View Full Version : 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!
SGPropertyKaki
15-12-17, 08:16
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.
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.
tonymontana
15-12-17, 08:35
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.
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?
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.
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 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.
thomastansb
15-12-17, 22:59
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. 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.
thomastansb
16-12-17, 11:50
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.
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.
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.
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.
Didn’t he bgt it at 507k..?
Rental still 1.6k lei.
tonymontana
16-12-17, 15:09
507k the rental should be able to cover ba. It could be the agent a bit lazy. rental 1500 give or take for MM .
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.
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.
thomastansb
17-12-17, 22:26
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.
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.? :p
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.
stalingrad
18-12-17, 04:05
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.
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.
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.? :p
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.
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
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..
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.
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.
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.
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.
anythingwhatever
20-12-17, 21:47
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... :)
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
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?
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.
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.
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?
Worth waiting forever if it is a Freehold, since time is on his/her side.
If not, situation will become like what has been reported here:
https://www.facebook.com/assi.ak.9
"Simeon Kong: Normally Gov will avoid questions what to do when the tenures expired for public housing.....but not in Singapore. My friend’s HDB is now finding it hard to sell even though it has a good location as it is a 45 years old flat."
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.
More about the problems with leasehold properties..........
https://singaporeanstocksinvestor.blogspot.sg/2017/07/bought-more-viva-industrial-trust-and.html
Don't care me hor.
Listen to John Lim better.
Who is John Lim? Who else?
In an interview, John Lim said there is an issue with the structure of the Singapore industrial property market. The land tenures are relatively short and valuations will fall because they are aligned to tenure.
Worth waiting forever if it is a Freehold, since time is on his/her side.
If not, situation will become like what has been reported here:
https://www.facebook.com/assi.ak.9
"Simeon Kong: Normally Gov will avoid questions what to do when the tenures expired for public housing.....but not in Singapore. My friend’s HDB is now finding it hard to sell even though it has a good location as it is a 45 years old flat."
Different case leh, this one still has 90 years +- left.
Worth waiting forever if it is a Freehold, since time is on his/her side.
If not, situation will become like what has been reported here:
https://www.facebook.com/assi.ak.9
"Simeon Kong: Normally Gov will avoid questions what to do when the tenures expired for public housing.....but not in Singapore. My friend’s HDB is now finding it hard to sell even though it has a good location as it is a 45 years old flat."
Industrial land starts at 30 years
More about the problems with leasehold properties..........
https://singaporeanstocksinvestor.blogspot.sg/2017/07/bought-more-viva-industrial-trust-and.html
Don't care me hor.
Listen to John Lim better.
Who is John Lim? Who else?
In an interview, John Lim said there is an issue with the structure of the Singapore industrial property market. The land tenures are relatively short and valuations will fall because they are aligned to tenure.
tonymontana
22-12-17, 06:58
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?
Sounds like a not so good agent to me what is this. Lazy. People ask to find tenant kpkb tenant profile not match.
Most agents prefer to deal with sellers than landlords. Hassle free and earn much more.
Sounds like a not so good agent to me what is this. Lazy. People ask to find tenant kpkb tenant profile not match.
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.
Thanks for the advice. I calculated. Annual i only have an additional income of app. $5k! Not even enough to repay the bank loan. 😭
Most agents prefer to deal with sellers than landlords. Hassle free and earn much more.
Ya this is what she told me as well. She usually do selling cos just sell and disappear. But she is doing me a favour by helping me with my unit cos recommended by a mutual friend. So perhaps she is more stringent on tenant selection in order to avoid further trouble?
tonymontana
22-12-17, 17:54
Most agents prefer to deal with sellers than landlords. Hassle free and earn much more.
Alright, fair enough. So how would u "motivate" your agent to serve you better? Any tips?
:p
Paying interest is also repaying bank loan as no loan will come without interests.
Net income of 5k based on your already vested deposit of about 120k plus downpayment and stamp duties plus reno of 15k is still 3.7% yields. Still better than most instruments in the market. Better than OA interest rates. New properties especially your type bought at absolute lows are unlikely to experience depreciation so it should be very safe to opt to hold past SSD.
Moreover, don't plan to go $1400 at first shot. Aim higher and try for a while then switch low if no takers. Keep in mind which type of tenants would be takers.
Thanks for the advice. I calculated. Annual i only have an additional income of app. $5k! Not even enough to repay the bank loan. 😭
Best to have a few properties and give a few agents to handle (max 2-3 per property). Gauge how their performance and after sales service are and let the best agent handle all your properties.
For me there is an advantage cos I have relatives and good friends who are agents.
The other way is to ask for recommendations from others to find a keen and reliable agent.
Once found, try to continue to award them the annual renewal fees. The payment lowers the income tax from rent and helps maintain solid relationship with the agents.
Alright, fair enough. So how would u "motivate" your agent to serve you better? Any tips?
:p
Best to have a few properties and give a few agents to handle (max 2-3 per property). Gauge how their performance and after sales service are and let the best agent handle all your properties.
For me there is an advantage cos I have relatives and good friends who are agents.
The other way is to ask for recommendations from others to find a keen and reliable agent.
Once found, try to continue to award them the annual renewal fees. The payment lowers the income tax from rent and helps maintain solid relationship with the agents.
Not many will understand or do it, most chose to gain small lost big.
I share more to those who like my sharing other just noise in the air.
Paying interest is also repaying bank loan as no loan will come without interests.
Net income of 5k based on your already vested deposit of about 120k plus downpayment and stamp duties plus reno of 15k is still 3.7% yields. Still better than most instruments in the market. Better than OA interest rates. New properties especially your type bought at absolute lows are unlikely to experience depreciation so it should be very safe to opt to hold past SSD.
Moreover, don't plan to go $1400 at first shot. Aim higher and try for a while then switch low if no takers. Keep in mind which type of tenants would be takers.
Im setting at $1.7k in order to have the buffer for negotiations. Plus my agent gave a idea to throw in a bi-weekly or monthly housekeeping which i can upkeep the unit and also to ensure tenant wont do funny things. She told me commission will be 2 mths worth of rental. Not earning much after all the deduction, but really better than bank interest.
I think your agent ka you. This is the highest I have heard before.
Make him / her in charge of all the cleaning schedule.
Im setting at $1.7k in order to have the buffer for negotiations. Plus my agent gave a idea to throw in a bi-weekly or monthly housekeeping which i can upkeep the unit and also to ensure tenant wont do funny things. She told me commission will be 2 mths worth of rental. Not earning much after all the deduction, but really better than bank interest.
tonymontana
23-12-17, 21:34
Im setting at $1.7k in order to have the buffer for negotiations. Plus my agent gave a idea to throw in a bi-weekly or monthly housekeeping which i can upkeep the unit and also to ensure tenant wont do funny things. She told me commission will be 2 mths worth of rental. Not earning much after all the deduction, but really better than bank interest.
2 months commission?? For what? I said it alrd, lousy agent. Fire her pronto.
2 months commission?? For what? I said it alrd, lousy agent. Fire her pronto.
https://www.99.co/blog/singapore/commission-property-agents/
just read up, at the most 1 month rental for 2 years lease. hmmm... where can i find more reliable agents? empty unit = losing money..
commission = 0.5 month rental for each year of lease is the norm, but obviously this refers to the typical family unit of higher rental.
If your unit's rental is too low, good agents are typically not interested because they will be spending same time to rent out a unit but only getting so low agent fee.
If you don't believe, you can ask Arachon here about this and see whether he will spend all his time to help you to find a tenant for your unit?
I would bet most agents will take "opportunistic" approach to properties with low rental - i.e. they just sit back and wait for tenants to come instead of seeking out tenants pro-actively (the latter they will be doing for those units with high rental per month).
If I am the agent I will also actively only work for those units with rental >$5k p.m. and 1 month I just need at least 1 contract of 2 years lease can liao! the rest of the income can come from selling properties, 1 unit of >$3M every 2 months also good enough liao! I won't bother with those whose rental is <$4k p.m. or those property price <$2.5M. Less work and more pay!
https://www.99.co/blog/singapore/commission-property-agents/
just read up, at the most 1 month rental for 2 years lease. hmmm... where can i find more reliable agents? empty unit = losing money..
proud owner
26-12-17, 18:05
commission = 0.5 month rental for each year of lease is the norm, but obviously this refers to the typical family unit of higher rental.
If your unit's rental is too low, good agents are typically not interested because they will be spending same time to rent out a unit but only getting so low agent fee.
If you don't believe, you can ask Arachon here about this and see whether he will spend all his time to help you to find a tenant for your unit?
I would bet most agents will take "opportunistic" approach to properties with low rental - i.e. they just sit back and wait for tenants to come instead of seeking out tenants pro-actively (the latter they will be doing for those units with high rental per month).
If I am the agent I will also actively only work for those units with rental >$5k p.m. and 1 month I just need at least 1 contract of 2 years lease can liao! the rest of the income can come from selling properties, 1 unit of >$3M every 2 months also good enough liao! I won't bother with those whose rental is <$4k p.m. or those property price <$2.5M. Less work and more pay!
It is quite true that most agents, for that matter, EVERYONE of us.. do the same.
If company A pays $10k salary, and company B pays $8k for the same job, same scope of work, same environment, perks etc ... which would you choose?
majority, if not all will choose to work for company A.
We all work for $$ ...
At the end of the day, like one of you mentioned, it boils down to relationship (with your agent).
Sometimes it is the Landlords that spoilt the practice. Many choose to Cut the agent out as soon as he secures a tenant.
I always pay my agent comm on renewal. i have properties that are tenanted at $10k a month for the last 10 years. and i use the same agent. He works like "COW AND HORSE" for me.. he deserves the comm..
Many landlords choose not to pay comm on renewal...it is true that renewal is very easy...same client after all. So why should landlord pay agent again?
But landlords never think... agents also need to survive siah ???
Agent can always recommend the tenant another unit ... and walah..... you lose your rental income straight away ... if unlucky, no tenant for the next 6 months...
the Loss is so much greater than the comm....
so a good relationship with agent is very important.
Perhaps u want to try to find a “resident” agent or agent who specialise in the condo if not in the area. The cost for such agents are low but they do serve a number of owners.
It is quite true that most agents, for that matter, EVERYONE of us.. do the same.
If company A pays $10k salary, and company B pays $8k for the same job, same scope of work, same environment, perks etc ... which would you choose?
majority, if not all will choose to work for company A.
We all work for $$ ...
At the end of the day, like one of you mentioned, it boils down to relationship (with your agent).
Sometimes it is the Landlords that spoilt the practice. Many choose to Cut the agent out as soon as he secures a tenant.
I always pay my agent comm on renewal. i have properties that are tenanted at $10k a month for the last 10 years. and i use the same agent. He works like "COW AND HORSE" for me.. he deserves the comm..
Many landlords choose not to pay comm on renewal...it is true that renewal is very easy...same client after all. So why should landlord pay agent again?
But landlords never think... agents also need to survive siah ???
Agent can always recommend the tenant another unit ... and walah..... you lose your rental income straight away ... if unlucky, no tenant for the next 6 months...
the Loss is so much greater than the comm....
so a good relationship with agent is very important.
this is true. also depending on the responsibility of the agent. cos *touch wood*, the tenant chu pattern, the agent will need to settle no matter what. this is what he/she being paid for. for this, if the commission is reasonable, i'm willing to pay cos afterall they work for money. this is what my agent told me for the 2 mths commission. She said if anything, she will be the one to settle, no need to trouble me.
Perhaps u want to try to find a “resident” agent or agent who specialise in the condo if not in the area. The cost for such agents are low but they do serve a number of owners.
ya, i tend to receive all these flyers inside my condo letterbox. but seems like supply > demand... i can see a few units trying to sell/rent since 6mths ago.. some even trying to sell a yr ago! i never realised it is so challenging to get it rented..
your condo parc rosewood?
prashantnative
27-12-17, 11:47
SSD is payable on all residential properties and residential lands that are bought on or after 20 Feb 2010 and sold within the holding period.
your condo parc rosewood?
yup
yea! i finally able to rent out the unit at 1.6k (including all furniture and MCST fee). now i have another headache is how to declare for the income tax. anyone can advice? trying to lower the amount taxable.
Not bad leh. Rent out in 1 month. Market still steady.
My turn over was only a few days gap before next Tenant came in.
Check my previous post on income tax reduction. Namely interest, agent fees, maintenance fees, and furnishings spread (or concentrated) over the year(s) of use.
yea! i finally able to rent out the unit at 1.6k (including all furniture and MCST fee). now i have another headache is how to declare for the income tax. anyone can advice? trying to lower the amount taxable.
buyer_east
21-01-18, 13:41
yea! i finally able to rent out the unit at 1.6k (including all furniture and MCST fee). now i have another headache is how to declare for the income tax. anyone can advice? trying to lower the amount taxable.
Parc rosewood rental yield is high at 3.5+%.
buyer_east
21-01-18, 13:43
Not bad leh. Rent out in 1 month. Market still steady.
My turn over was only a few days gap before next Tenant came in.
Check my previous post on income tax reduction. Namely interest, agent fees, maintenance fees, and furnishings spread (or concentrated) over the year(s) of use.
Where is the thread?
Can cost of a rental condo be depreciated for income tax advantages?
It's like 20% tax for a rental condo, 4~7~11% marginal income tax for rental and 10% of property tax.
Where is the thread?
Can cost of a rental condo be depreciated for income tax advantages?
It's like 20% tax for a rental condo, 4~7~11% marginal income tax for rental and 10% of property tax.
One of the earlier pages in this thread. I calculated that about $7,000 was interest paid. Property tax maybe another 1,000. Agent fee about 900.
Property tax can claim as expenditure. Reno and maintenance also.
Minus off all these, the taxable income base should not exceed 10,000. Even max tax rate it’s probably 2K+, unless Govt changes tax rules this year.
In any case, if really need to offset those rental amount (high income earner), can deposit into SRS account about 15,000. Provided the tax laws do not change, this is still very viable. 0 tax chargeable.
But do also note that your rental income in 2018 will only incur income tax you pay in 2019.
that reminds me... so if i rented out Feb-18, so i will only declare in 2019 IRAS... made me so worried..
In any case, if really need to offset those rental amount (high income earner), can deposit into SRS account about 15,000. Provided the tax laws do not change, this is still very viable. 0 tax chargeable.
But do also note that your rental income in 2018 will only incur income tax you pay in 2019.
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