Additional Buyer’s Stamp Duty (ABSD) is one of the most influential factors for property investors, and many individuals regularly seek information concerning ABSD. Effective 27 April 2023, the government implemented revised property chilling measures, notably including significant increases in the ABSD rates; most prominently, the ABSD rate for immigrants was raised from 30% to 60%.
This clearly demonstrates that the costs related to investing in and owning multiple properties in Singapore are currently increasing. Consequently, it is no longer necessary to mention that most householders are interested in understandinghow to buy 2nd property in Singapore without ABSD.
As an alternative to paying ABSD, some investors decide to buy property in a foreign nation. How to Buy a 2nd House in Singapore Without Paying ABSD? You may be wondering whether you are among the many people who still want to buy property in Singapore. Let us now consider the following:
When buying as a married couple and both of you are first-time homeowners, it is permissible to buy property in the name of one spouse. When both of you have amassed sufficient funds, this allows the other spouse the freedom and flexibility to buy another property in the future without having to pay Additional Buyer’s Stamp Duty (ABSD) for a 2nd property.
The disadvantage of implementing this approach is that the spouse would assume sole responsibility for the mortgage and must have sufficient cash and CPF funds to cover the down payment and ongoing installments.
You effectively get two units for the price of one when you buy a property with dual-key units. It is advised that you register your 2nd property under ABSD, as it is considered a single unit. The primary unit and the subordinate unit share a common foyer; however, each possesses its own designated living area. Each unit may have a private living space in addition to shared amenities, depending on its configuration.
Because you can lease the sub-unit while maintaining your privacy, dual-key units are highly appealing to both homeowners and investors. However, owing to the inherent exclusivity of dual-key units, they generally command a higher price per square foot and may be up to 25% more expensive.
Now that you know more about how to buy 2nd property in Singapore without ABSD, why not give it a shot? Only then will you be able to take advantage of the financial benefits of acquiring a second property in Singapore.
