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14-07-2017, 07:30 AM
(This post was last modified: 14-07-2017, 08:23 PM by cyclone.
Edit Reason: Edited font-size. Please use normal font-size.
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Want to invest in additional property but put off by ABSD?
As a Singaporean, you have to pay 7% ABSD (Additional Buyer's Stamp Duty) for the purchase of your 2nd property and 10% for the 3rd and subsequent property. For PR, it is 10% for 2nd property and subsequent property.
For simple calcuation, let's use a ball park figure of $1 MILLION for a condo in Singapore. If you are a Singapore Citizen, the ABSD amount is $70K for a second property and you have to pay it in cash.
For second property, the minimum upfront cash payment for the downpayment is 25% as regulated by Monentary Authority of Singapore (MAS), which is $250K for a $1 MIL property.
Thus, the amount of cash you need to pay upfront is $320K!
In addition, if you take a bank loan in Singapore, you are subjected to the regulation of TDSR (Total Debt Servicing Ratio) as imposed by MAS.
Under TDSR, your total loans including current monthly home loan payment and other loans such as car loan and personal loans cannot exceed 60% of your gross monthly income.
With the amount of $320K, you can buy many overseas properties in many countries!
Why do I say many overseas properties?
This is because for property, we can leverage on bank loans and buy a property by paying only the downpayment.
For overseas property, you can take a bank loan from banks outside Singapore and you are not subjected to TDSR.
Click to find out more about investing in an overseas property in a developed country!
As a Singaporean, you have to pay 7% ABSD (Additional Buyer's Stamp Duty) for the purchase of your 2nd property and 10% for the 3rd and subsequent property. For PR, it is 10% for 2nd property and subsequent property.
For simple calcuation, let's use a ball park figure of $1 MILLION for a condo in Singapore. If you are a Singapore Citizen, the ABSD amount is $70K for a second property and you have to pay it in cash.
For second property, the minimum upfront cash payment for the downpayment is 25% as regulated by Monentary Authority of Singapore (MAS), which is $250K for a $1 MIL property.
Thus, the amount of cash you need to pay upfront is $320K!
In addition, if you take a bank loan in Singapore, you are subjected to the regulation of TDSR (Total Debt Servicing Ratio) as imposed by MAS.
Under TDSR, your total loans including current monthly home loan payment and other loans such as car loan and personal loans cannot exceed 60% of your gross monthly income.
With the amount of $320K, you can buy many overseas properties in many countries!
Why do I say many overseas properties?
This is because for property, we can leverage on bank loans and buy a property by paying only the downpayment.
For overseas property, you can take a bank loan from banks outside Singapore and you are not subjected to TDSR.
Click to find out more about investing in an overseas property in a developed country!