Additional Buyer’s Stamp Duty (ABSD) is among the most critical considerations for property investors, and many seek information about it. Effective 27 April 2023, the government announced new property cooling measures, including significant increases in the ABSD rates; most notably, the ABSD rate for immigrants was raised from 30% to 60%.
This explicitly indicates that the costs of investing in and owning multiple properties in Singapore are currently higher. Consequently, it is no longer noteworthy that most householders are trying to determine how to buy a 2nd property in Singapore without ABSD.
As an alternative strategy to avoid paying ABSD, some investors opt to buy a property abroad. How to buy 2nd property in Singapore without ABSD may be on your mind if you are among the numerous individuals still seeking to buy a property in Singapore. Let us now consider the following:
When buying as a married couple and both of you are first-time property owners, 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 liberty and flexibility to buy another property in the future without incurring ABSD on a 2nd property.
The disadvantage of implementing this strategy is that the spouse would be solely responsible for the mortgage and must have sufficient cash and CPF funds to cover the down payment and ongoing payments.
In other words, you get two units for the price of one when you buy a property with dual-key units. You are advised against applying for ABSD because your 2nd property 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 unit may include its own living space and 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 associated with dual-key units, they generally command a higher price per square foot and may be up to 25% more expensive.
Now that you have a better understanding of how to buy a 2nd property in Singapore without ABSD, why not give it a try? Only then will you be able to take advantage of the financial benefits of acquiring a second property in Singapore.