MND and IRAS have just announced an Additional Buyer’s Stamp Duty (ABSD) for all private properties – including condominiums, private apartments and landed property – bought from 8 Dec 2011.
This ABSD is levied “over and above” the existing Buyer’s Stamp Duty.
For foreigners and corporate entities, the ABSD is 10% of the property price or market value, whichever is higher.
For example, if a non-PR Chinese national from mainland China buys a condo for $1 million, he will have to pay $100k for ABSD and $24.6k for the existing Buyer’s Stamp Duty. This means IRAS will collect a total of $124.6k in taxes from him.
Citizens and PRs are somewhat luckier.
PRs buying their 2nd and subsequent private property will pay a lower 3% ABSD.
Citizens will also pay a 3% ABSD, but only for their 3rd and subsequent property.
If you are buying a private property, use our ABSD calculator below to get an idea of how much stamp duty you have to pay. Just enter the property purchase price or market valuation (whichever is higher).
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Crash is welcomed. Please come asap.
once the drop of 30% comes, it’s time for the vultures to strike. many new millionaires will be made.
Dont forget there’s also Seller’s Stamp Duty (SSD) of 16%, 12%, 8%, 4% for holding periods of 4,3,2,1 years respectively. Those affected by SSD will need to decide whether to sell now or later. Inaction on their part may not be a good idea.
When faced with declining mortgage loans, banks will start to raise interest rates to cover the loss of income.
I got a Stanchart loan in 2002. The bank raised the rate to almost 8% over the span of a few months, but in its letters to me, it just informed me of the revised installation amount and never explicitly stated the rate. BE CAREFUL!
I remember reading somewhere that the bank has the right to increase the spread for loans pegged to SIBOR and SOR. Is this true?
For example, if I have a loan with an interest rate = SIBOR + 1%, can the bank increase the spread of 1% to 2% at its discretion?