Additional Buyer’s Stamp Duty (ABSD) is unquestionably one of the most significant factors affecting property investors, and many people regularly ask about it. Effective 27 April 2023, the government enacted revised property cooling measures, primarily comprising substantial increases in ABSD rates; most notably, the ABSD rate for foreign buyers was raised from 30% to 60%.
This clearly demonstrates the rising costs of investing in and owning multiple properties in Singapore. Therefore, it is no longer noteworthy to note that the majority of homeowners are interested in learning how to buy a 2nd property in Singapore without ABSD.
Some investors prefer to buy property in a foreign country as an alternative to paying ABSD. How to Purchase a 2nd Home in Singapore Without Incurring ABSD? You might be contemplating whether you are one of the many people who still want to buy a property in Singapore. Let us now examine the following:
It is permissible to buy property in the name of one spouse when purchasing as a married couple, and both of you are first-time homeowners. When both of you have accumulated adequate funds, this gives the other spouse the liberty and flexibility to buy another property in the future without having to pay Additional Buyer’s Stamp Duty (ABSD) for a 2nd property.
The drawback of adopting this approach is that the spouse would bear solitary responsibility for the mortgage and must possess adequate cash and CPF funds to cover the down payment and recurring installments.
When you buy a property with dual-key units, you get two units for the price of one. Your 2nd property is regarded as a single unit, so it is recommended that you register for ABSD. The primary unit and the subordinate unit share a common foyer; however, each has its own designated living space. Depending on its configuration, each unit may also include a private living area in addition to communal amenities.
Because you can lease the sub-unit while preserving your privacy, dual-key units are beautiful to both homeowners and investors. However, due to the inherent exclusivity of dual-key units, they typically command a higher price per square foot, up to 25% more than other units.
Why not attempt it now that you have learned more about how to buy 2nd property in Singapore without ABSD? Only then will you be able to access the financial benefits associated with acquiring a second property in Singapore.
