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Thread: Waiver of Seller Stamp Duty

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    Default Waiver of Seller Stamp Duty

    Hi experts, would like some advice with regards to the Waiver of Seller Stamp Duty (if it is even possible!).

    Due to the sudden financial constraints, I will not be able to maintain the condo which I bought Jul-16. But if I sell now, I will incur a Seller Stamp Duty of 12%!.

    1. Is there any ways to get a waiver on the Seller Stamp Duty?
    2. Is there any other additional cost which I will need to take note of other than SSD?

    Thanks in advance!

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    Hi Leafe,

    Sorry to hear about your situation.

    Let me give my 2-cents worth.

    IRAS has a clear set of rule regarding the exemption from SSD, which I have listed below for easy reference. Knowing how Singapore functions, it will be difficult to seek waiver if you go direct to the relevant government authority for waiver. Probably the best bet is to look for your MPs, let them know your financial difficulties and seek their assistance on this issue. But because you own a private property (which is generally considered affluent), it is not sure how much MPs can help. HDB owners might have a better chance if they are in similar situation like you. But nonetheless, this is probably the best chance that you will have.

    Other fees to consider will be your agent fee and legal fees. Do read through your loan documents and find out the possible charges for redemptions and make sure the redemption is accordance to T&C in order not to incur unneccesary charges. You can call the bank and seek their advise.

    Hope this helps.


    Exemptions from SSD for Residential Properties under the Stamp Duties Act
    SSD for residential properties is exempted for sellers / transferors under the following scenarios:

    1) Licensed housing developers who are governed under the Housing Developers (Control and Licensing) Act need not pay SSD when selling residential properties developed by them.
    2) Public authorities in exercising their functions and duties need not pay SSD when selling residential properties, e.g. Housing & Development Board (HDB), Jurong Town Corporation (JTC).
    3) Residential property owners need not pay SSD when their properties are acquired by the Government under the Land Acquisitions Act.
    4) Residential property owners need not pay SSD when selling their residential properties due to bankruptcy or involuntary winding up.
    5) Foreigners need not pay SSD when they have to sell their residential properties as required under the Residential Properties Act.
    6) For HDB flat sellers or transferors who bought or acquired their flats on or after 30 Aug 2010 and their flats have been identified for Selective Enbloc Redevelopment Scheme (SERS) but sell their flats in the open market before HDB claims them.
    7) HDB flat sellers or transferors who return their flats to HDB as a result of re-possession by HDB or under the SERS.

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    1. Is it new or resale? How many % paid up? Bank might be able to help depending on the precise financial constraints indicated. Check out refinancing options. Explore CPF OA options to tide over if it is this period only.

    2. SSD waiver is very unlikely. Most likely have to aim to sell at 12% profits or more to cover.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by leafe View Post
    Hi experts, would like some advice with regards to the Waiver of Seller Stamp Duty (if it is even possible!).

    Due to the sudden financial constraints, I will not be able to maintain the condo which I bought Jul-16. But if I sell now, I will incur a Seller Stamp Duty of 12%!.

    1. Is there any ways to get a waiver on the Seller Stamp Duty?
    2. Is there any other additional cost which I will need to take note of other than SSD?

    Thanks in advance!
    Sorry to hear about this. Which location is your condo?

    Perhaps, you can Try and find some relative to take over payment during this time for a share of the condo (either in future sale, or if renting out, a cut of the rental income). You can always get a solicitor to write up a separate contract. Selling should be the last option due to SSD.

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    Thanks all for the quick reply! Sad to say, I did tried to rent out since 3 months ago (it was vacant since Aug-17 as I have moved back to my parent's house), but not able to (perhaps due to the location - Woodlands). Selling is my last option, as for the past few months, only out (spending) no in (income). It was a resale condo, completed in 2014. I guess will need to go see MP with all the supporting documents on my financial status now?

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    Quote Originally Posted by leafe View Post
    Thanks all for the quick reply! Sad to say, I did tried to rent out since 3 months ago (it was vacant since Aug-17 as I have moved back to my parent's house), but not able to (perhaps due to the location - Woodlands). Selling is my last option, as for the past few months, only out (spending) no in (income). It was a resale condo, completed in 2014. I guess will need to go see MP with all the supporting documents on my financial status now?
    Cut your losses and rent out at below market rate and you should be able to find a tenant pretty quick. At least you can have some cash inflow while you manage your mortgage partly with CPF. Finding a good property agent to help rent out will be very helpful.

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    Quote Originally Posted by leafe View Post
    Thanks all for the quick reply! Sad to say, I did tried to rent out since 3 months ago (it was vacant since Aug-17 as I have moved back to my parent's house), but not able to (perhaps due to the location - Woodlands). Selling is my last option, as for the past few months, only out (spending) no in (income). It was a resale condo, completed in 2014. I guess will need to go see MP with all the supporting documents on my financial status now?
    Oh yes, I remember discussing about that development sometime back.

    Consider it this way - if you can hold for half a year more, you can save 4% SSD, which translates into something like $20,000 for your case. Holding for half a year shouldn't make you fork out more than $20,000 as well.

    North has its risks due to the very much cheaper options even further North (JB) and the industrial estate and professions available. You might have to rent even lower to transact. If you need, I can recommend my friend agent who has helped me rent out at market value. But the ones we worked to rent were mainly South and Northeast areas.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    The main cost for holding are actually interests and maintenance.

    Assuming 2% interest and 30 Year loan, the half Year holding cost is about 6,000 and 1,000.

    The additional that you pay goes into paying down the mortgage which ends up as part of your equity. Definitely better than paying SSD straightaway.

    Moreover, property is at an inflexion point now. A little bit more patience will ensure a much more favourable selling environment very soon. Wait for the enbloc group coming out to find properties in a few months time.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Rental is always possible. It is not the location. It is the price that matters. Don't tell me rent out $10, no one wants. I know it sounds stupid but you get my point.

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    Quote Originally Posted by thomastansb View Post
    Rental is always possible. It is not the location. It is the price that matters. Don't tell me rent out $10, no one wants. I know it sounds stupid but you get my point.
    Rental is always possible, but in this case, if rent out below say $1000 per month, there is actual loss if the property price stays stagnant or at worst drops. I have a friend looking to sell a cluster landed within that development if I am not mistaken, I presume also based on those reasons.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    In his case, the property stays vacant for 3 months. Let's say avg rental is 3k.

    2k x 3 = 6k liao. And who knows how many months this will carry on if he insist on 3k? Usually $500 below market rate will seal the deal in my experience. It is only the price that matters in the end. Not the location.


    Quote Originally Posted by Kelonguni View Post
    Rental is always possible, but in this case, if rent out below say $1000 per month, there is actual loss if the property price stays stagnant or at worst drops. I have a friend looking to sell a cluster landed within that development if I am not mistaken, I presume also based on those reasons.

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    It was a Mickey Mouse type of unit if I recall correctly, bought at one of the recent absolute lows.

    Mortgage plus maintenance is unlikely to exceed $1,700.

    Quote Originally Posted by thomastansb View Post
    In his case, the property stays vacant for 3 months. Let's say avg rental is 3k.

    2k x 3 = 6k liao. And who knows how many months this will carry on if he insist on 3k? Usually $500 below market rate will seal the deal in my experience. It is only the price that matters in the end. Not the location.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Didn’t he bgt it at 507k..?
    Rental still 1.6k lei.
    Last edited by jwong71; 16-12-17 at 13:46.

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    507k the rental should be able to cover ba. It could be the agent a bit lazy. rental 1500 give or take for MM .

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    Location is still crucial I feel.

    If the area has many whole HDBs (relatively new ones) ready for rent, it will still be a challenge. The North and extreme Northeast private will face this rental challenge as most work opportunities are still South. Those who can afford may choose to buy instead of rent in the vicinity.

    Working with a good agent is crucial to survive the defensive phase.

    Quote Originally Posted by thomastansb View Post
    In his case, the property stays vacant for 3 months. Let's say avg rental is 3k.

    2k x 3 = 6k liao. And who knows how many months this will carry on if he insist on 3k? Usually $500 below market rate will seal the deal in my experience. It is only the price that matters in the end. Not the location.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Location is not crucial. Price is the determinator. So what if your unit at orchard? If you asking 10k for studio, you think can rent out? So location don't play a part here. Location is only good if you use it as a secondary factor after price. Like orchard 5k, newton also 5k, then orchard has a higher chance. Doesn't mean orchard will close faster but higher chance.

    Woodlands likewise, don't tell me 1k for studio, cannot close in a week. I don't believe. Then there will be arguments saying 1k not enough to pay for mortgage. Then continue with $0 then. $0 can pay for everything.

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    Don't talk stupid nonsense lah!

    Otherwise how do you explain a 3BR condo unit in Orchard can rent out for $6-8k p.m. while a similar size 3BR unit in Punggol can only rent out for $3k+ p.m.?
    Based on your logic, if Orchard can rent out at $6-8k p.m., shouldn't Punggol's similar size unit be able to rent out at about $6-8k p.m. too? Why now only less than half of $8k p.m.?

    Quote Originally Posted by thomastansb View Post
    Location is not crucial. Price is the determinator. So what if your unit at orchard? If you asking 10k for studio, you think can rent out? So location don't play a part here. Location is only good if you use it as a secondary factor after price. Like orchard 5k, newton also 5k, then orchard has a higher chance. Doesn't mean orchard will close faster but higher chance.

    Woodlands likewise, don't tell me 1k for studio, cannot close in a week. I don't believe. Then there will be arguments saying 1k not enough to pay for mortgage. Then continue with $0 then. $0 can pay for everything.

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    Quote Originally Posted by thomastansb View Post
    Location is not crucial. Price is the determinator. So what if your unit at orchard? If you asking 10k for studio, you think can rent out? So location don't play a part here. Location is only good if you use it as a secondary factor after price. Like orchard 5k, newton also 5k, then orchard has a higher chance. Doesn't mean orchard will close faster but higher chance.

    Woodlands likewise, don't tell me 1k for studio, cannot close in a week. I don't believe. Then there will be arguments saying 1k not enough to pay for mortgage. Then continue with $0 then. $0 can pay for everything.
    This post shows that grammar is totally unnecessary for written communication. Who needs verbs in any sentence? Nominate this guy for Nobel literature.

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    Orchard condo 3BR interest plus maintenance and taxes (not the 100 year old type) will trend towards $4,000 per month, assuming $2 million loan at 2% (long run).

    Punggol condo 3BR interest plus maintenance will be about half at $2,000, assuming $1 million loan at the same conditions. It is more easily deployed as a place of residence, and in the worst case scenario of no rental and can only leave empty, it is more pocket friendly and easier to hold.

    In any case, we are using examples that are too far-fetched. The plan and treatment for 1Bedders is different. 1 Bedders have an additional challenge of size on top of location. It can usually meet the investing and living needs of a single (who lives away from parent) or a newly wed couple. But what makes someone want to rent but not buy in Woodlands? I do have several friends and colleagues who live there and it's a great place to live, but renting out (and tenant profiles) can still be rather challenging. The rejuvenation of Woodlands is still a few years away for a greater pool of tenants. The HDBs here may also do better due to larger size.

    Nonetheless, this property clocked 14 total rental caveats in Nov 2017, with half being 1-bedders and the minimum transacted at $1,500. In terms of renting out, one has to scour the vicinity for the factors that attract specific potential tenants and try to stand out. The price of rent is one factor but not the only.


    Quote Originally Posted by teddybear View Post
    Don't talk stupid nonsense lah!

    Otherwise how do you explain a 3BR condo unit in Orchard can rent out for $6-8k p.m. while a similar size 3BR unit in Punggol can only rent out for $3k+ p.m.?
    Based on your logic, if Orchard can rent out at $6-8k p.m., shouldn't Punggol's similar size unit be able to rent out at about $6-8k p.m. too? Why now only less than half of $8k p.m.?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by Kelonguni View Post
    Orchard condo 3BR interest plus maintenance and taxes (not the 100 year old type) will trend towards $4,000 per month, assuming $2 million loan at 2% (long run).

    Punggol condo 3BR interest plus maintenance will be about half at $2,000, assuming $1 million loan at the same conditions. It is more easily deployed as a place of residence, and in the worst case scenario of no rental and can only leave empty, it is more pocket friendly and easier to hold.

    In any case, we are using examples that are too far-fetched. The plan and treatment for 1Bedders is different. 1 Bedders have an additional challenge of size on top of location. It can usually meet the investing and living needs of a single (who lives away from parent) or a newly wed couple. But what makes someone want to rent but not buy in Woodlands? I do have several friends and colleagues who live there and it's a great place to live, but renting out (and tenant profiles) can still be rather challenging. The rejuvenation of Woodlands is still a few years away for a greater pool of tenants. The HDBs here may also do better due to larger size.

    Nonetheless, this property clocked 14 total rental caveats in Nov 2017, with half being 1-bedders and the minimum transacted at $1,500. In terms of renting out, one has to scour the vicinity for the factors that attract specific potential tenants and try to stand out. The price of rent is one factor but not the only.
    Ya, this is the unit which i bought at a relatively low price of $507, but spending $15k on reno and furniture which ended up I only stayed for less than a year... The market rate for renting out 1 bedder at that project is ranging between $1.4k to $1.6k. My (one and only) agent told me that it is difficult as not everyone likes the reno, plus it is a small unit, only those who are single expat coming to Singapore to work for a period of time or those exchange student. I would say it is because the compatibility of the unit and the tenant is not much.

    And i missed the Meet-the-session with the MP yesterday, which means, I will need to wait till next year. My best hope is to sell away without any SSD. else i will need to find more agents to expand the net of renting out.

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    Change your current agent, seek out for 2 agents at most to avoid flooding the estate with repeats ad.
    My tenants gave up their deposit, just to break lease and take up mine. . Cause mine unit was renovated. Renovated is an bonus

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    By the way, is your unit the one with wooden platform in the living hall area, and mirrors cabinets..? And the atas power point plugs..

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    Your situation is still pretty solid. Even 1.4k SGD monthly rent if you refinanced at the recent low interest rates of below 2%, the basic yield is still over 3.3% and fork out tiny sum to continue to service mortgage.

    As Arcachon had highlighted before, this is like forced savings.

    Unless you urgently need the money.

    Selling with SSD should be the last option. If it were me, I would hold past the SSD period, after the new properties were about all sold and building is in progress for the new properties from next year.

    We need about 35K units per year (conservative estimate) with about half settled by HDBs, and this is just for occupying demand.


    Quote Originally Posted by leafe View Post
    Ya, this is the unit which i bought at a relatively low price of $507, but spending $15k on reno and furniture which ended up I only stayed for less than a year... The market rate for renting out 1 bedder at that project is ranging between $1.4k to $1.6k. My (one and only) agent told me that it is difficult as not everyone likes the reno, plus it is a small unit, only those who are single expat coming to Singapore to work for a period of time or those exchange student. I would say it is because the compatibility of the unit and the tenant is not much.

    And i missed the Meet-the-session with the MP yesterday, which means, I will need to wait till next year. My best hope is to sell away without any SSD. else i will need to find more agents to expand the net of renting out.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by leafe View Post
    Ya, this is the unit which i bought at a relatively low price of $507, but spending $15k on reno and furniture which ended up I only stayed for less than a year... The market rate for renting out 1 bedder at that project is ranging between $1.4k to $1.6k. My (one and only) agent told me that it is difficult as not everyone likes the reno, plus it is a small unit, only those who are single expat coming to Singapore to work for a period of time or those exchange student. I would say it is because the compatibility of the unit and the tenant is not much.

    And i missed the Meet-the-session with the MP yesterday, which means, I will need to wait till next year. My best hope is to sell away without any SSD. else i will need to find more agents to expand the net of renting out.
    Hahaha, You really believe meeting the MP can get you a waiver!! Don't be naive. That was a stupid suggestion.

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    Quote Originally Posted by otansg View Post
    Hahaha, You really believe meeting the MP can get you a waiver!! Don't be naive. That was a stupid suggestion.
    Never try never know. Anyway it's FOC for this try.

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    Quote Originally Posted by Kelonguni View Post
    Your situation is still pretty solid. Even 1.4k SGD monthly rent if you refinanced at the recent low interest rates of below 2%, the basic yield is still over 3.3% and fork out tiny sum to continue to service mortgage.

    As Arcachon had highlighted before, this is like forced savings.

    Unless you urgently need the money.

    Selling with SSD should be the last option. If it were me, I would hold past the SSD period, after the new properties were about all sold and building is in progress for the new properties from next year.

    We need about 35K units per year (conservative estimate) with about half settled by HDBs, and this is just for occupying demand.
    Most sensible advice so far...

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    Quote Originally Posted by jwong71 View Post
    By the way, is your unit the one with wooden platform in the living hall area, and mirrors cabinets..? And the atas power point plugs..
    Hahaha i wish lo! That reno smelly smelly also need 20-30k

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    Quote Originally Posted by Kelonguni View Post
    Your situation is still pretty solid. Even 1.4k SGD monthly rent if you refinanced at the recent low interest rates of below 2%, the basic yield is still over 3.3% and fork out tiny sum to continue to service mortgage.

    As Arcachon had highlighted before, this is like forced savings.

    Unless you urgently need the money.

    Selling with SSD should be the last option. If it were me, I would hold past the SSD period, after the new properties were about all sold and building is in progress for the new properties from next year.

    We need about 35K units per year (conservative estimate) with about half settled by HDBs, and this is just for occupying demand.
    Actually i did my calculation. I dont need money urgently. I can rent just that i need to keep monitoring this asset on my hand for at least 4yrs more. Plus my bank loan there is a locked down period of 3yrs.

    If i were to rent out the unit at 1.4k, understand from my agent is that i still need to pay for the maintenance which is app. $220 per month. Both Income & Property Tax will be higher since this additional income. So ended up i probably getting less than 1k? I understand it is still better than selling or leaving empty.. but isnt it kinda little for a 1 bedded condo?

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    Quote Originally Posted by leafe View Post
    Actually i did my calculation. I dont need money urgently. I can rent just that i need to keep monitoring this asset on my hand for at least 4yrs more. Plus my bank loan there is a locked down period of 3yrs.

    If i were to rent out the unit at 1.4k, understand from my agent is that i still need to pay for the maintenance which is app. $220 per month. Both Income & Property Tax will be higher since this additional income. So ended up i probably getting less than 1k? I understand it is still better than selling or leaving empty.. but isnt it kinda little for a 1 bedded condo?
    I still think it's better to wait for ssd to be over then consider selling. Property market sentiment is quite positive for the next 2 years. You could probably sell at a higher price later next year.

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    Annual rent is 16,800 if monthly rent $1,400.

    Interest paid annually should be about $6,780, offset against annual income, assuming 80% loan.

    Minus agent fee of $750 per year rent.

    Minus renovation $15,000 spread over 5-10 years depending on how they are counted. And other repair fees. Minus maintenance fees of $2,640.

    Need to declare honestly that this really doesn’t increase your income very much. Not more than a few thousand annually. The game changes when the property mortgage is about all paid up.

    I am sure you will make the wise decision.



    Quote Originally Posted by leafe View Post
    Actually i did my calculation. I dont need money urgently. I can rent just that i need to keep monitoring this asset on my hand for at least 4yrs more. Plus my bank loan there is a locked down period of 3yrs.

    If i were to rent out the unit at 1.4k, understand from my agent is that i still need to pay for the maintenance which is app. $220 per month. Both Income & Property Tax will be higher since this additional income. So ended up i probably getting less than 1k? I understand it is still better than selling or leaving empty.. but isnt it kinda little for a 1 bedded condo?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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