Additional Buyer’s Stamp Duty (ABSD) is one of the most critical considerations for property investors, and many individuals regularly seek information concerning ABSD. Effective 27 April 2023, the government implemented new property cooling measures that involved significant increases in ABSD rates; most notably, the ABSD rate for foreigners was raised from 30% to 60%.
This clearly indicates that the costs of investing in and owning multiple properties in Singapore are currently increasing. As a result, it is no longer remarkable that the majority of householders seek to determine how to buy 2nd property in Singapore without ABSD.
As an alternative to paying ABSD, some investors opt to buy a property in a foreign country. “How to Buy 2nd Property in Singapore Without 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 accumulated sufficient funds, this gives the other spouse the freedom and flexibility to buy another property in the future without incurring Additional Buyer’s Stamp Duty (ABSD) on 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. Depending on the unit’s configuration, each may include a private living space in addition to shared amenities.
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 exclusivity intrinsic to dual-key units, they generally command a higher price per square foot and may be up to 25% more expensive.
How to buy 2nd property in Singapore without ABSD: Why not give it a shot now that you’ve learned more? Only then will you be able to take advantage of the financial benefits of acquiring a second property in Singapore.