 pm

You guys missed the point. All these measure are containment in nature. There is no solution. The biggest problem is LAND i.e Leeky Agenda Never Dies .. :cool: :cool:
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

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