Removing ABSD will widen wealth gap

[reporter2]

http://www.straitstimes.com/forum/letters-in-print/removing-absd-will-widenwealth-gap

Removing ABSD will widen wealth gap

Jan 28, 2016


Holland-Bukit Timah GRC MP Christopher de Souza has called for the removal of the Additional Buyer's Stamp Duty (ABSD) for Singaporeans ("Tackling slowdown with help in job searches, worker levies"; Tuesday).

Relaxing this property curb is unlikely to benefit most Singaporeans, as the additional stamp duty applies only to those buying their second or third property.

Only the more well to do people will enjoy the benefit of this cooling measure being relaxed.

Allowing them to buy property with greater ease will drive up property prices and widen the wealth gap.

This will breed discontent among the people.

Poh Hao Jie

[Sandiwara]

Individual with a lot money will always find place to make their money working harder. If they cannot do it here the money can always going somewhere else.

[teddybear]

On the other hand, the ABSD already made allow the RICH to buy more properties at CRASHED price of <30% if they buy in the CCR!
See, they pay get 30% discount and pay 10% ABSD, still save 20% money!
So, either remove ABSD or not, the RICH still making money right?!

Instead, to prevent widening of wealth gap, and To allow ordinary people to be able to buy much cheaper properties even if they pay 10% ABSD, instead the letter writer should ask the government to introduce more cooling measures only targeted at OCR private condos so that they can buy CHEAP CHEAP!
Otherwise when the economy recovers, the ordinary people will still be as poor and can't make big money!!! :banghead:

Let me state a FACT: Most Singaporeans just don't know how to invest in equities and bonds!
They only can make money buying properties!
So is the government going to help the ordinary people and allow them to be able to buy property CHEAP CHEAP to make money or not???
Don't ask them to invest in equities and bonds because they just can't and >80% sure lose money!



http://www.straitstimes.com/forum/letters-in-print/removing-absd-will-widenwealth-gap

Removing ABSD will widen wealth gap

Jan 28, 2016


Holland-Bukit Timah GRC MP Christopher de Souza has called for the removal of the Additional Buyer's Stamp Duty (ABSD) for Singaporeans ("Tackling slowdown with help in job searches, worker levies"; Tuesday).

Relaxing this property curb is unlikely to benefit most Singaporeans, as the additional stamp duty applies only to those buying their second or third property.

Only the more well to do people will enjoy the benefit of this cooling measure being relaxed.

Allowing them to buy property with greater ease will drive up property prices and widen the wealth gap.

This will breed discontent among the people.

Poh Hao Jie

[proud owner]

Individual with a lot money will always find place to make their money working harder. If they cannot do it here the money can always going somewhere else.

Every government tries to keep the wealthy within.

Singapore is chasing their wealthy to divert their money outside singapore ..


There are many average income families who own HDB and have some spare... Keeping the ABSD in effect is depriving these average families a chance to own another property for rental income.

So is govt really helping them ? or sabotaging them ?

[Amber Woods]

Every government tries to keep the wealthy within.

Singapore is chasing their wealthy to divert their money outside singapore ..


There are many average income families who own HDB and have some spare... Keeping the ABSD in effect is depriving these average families a chance to own another property for rental income.

So is govt really helping them ? or sabotaging them ?

This group of people should be protected from the risk of buying property because they are highly vulnerable to falling asset prices. Unlike the rich, even if prices fall 50%, they are still rich but this group will become bankrupt.

That is the reason why the government started the Singapore Saving Bonds which average 10 years is more than 2.5% pa. This is as good as buying a second investment property which give about 2.5% after less property tax and maintenance cost.

Of course buying property can leverage and the actual return will be higher than 3% but leveraging is too much a risk for this group of people because they often buy at high price unlike the rich who understand the market better and know when to enter and exit.

In short, the ABSD is meant to protect this group of people.

[teddybear]

NO, you are wrong!
How can ABSD protect people from over-committing?
Obviously you are confusing TDSR with ABSD!
I don't think anybody dispute TDSR, but according to general opinions I heard, ABSD is just to collect more tax revenue (they say it is just that simple)!............

A side effect is that it causes luxury CCR property prices to crash 30% or more, allowing the RICH to buy luxury CCR property CHEAP CHEAP (to make more money),
while the OCR private property prices NEVER drop and the general population (like those you mentioned) has NO CHANCE to buy OCR private property CHEAP CHEAP...........


This group of people should be protected from the risk of buying property because they are highly vulnerable to falling asset prices. Unlike the rich, even if prices fall 50%, they are still rich but this group will become bankrupt.

That is the reason why the government started the Singapore Saving Bonds which average 10 years is more than 2.5% pa. This is as good as buying a second investment property which give about 2.5% after less property tax and maintenance cost.

Of course buying property can leverage and the actual return will be higher than 3% but leveraging is too much a risk for this group of people because they often buy at high price unlike the rich who understand the market better and know when to enter and exit.

In short, the ABSD is meant to protect this group of people.

[Kelonguni]

This group of people should be protected from the risk of buying property because they are highly vulnerable to falling asset prices. Unlike the rich, even if prices fall 50%, they are still rich but this group will become bankrupt.

That is the reason why the government started the Singapore Saving Bonds which average 10 years is more than 2.5% pa. This is as good as buying a second investment property which give about 2.5% after less property tax and maintenance cost.

Of course buying property can leverage and the actual return will be higher than 3% but leveraging is too much a risk for this group of people because they often buy at high price unlike the rich who understand the market better and know when to enter and exit.

In short, the ABSD is meant to protect this group of people.

Let's assume ABSD of 7% applicable for this group.

There are those that already have the 7% and those that do not. I agree that ABSD protects those who do not have the 7% yet on top of the downpayment.

Those that already have, they could pay down 7% more of their loan or reserve it as emergency instead of paying off as tax.

My feeling is that Govt is still wary about increasing debts so might be waiting for more of this group of second time buyers to accumulate the reserve first before reaching a critical mass and allowing them to buy. Hopefully by then, they can make the right decision to right-size their loans and not geikiang aim above their reach and borrow more because of cash reserves.