Sunday, 1 September 2013

Buyer's Guide for Singapore Properties

TAXES & REGULATIONS

Before making your next residential property investment, here are the important things you should take note of.

Property Tax

Property tax is a tax on the ownership of property. It is not an income tax which taxes the rental income received by a property owner. Property tax is payable by all property owners on the properties owned by them, regardless of whether the properties are let out, owner-occupied or left vacant by them. Hence, as long as you own a property, you are required to pay property tax.

More about property tax

Buyer's Stamp Duty

Buyer are required to pay stamp duty for documents executed for a sale and purchase of property. Stamp duty will be computed on the purchase price or market value of the property (whichever is the higher amount).

Additional Buyer's Stamp Duty

On 7 December 2011, the Government announced the introduction of the Additional Buyer’s Stamp Duty (ABSD) to be paid by certain groups of people who buy or acquire residential properties (including residential land) on or after 8 Dec 2011. Subsequently on 12 Jan 2013, the ABSD rate was revised to a higher rate.

More on Cooling Measure 12 Jan 1013.

Seller's Stamp Duty

In February 2010, the Government imposed a seller’s stamp duty (SSD) on sellers who buy (or acquire) residential properties on or after 20 February 2010 and sell (or disposed of) them within one year of acquisition. On 14 Jan 2011, the SSD rate was revised to a higher rate.

More on Cooling Measure 14 Jan 2011

SCHEDULE OF PAYMENTS

Under the standard Sale & Purchase Agreement, purchasers are required to make installment payments of the purchase price, typically referred to as progress payments, as and when the developer completes the different stages of construction of the housing project. All installment payments up to the issue of Temporary Occupation Permit are to be paid into the Project Account which the developer is required to maintain with a bank or financial institution.


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