Will you buy a 99-year LH landed at $1000 psf?

[buttercarp]

No, just buying a landed with original dwelling, tear it down, rebuild, and sell.

Wow.... then you must be a contractor, or someone who has good connection with contractors? A&A is a big headache if you don't know of reliable contractors, let alone tearing down the whole unit which will incur a high property tax until the unit TOP.

[Secretariat]

The last transacted price for Luxus Hills was 2.8 mil.

So my answer to your question will still be a No.

Btw, this corner terrace (FH) at Platina rd going for 3.1 mil (neg).

http://www.propertyguru.com.sg/listi...street_id=2704

OK, what price level will you buy?...in $xxx psf...serious number(s) please, hahaha.

It is to be located in a mixed landed housing estate, cannot see HDBs or factories one, ok maybe a bit of these at the attic level.

[Secretariat]

Wow.... then you must be a contractor, or someone who has good connection with contractors? A&A is a big headache if you don't know of reliable contractors, let alone tearing down the whole unit which will incur a high property tax until the unit TOP.

Not contractor la, just an individual...also no short cuts, cheap materials for the rebuilding...the competition is developers leh, hahaha.

Until TOP where got property tax?

[buttercarp]

Not contractor la, just an individual...also no short cuts, cheap materials for the rebuilding...the competition is developers leh, hahaha.

Until TOP where got property tax?

This was told to me by a friend who tore down his whole house to rebuild.
The property tax increased exponentially until the house TOP, ie the vacant land incurred a high tax.

http://www.iras.gov.sg/irasHome/page04.aspx?id=2422

[lifeline]

Not contractor la, just an individual...also no short cuts, cheap materials for the rebuilding...the competition is developers leh, hahaha.

Until TOP where got property tax?

2 friends recently sold their 85lh landed for 1.6+ and 1.7+ near international school. i am sure if the buyers want to, they can simply add a staircase externally, etc. priced around there and adjust for 99lh la.

you must be very proficient in rebuilding. how many have you done?

[Secretariat]

This was told to me by a friend who tore down his whole house to rebuild.
The property tax increased exponentially until the house TOP, ie the vacant land incurred a high tax.

http://www.iras.gov.sg/irasHome/page04.aspx?id=2422

Please read the IRAS content carefully.

Anyone has been paying property tax on condo units under construction?

[Secretariat]

2 friends recently sold their 85lh landed for 1.6+ and 1.7+ near international school. i am sure if the buyers want to, they can simply add a staircase externally, etc. priced around there and adjust for 99lh la.

you must be very proficient in rebuilding. how many have you done?

The downside risk of this method is too high, so never considered it.

Anyway, appreciate all the views. Kamsia...

[buttercarp]

Please read the IRAS content carefully.

Anyone has been paying property tax on condo units under construction?

You also go n read properly n email the relevant authority since you may be faced with such a situation.
I am just sharing with u what my friend has experienced.
This is a forum n we share our experience.
It is up to you whether u believe or not.

[amk]

Buttercarp is rite. You continue paying tax on the land you own.

[Secretariat]

You also go n read properly n email the relevant authority since you may be faced with such a situation.
I am just sharing with u what my friend has experienced.
This is a forum n we share our experience.
It is up to you whether u believe or not.

LOL...I did a couple of rebuilding already. Think about it, what is the basis of tax, when there is no house to be occupied. Know the basis of IRAS calculation of Annual Value or not?

And for condo property tax, please read:

http://singaporerealestatearena.com/...struction-buc/

"all property tax levied in respect of the unit after the purchaser receives from the developer the Notice of Vacant Possession." ..AFTER leh...

[Secretariat]

Buttercarp is rite. You continue paying tax on the land you own.

Land, yes, but not the demolished house. Not on the new house being built.

[buttercarp]

Land, yes, but not the demolished house. Not on the new house being built.

Precisely.
The property tax on a vacant land is much more expensive than that of the house.
----------------------------------------------------------------------------------
Property Tax Assessment
Property Tax is a tax on property which includes vacant land and development sites.
How is Property tax calculated?

For vacant land and development sites, property tax is calculated based on a percentage (Tax rate) of the Annual Value (AV) of your land. The AV is assessed at 5% of the estimated freehold land value. The current tax rate is 10%.

http://www.iras.gov.sg/irasHome/page04.aspx?id=2492
Example : AV of land is $1,000,000
Property Tax payable is:$1,000,000 X 10% = $100,000Tax payable in 2011:= $100,000
-------------------------------------------------------------------------------
Buildings

The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
The current tax rate is 10%.

Property tax is computed as follows:
Property tax payable yearly = Annual Value X Tax Rate

Eg if I can rent out my terrace house at $5k per month,
my annual value will be 5000 x 12 = $60 000 per year.

Property Tax payable = $60 000 X 10%
= $6000 yearly
---------------------------------------------------------------------------------

In conclusion :

Property tax per year :
1st case (vacant land) - $100 000
2nd case (completed house) - $6000

So A&A - not considered vacant land
But demolition and tearing the whole house down = vacant land.

[DC33_2008]

Not true as my house took about 1 year to be reconstructed. I wrote in to IRAS with the relevant document to prove that it is ot occupied and under construction to seek for a waive for property tax.

Buttercarp is rite. You continue paying tax on the land you own.

[buttercarp]

Not true as my house took about 1 year to be reconstructed. I wrote in to IRAS with the relevant document to prove that it is ot occupied and under construction to seek for a waive for property tax.

Yup, if you write in and certain conditions are fulfilled then it can be done.
If you don't write in then you will get taxed.
So the purpose of my bringing up of this issue is to alert those who may be in this situation to email the relevant authority on the matter.

[Secretariat]

Precisely.
The property tax on a vacant land is much more expensive than that of the house.
----------------------------------------------------------------------------------
Property Tax Assessment
Property Tax is a tax on property which includes vacant land and development sites.
How is Property tax calculated?

For vacant land and development sites, property tax is calculated based on a percentage (Tax rate) of the Annual Value (AV) of your land. The AV is assessed at 5% of the estimated freehold land value. The current tax rate is 10%.

http://www.iras.gov.sg/irasHome/page04.aspx?id=2492
Example : AV of land is $1,000,000
Property Tax payable is:$1,000,000 X 10% = $100,000Tax payable in 2011:= $100,000
-------------------------------------------------------------------------------
Buildings

The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
The current tax rate is 10%.

Property tax is computed as follows:
Property tax payable yearly = Annual Value X Tax Rate

Eg if I can rent out my terrace house at $5k per month,
my annual value will be 5000 x 12 = $60 000 per year.

Property Tax payable = $60 000 X 10%
= $6000 yearly
---------------------------------------------------------------------------------

In conclusion :

Property tax per year :
1st case (vacant land) - $100 000
2nd case (completed house) - $6000

So A&A - not considered vacant land
But demolition and tearing the whole house down = vacant land.

Sometime I am amazed by how the brains of people really work, hahaha...

If you take the time & effort to dig out all these, highlighting & presenting, then at least understand what you are advising la...

Don't have to calculate, anyone can see that it simply doesn't make sense, hahaha.

But if still want to calculate?

Already stated clearly, from your WOT, that:

The Annual Value of a vacant land is 5% of an estimated FH land value.

For a vacant land with an Annual Value of $1.0 mil, it means that it's probable FH value is $20.0 mil. GCB leh...

A GCB generates this kind of rental?

The intent to alert others is good, but don't advise wrongly la.

[Secretariat]

Not true as my house took about 1 year to be reconstructed. I wrote in to IRAS with the relevant document to prove that it is ot occupied and under construction to seek for a waive for property tax.

I know la, bro...

But another one joined and disputed, so I just LL and "ok lor..."

[Secretariat]

Most people who read the law, they read the Letter of the law but misunderstood the Spirit of the law.

That's why we have lawyers, to help interpret the law.

But lawyers also can be wrong, so we have judges.

But judges also can be wrong, so we have the appeal process.

But the appeal judgement also can be wrong, so we have the Supreme Court.

But the law can also be wrong (more accurately, became irrelevant), so we have the parliamentary process to amend the law.

The intent, spirit, of the law related to taxation of vacant land is to prevent developers from hoarding lands acquired from the state. Because the general property tax law is based on an annual value derived from the rentals of similar property in the area.

A vacant land has no building, so how to assign its annual value. Cannot right? A loophole for developers to hoard a land without paying tax right?

So?

In our situation, once IRAS receives the building plan, the tax on the vacant land is suspended.

You know, nowadays IRAS is very efficient. They will send you an email asking you to forward the building plan they need to verify, to suspend the tax.

[stl67]

LOL...I did a couple of rebuilding already. Think about it, what is the basis of tax, when there is no house to be occupied. Know the basis of IRAS calculation of Annual Value or not?

And for condo property tax, please read:

http://singaporerealestatearena.com/...struction-buc/

"all property tax levied in respect of the unit after the purchaser receives from the developer the Notice of Vacant Possession." ..AFTER leh...

Not sure if there is any diff bet an owner and a licensened developer? Do u have a licensense?

[Secretariat]

Not sure if there is any diff bet an owner and a licensened developer? Do u have a licensense?

No, but why?

[buttercarp]

Sometime I am amazed by how the brains of people really work, hahaha...

If you take the time & effort to dig out all these, highlighting & presenting, then at least understand what you are advising la...

Don't have to calculate, anyone can see that it simply doesn't make sense, hahaha.

But if still want to calculate?

Already stated clearly, from your WOT, that:

The Annual Value of a vacant land is 5% of an estimated FH land value.

For a vacant land with an Annual Value of $1.0 mil, it means that it's probable FH value is $20.0 mil. GCB leh...

A GCB generates this kind of rental?

The intent to alert others is good, but don't advise wrongly la.

That calculation of the land is by the website, not me.
This is a forum, we discuss and share our experience.
One has to get black and white from the authority for accurate advice.
You can't just trust what it is said here.

Ok, I rest my case.
Won't advise you any further seeing that you are very experienced yourself.

Anyway it does not concern me as I don't buy houses and rebuild.
It is out of my scope.

[lifeline]

Sometime I am amazed by how the brains of people really work, hahaha...

If you take the time & effort to dig out all these, highlighting & presenting, then at least understand what you are advising la...

Don't have to calculate, anyone can see that it simply doesn't make sense, hahaha.

dear Secretariat, be more gentle la. sister buttercup is just trying to share the nuggets of info that she has. nuggets being nuggets are just that, hoping that they can trigger more response from more people, so that we can all learn and avoid pitfalls.

cos she offered that info, and you shared further, then we know more about the fair intent of iras in adminstering the property tax. now we all also know that you are a savvy private developer.

thanks for all your sharings and hope you appreciate our feedbacks to your survey too !

[Secretariat]

dear Secretariat, be more gentle la. sister buttercup is just trying to share the nuggets of info that she has. nuggets being nuggets are just that, hoping that they can trigger more response from more people, so that we can all learn and avoid pitfalls.

cos she offered that info, and you shared further, then we know more about the fair intent of iras in adminstering the property tax. now we all also know that you are a savvy private developer.

thanks for all your sharings and hope you appreciate our feedbacks to your survey too !

Bro,

I fully understand where you are coming from, and appreciate all feedbacks.

This is the last time that I will talk about Butterycarp, and being better informed of what she is, I will avoid the dialogue. I am certain that she felt the same about me, as she just expressed.

Tax was not being discussed at all, until she proclaimed that there is this big tax liability for house rebuilding, and it grows exponentially. Someone with an intention to rebuild his old house, can well be alarmed and abandoned his plan.

So, it is garbage and anyone with knowledge is obliged to correct the misinformation for the readers. I gained nothing at all coming into this forum, sharing, and nor do I have a motive in participation.

Sharing is fine, but don't do so without a sureness of what you are saying, in public as in private.

[buttercarp]

dear Secretariat, be more gentle la. sister buttercup is just trying to share the nuggets of info that she has. nuggets being nuggets are just that, hoping that they can trigger more response from more people, so that we can all learn and avoid pitfalls.

cos she offered that info, and you shared further, then we know more about the fair intent of iras in adminstering the property tax. now we all also know that you are a savvy private developer.

thanks for all your sharings and hope you appreciate our feedbacks to your survey too !

Lifeline has made my day again .

@ secretariat.....yes different people think differently.
Eg your user name, instead of thinking it as an admin position, I think of it as a secretary bird .

[DC33_2008]

I have even asked the developer via my lawyer to reimburse for part of the property tax as I have received my keys to the unit some time later after the project TOP. Things can be done if you go by book here.

[roly8]

Burning question i have is what happen after 99 years.. Govt take back the land?

Have seen so many run down leasehold landed ppty with less than 50 year lease, some like 30 years left.. Condition really dated..

I will buy smaller freehold or pay a little more for it. I own the land retain the value and can rebuild.. Neighbours do that too so overall the estate get rejuvenated over time.

so true..

the whole terrace look so cui after 30 yr