Learn About All the Related Duties before Investing In Properties
With the varying prices, property investors try to invest more in the business and residential properties. When the prices are at its low, they can look for the affordable good properties that are available at one’s hand. However, it is good for the market, but when people start investing a lot on the market, the demand increases to a great level. Under these conditions, it becomes imperative for the government to control the money flow by implying all kinds of duties and taxes.
Additional buyer stamp duty ABSD Singapore is also one such measure that allows the government to keep control over market. Singapore government has imposed this measure in order to cool off the increasing demands in the residential property as well as the industrial property. This measure was implemented on 11 January 2013 on all the buyers interested in buying private and public properties. Since the buying power of the citizens is increasing day by day, it has been affecting the demands in the real estate field.
People are trying to invest more in the available properties, which in turn is enhancing the price of the property. Additional buyer stamp duty is a tax that has been capable of easing off this heat in the real estate business. Some of the features of this taxation policy are:
· It is not applicable on all the buyers, but a certain group. Buyers who come under this category are the ones who do not own any property in Singapore at the time of buying the residential property. Buyers who are buying condominium or HDB flats.
· Buyers or Singapore citizenship holders who have 1 residential property in Singapore will be paying 7% of Purchase price or market price in form of ABSD.
· Buyers or Singapore citizenship holders who have 2 or more residential properties will be paying 10% of purchasing price or market price as ABSD which is considered higher.
· Permanent citizen in Singapore who do not own residential property will be paying 5% of the purchase price or market price as ABSD, however the ones who own 1 or more properties will be paying 10% of the purchasing price or market whichever is high.
If you are planning to cut off a cheque to pay the ABSD, stop! It is only payable in cash hence you will have to be ready with the finances before doing any transaction. Talk to your property agent about the other such taxes applicable on buying property.
About the Author
Clark Colin is a Real Estate agent and a blogger. He loves to write about properties available in Singapore, Indonesia etc.
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