Are you still interested on getting that investment property? The Additional Buyers Stamp Duty (ABSD) can be the biggest hurdle facing property investors. Even if you can afford to pay it, the hefty stamp duty gobbles up a significant chunk of your eventual returns that many investors start to look abroad for opportunities.
Paying ABSD aside from the Buyer’s Stamp Duty (BSD) means that investing in and owning multiple properties in Singapore has become more expensive. Thus, it’s not surprising that most homebuyers want to know how to buy 2nd property in Singapore without ABSD.
For some investors, buying an overseas property is an alternative to avoid paying ABSD. For others who still want to purchase an additional property in Singapore, you may ask, ‘is there any way I can avoid paying ABSD legally?’ Let’s find out below!
When You Upgrade to an Executive Condominium (EC)
When you decide to upgrade from an HDB flat to a private property, or if you buy another private home, you need to pay ABSD in cash or CPF. You can apply for an ABSD remission if you sell your 1st property within six months.
But when you buy a new EC, there’s no need to pay ABSD upfront. You need to have dispose of your home within six months after collecting the keys to your EC, but at least you don’t have to fork out the huge ABSD fee at the start.
Buying Under One Owner’s Name
For those who are buying as a couple of both of you are first-time property owners, then there is nothing wrong with buying under one spouse. This allows the other spouse the freedom and flexibility to purchase another property in the future without incurring ABSD for 2nd property when you both have saved enough.
The only problem of taking this approach is that the spouse would need to carry the weight of the mortgage single-handedly, and must have enough cash and CPF funds for the downpayment and mortgage.
Now that you have an insight into How to buy 2nd property in Singapore without ABSD, why not get started with this expedition? While it may be tempting to purchase an investment property, always remember that buying a property is a significant financial commitment. For this reason, you should carry it with the deserved weight to avoid making mistakes.