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Property investment in Singapore is an attractive option for many, but with the Additional Buyer’s Stamp Duty (ABSD) in place, buyers need to be strategic. This article delves into various ways on how to avoid ABSD when purchasing a second property, and offers insights on how to buy second property in Singapore without absd.
Understanding the Additional Buyer’s Stamp Duty (ABSD)
The ABSD is a tax measure introduced by the Singapore government to moderate the property market and ensure housing affordability. It applies to individuals purchasing additional properties beyond their first.
Methods to Avoiding ABSD Singapore
1. Purchase Under a Child’s Name
One way to avoid ABSD Singapore is by purchasing the property under the name of a child who does not yet own any property. Minors in Singapore can legally own property, making this a feasible option for many families.
2. Decoupling Ownership
Another effective method on how to avoid ABSD is decoupling ownership. If a couple jointly owns a property, they can transfer their share to just one party. This makes the other party eligible to purchase another property without incurring ABSD.
3. Purchase Through a Business Entity
Setting up a business entity or special purpose vehicle (SPV) to purchase property can also be a way to avoid ABSD Singapore. This strategy can be more complex and involves higher costs, but it can be beneficial for those serious about expanding their real estate portfolio.
Legal and Financial Considerations
While employing strategies to circumvent ABSD, it is crucial to be aware of legal and financial implications. Consulting with financial advisors and property experts ensures compliance with regulatory frameworks and optimizes investment outcomes.
Financial Health Check
Before purchasing a second property, conduct a thorough financial health check. Ensure you have sufficient funds for the down payment, monthly mortgage repayments, and other associated costs to maintain financial stability.
Legal Documentation and Compliance
Ensure all legal documentation is prepared and vetted by a property lawyer. Compliance with Singapore’s property laws prevents any future legal complications, making the purchase process smoother and more transparent.
By employing these strategies, potential property buyers can gain an understanding of how to buy second property in Singapore without absd. Proper planning and professional advice are essential to navigate the intricate landscape of Singapore’s property market effectively.
