Property Market Sentiments

Can anyone tell me if a property which has been bought in April 2010 and to be sold now, what are all the fees incurred? Or where or which website to check?
People say if you sold your rental property anytime even with profit, you must have a place for investing your relised capital; If not do not sell, True?

Temperament,

Hope this is of some help to you:

http://www.iras.gov.sg/irashome/page.asp...96#Buyer's Stamp Duty and Additional Buyer's Stamp Duty (ABSD) for Residential Properties

Seller's Stamp Duty (SSD) for Residential Properties

Date of purchase / acquisition or Date of change of zoning / use

Holding period

Rates

Between 20 February 2010 and 29 August 2010 (all inclusive) Within 1 year Every $100 or part thereof of the first $180,000
$1.00

Every $100 or part thereof of the next $180,000 $2.00
Thereafter, every $100 or part thereof $3.00
More than 1 year No SSD payable
Between 30 August 2010 and 13 January 2011 (all inclusive) Within 1 year Every $100 or part thereof of the first $180,000
$1.00

Every $100 or part thereof of the next $180,000 $2.00
Thereafter, every $100 or part thereof $3.00
More than 1 year and up to 2 years Every $100 or part thereof of the first $180,000
$0.67

Every $100 or part thereof of the next $180,000 $1.33
Thereafter, every $100 or part thereof $2.00
More than 2 years and up to 3 years Every $100 or part thereof of the first $180,000
$0.33

Every $100 or part thereof of the next $180,000 $0.67
Thereafter, every $100 or part thereof $1.00
More than 3 years No SSD payable
On and after 14 January 2011+ Within 1 year 16% of consideration or value, whichever is higher
More than 1 year and up to 2 years 12% of consideration or value, whichever is higher
More than 2 years and up to 3 years 8% of consideration or value, whichever is higher
More than 3 years and up to 4 years 4% of consideration or value, whichever is higher
More than 4 years No SSD payable

(29-09-2013, 02:50 PM)Temperament Wrote: Can anyone tell me if a property which has been bought in April 2010 and to be sold now, what are all the fees incurred? Or where or which website to check?
People say if you sold your rental property anytime even with profit, you must have a place for investing your relised capital; If not do not sell, True?

Talking about stamp duty, anyone can advice or tell me more about the "consideration or value, whichever higher"?

The scenario is, if a property is valued at $1,000,000 and is sold at $800,000, then how do IRAS calculate the stamp duty? One agent told me that they will use $800,000. Can I trust him?

---

(29-09-2013, 02:50 PM)Temperament Wrote: Can anyone tell me if a property which has been bought in April 2010 and to be sold now, what are all the fees incurred? Or where or which website to check?
People say if you sold your rental property anytime even with profit, you must have a place for investing your relised capital; If not do not sell, True?

Hi Uncle Temperament,

Whether have a place to invest or not, it not critical. Just like shares. Sell already must have another one to invest? Sometime we do hold cash and wait for better opportunity. So same for property, we can always hold and wait for better opportunity.

Of coz, everyone operate differently, so can't speak for everyone.

(29-09-2013, 04:43 PM)NTL Wrote: Talking about stamp duty, anyone can advice or tell me more about the "consideration or value, whichever higher"?

The scenario is, if a property is valued at $1,000,000 and is sold at $800,000, then how do IRAS calculate the stamp duty? One agent told me that they will use $800,000. Can I trust him?

NTL, you are very lucky to find such a gem!

By right, you should use $1m for stamp duty calculation.

By left, anything is possible...

Singapore home prices could fall 20% by 2015: Barclays By Ansuya Harjani

Residential property prices in the wealthy island nation of Singapore could be headed for a sizable correction of up to 20 percent by 2015, according to Barclays.

"We believe the risk of a residential property market correction in the next two years is rising, as expected higher interest rates look set to coincide with a large increase in housing supply over 2014-15," Tricia Song, analyst at Barclays wrote in a report on Friday.

The bank forecasts prices will remain flat in 2013, before falling 5 percent in 2014 and another 5-15 percent in 2015.

Southeast Asia's financial center is home to one of the most expensive real estate markets in the world. Prices have soared over 60 percent since mid-2009, spurred by low interest rates.

The outlook is based on expectations that short-term interest rates will begin their ascent in the second quarter of 2015, and rise 200 basis points over a period of six months. The pace of property price declines will be tied to the pace of interest rate rises, Song explained.

Singapore mortgage rates are typically pegged to the short-term three-month Singapore Interbank Offered Rate (SIBOR) rate, which tracks the direction of the U.S. federal funds rate.

Adding to higher mortgage rates, a bumper supply of private and public housing is due to complete starting in 2014.

Almost 95,000 private units are expected to come on stream over the next five years, alongside 25,000-27,000 public housing flats per annum, according to the Urban Redevelopment Authority.

"Total housing supply could average 40,000 units per annum and peak at 47,000 in 2015 - significantly above the historical average annual supply of 12,300 units," Song said.

"Assuming occupier demand of 15,500 units of private housing per annum, we expect the private vacancy rate to rise from 5.6 percent currently to 9.9 percent in 2016," she added, noting that historically when vacancy rates hit 8 percent, rents and prices start declining.

Home sales have begun softening as the government's cooling measures start to bite, with the latest monthly data showing developers sold 742 units in August, compared with an average of 1,000-1,500 units in the recent years, according to Barclays.

This year, the bank expects primary home sales to total 15,500 units, 30 percent below last year's 22,179 units.

The government has introduced nine rounds of market-cooling measures since 2009, most recently targeted at the public housing market, which house 80 percent of the country's citizens. The measures announced in August included shortening the maximum loan tenure to 25 years from 30 years, and reducing the mortgage ratio limit against the borrower's salary to 30 percent from 35 percent previously.

http://sg.finance.yahoo.com/news/singap ... 53319.html

NTL,
This is a unique case. Why would anyone wants to sell his property 20% off the market value at this moment? Would it be a case of under declaration in the eyes of IRAS? Or could it be the seller knows something which the buyer does not know yet?

(29-09-2013, 04:43 PM)NTL Wrote: Talking about stamp duty, anyone can advice or tell me more about the "consideration or value, whichever higher"?

The scenario is, if a property is valued at $1,000,000 and is sold at $800,000, then how do IRAS calculate the stamp duty? One agent told me that they will use $800,000. Can I trust him?

---

(29-09-2013, 02:50 PM)Temperament Wrote: Can anyone tell me if a property which has been bought in April 2010 and to be sold now, what are all the fees incurred? Or where or which website to check?
People say if you sold your rental property anytime even with profit, you must have a place for investing your relised capital; If not do not sell, True?

Hi Uncle Temperament,

Whether have a place to invest or not, it not critical. Just like shares. Sell already must have another one to invest? Sometime we do hold cash and wait for better opportunity. So same for property, we can always hold and wait for better opportunity.

Of coz, everyone operate differently, so can't speak for everyone.

(29-09-2013, 04:55 PM)chialc Wrote:

(29-09-2013, 04:43 PM)NTL Wrote: Talking about stamp duty, anyone can advice or tell me more about the "consideration or value, whichever higher"?

The scenario is, if a property is valued at $1,000,000 and is sold at $800,000, then how do IRAS calculate the stamp duty? One agent told me that they will use $800,000. Can I trust him?

NTL, you are very lucky to find such a gem!

By right, you should use $1m for stamp duty calculation.

By left, anything is possible...

The calculation is by IRAS, right? So it will be up to IRAS to determine which number to use?

Sad to say, I did not find such a an unit. A year or 2ago, was looking at an unit, valued at $760,000, and seller willing to close at $680,000. So put the question to the agent regarding how the stamp duty was calculated. It was finally sold at $678,000 to someone else. My offer was lower as massive renovation was required.

---

(29-09-2013, 05:08 PM)etan Wrote: NTL,
This is a unique case. Why would anyone wants to sell his property 20% off the market value at this moment? Would it be a case of under declaration in the eyes of IRAS? Or could it be the seller knows something which the buyer does not know yet?

I see it as overstating of value. Sometime I don't understand how an unit can be valued so high by the banks...

I had ever checked with a bank regarding the valuation of a particular unit. The valuation given can range from $800,000-$1,000,000.

(29-09-2013, 05:21 PM)NTL Wrote:

(29-09-2013, 04:55 PM)chialc Wrote:

(29-09-2013, 04:43 PM)NTL Wrote: Talking about stamp duty, anyone can advice or tell me more about the "consideration or value, whichever higher"?

The scenario is, if a property is valued at $1,000,000 and is sold at $800,000, then how do IRAS calculate the stamp duty? One agent told me that they will use $800,000. Can I trust him?

NTL, you are very lucky to find such a gem!

By right, you should use $1m for stamp duty calculation.

By left, anything is possible...

The calculation is by IRAS, right? So it will be up to IRAS to determine which number to use?

Sad to say, I did not find such a an unit. A year or 2ago, was looking at an unit, valued at $760,000, and seller willing to close at $680,000. So put the question to the agent regarding how the stamp duty was calculated. It was finally sold at $678,000 to someone else. My offer was lower as massive renovation was required.

---

(29-09-2013, 05:08 PM)etan Wrote: NTL,
This is a unique case. Why would anyone wants to sell his property 20% off the market value at this moment? Would it be a case of under declaration in the eyes of IRAS? Or could it be the seller knows something which the buyer does not know yet?

I see it as overstating of value. Sometime I don't understand how an unit can be valued so high by the banks...

I had ever checked with a bank regarding the valuation of a particular unit. The valuation given can range from $800,000-$1,000,000.

I'm not sure if it is possible, but could it be becoz seller unable to get loan to pay the amount for TOP? Seems quite concidental that it happens right after tree house TOPed.

NTL,
Both the consideration and value will be declare by you (your lawyer) to IRAS.
These are input to the IRAS stamp duty calculator/formula.

:-)

(29-09-2013, 05:21 PM)NTL Wrote: The calculation is by IRAS, right? So it will be up to IRAS to determine which number to use?

---

T,
Can anyone tell me if a property which has been bought in April 2010 and to be sold now, what are all the fees incurred?
>> There is no SSD. So, your fees will be legal, property tax, maintenance charge, bank mortgage redemption fees, agent commission.
>> NB: your cpf with interest will be return back too.

People say if you sold your rental property anytime even with profit, you must have a place for investing your relised capital; If not do not sell, True?
>> What people say is not important. What you think will be more interesting. Assuming that you're good in stock/share investments, then your experience in stock market will be a good guide...

[Image: investment.jpg]
picture courtesy of google/zurich.com

(29-09-2013, 04:34 PM)etan Wrote: Temperament,

Hope this is of some help to you:

http://www.iras.gov.sg/irashome/page.asp...96#Buyer's Stamp Duty and Additional Buyer's Stamp Duty (ABSD) for Residential Properties

Seller's Stamp Duty (SSD) for Residential Properties

Date of purchase / acquisition or Date of change of zoning / use

Holding period

Rates

Between 20 February 2010 and 29 August 2010 (all inclusive) Within 1 year Every $100 or part thereof of the first $180,000
$1.00

Every $100 or part thereof of the next $180,000 $2.00
Thereafter, every $100 or part thereof $3.00
More than 1 year No SSD payable
Between 30 August 2010 and 13 January 2011 (all inclusive) Within 1 year Every $100 or part thereof of the first $180,000
$1.00

Every $100 or part thereof of the next $180,000 $2.00
Thereafter, every $100 or part thereof $3.00
More than 1 year and up to 2 years Every $100 or part thereof of the first $180,000
$0.67

Every $100 or part thereof of the next $180,000 $1.33
Thereafter, every $100 or part thereof $2.00
More than 2 years and up to 3 years Every $100 or part thereof of the first $180,000
$0.33

Every $100 or part thereof of the next $180,000 $0.67
Thereafter, every $100 or part thereof $1.00
More than 3 years No SSD payable
On and after 14 January 2011+ Within 1 year 16% of consideration or value, whichever is higher
More than 1 year and up to 2 years 12% of consideration or value, whichever is higher
More than 2 years and up to 3 years 8% of consideration or value, whichever is higher
More than 3 years and up to 4 years 4% of consideration or value, whichever is higher
More than 4 years No SSD payable

(29-09-2013, 02:50 PM)Temperament Wrote: Can anyone tell me if a property which has been bought in April 2010 and to be sold now, what are all the fees incurred? Or where or which website to check?
People say if you sold your rental property anytime even with profit, you must have a place for investing your relised capital; If not do not sell, True?

Thank you very much.
Cheers!

---

(29-09-2013, 06:58 PM)chialc Wrote: NTL,
Both the consideration and value will be declare by you (your lawyer) to IRAS.
These are input to the IRAS stamp duty calculator/formula.

:-)

(29-09-2013, 05:21 PM)NTL Wrote: The calculation is by IRAS, right? So it will be up to IRAS to determine which number to use?

---

T,
Can anyone tell me if a property which has been bought in April 2010 and to be sold now, what are all the fees incurred?
>> There is no SSD. So, your fees will be legal, property tax, maintenance charge, bank mortgage redemption fees, agent commission.
>> NB: your cpf with interest will be return back too.

People say if you sold your rental property anytime even with profit, you must have a place for investing your relised capital; If not do not sell, True?
>> What people say is not important. What you think will be more interesting. Assuming that you're good in stock/share investments, then your experience in stock market will be a good guide...

[Image: investment.jpg]
picture courtesy of google/zurich.com

Thank you very much.

If i sell my property now then my asset allocation is very, very lop-sided.
Besides no matter what happens, Bricks & Motar has some residue value, unlike Stock which may go to zero value.

Actually i started with stocks and dare not go into property for 25 to 30 (to be a Landlord) because i am very straight-forward, short-fuse person and do not like to handle tenant (i think more likely i knew i couldn't handle tenant/landlord relationship problems) when i was much younger.

Now i am so much older, i may be able to take the nonsense of a tenant. i think i can now if i am prepare not to be so 4Ks. Besides i have plenty of time on my hand.

It's also for my only son's future. He is 24+ and prepared to join his close friend as a full -time property Sale Person very soon.

Furthermore my wife & me may one day "retire" there.
My wife likes Shoe Box because of very easy housekeeping.
Not me.

Any advice for my son as a Newbie Property Sale Person from experienced Property Sale agents
Thanks.