Property Gain Tax & Property Price

[rattydrama]

I know we are not paying ppty gain tax now except SSD. Can someone bring back the history of ppty gain tax and maybe speculate what will be the impact on property price if the government introduce property gain tax?

[Localite]

I think v little impact. previously the mkt was about to crash and this was just an excuse.

Frankly I think the curbs like 70% loan is much more strong compared with capital gains tax. Why is paying tax such a big deal. Only if you make money right. and the tax rate here is so low.

[Wild Falcon]

Minimal impact 60% financing for second home or homes above a certain absolute quantum (e.g. HK only 60% financing for home >$2.5 million) will have a greater impact.

[shauntanzs]

If I know I will get tax, I will sell even higher to recover the tax... So back to square one...
Same like the 3yrs SD... If i sell before 3 yrs, just add it into your selling price... Property price up again...

[sh]

Minimal impact 60% financing for second home or homes above a certain absolute quantum (e.g. HK only 60% financing for home >$2.5 million) will have a greater impact.

It's the lower valued properties (eg MMs and suburban units) that are running high.... the 60% financing should be across the board for 2nd homes. Actually, they should also increase the quantum for 1st non HDB homes to 70% to have more impact.

[Squall8888]

Singapore Government not dumb one. They know if they put in too many measures and prices fall, they will suffer at GE. Would they rather lose that less than 10% of people looking for houses or 80% of people who has a house?

[rattydrama]

Yes true, but property gain tax is a psychological thing, usually when people hear that, it is like a deterrent measure to invest.

The price now is at all time high, what if the government introduce it, would this add salt and trigger? scare!!

Hopefully the government will not trigger any drastic actions with the lakefront launch.

I think v little impact. previously the mkt was about to crash and this was just an excuse.

Frankly I think the curbs like 70% loan is much more strong compared with capital gains tax. Why is paying tax such a big deal. Only if you make money right. and the tax rate here is so low.

[DC33_2008]

Hotspots are forming all over singapore. Yishun - Bedok - Seletar and now Jurong west. What's next?

[kingkong1984]

Singapore Government not dumb one. They know if they put in too many measures and prices fall, they will suffer at GE. they rather lose that lesser than 10% of people looking for houses or 80% of people who has a house?

That,s why u have to buy the smallest unit. Cannot cut price can cut size. Buy now for staying cannot be wrong

[melodies]

Lim Chu Kang?
Ubin?
Tekong?

Hotspots are forming all over singapore. Yishun - Bedok - Seletar and now Jurong west. What's next?

[kane]

Actually, they should also increase the quantum for 1st non HDB homes to 70% to have more impact.

that would leave one group who have slightly more than 8k per month income but not enough to down pay 30% in a state of limbo.

in today's environment, husband and wife can quickly cross 8k but not quickly enough raise 30% on the value of a property.

[kingkong1984]

that would leave one group who have slightly more than 8k per month income but not enough to down pay 30% in a state of limbo.

in today's environment, husband and wife can quickly cross 8k but not quickly enough raise 30% on the value of a property.

So true, so they squeeze into a mm or a duplex mm penthouse. Dun wait, buy and sell to them later.

[kane]

So true, so they squeeze into a mm or a duplex mm penthouse. Dun wait, buy and sell to them later.

that'll make those mm 1 bedder sell even better. pity their babies, no place to crawl around. two paddles and they're in the kitchen, two more paddles and they're in the bedroom.

[DC33_2008]

Do not understand why people compromise on quality of lifestyle. Downsize and squeeze.

That,s why u have to buy the smallest unit. Cannot cut price can cut size. Buy now for staying cannot be wrong

[mcmlxxvi]

So true, so they squeeze into a mm or a duplex mm penthouse. Dun wait, buy and sell to them later.

Mm will never go wrong, mm mickey mouse mm m&m chocs mm lee mm mr minit mm minute maid mm marina mandarin mm mac mini mm mmmmmmmm mm all the way all proven to sell!

Oh and mm mCm kekeke

[rattydrama]

Lim Chu Kang?
Ubin?
Tekong?

Lim Chu Kang is an interesting place. I grew up there and have a chance to visit a friend where her house is just in front of the seaside. I have to walk 1 hr from my house in order to reach her place. Right now is a restricted zone.

Its a nice place like in Pulau Langakwi seaside, like a paradise.

[richwang]

Here are some ideas to make the hot money to stay cool!
US is printing 75B per month. Let's say just 1% of that comes to Singapore, that is 750M USD per month. If half goes to property market (another half goes to stock market), that is 300M+ USD per month, good enough to buy 100++ high end units. Maybe my 1% assumption is still too high. Anyway, I am always more worried about the exit of this hot money. So let's introduce something to keep it cool.

If they sell

1) in the 1st year, 100% property gain tax;
2) in the 2nd year, 80% property gain tax;
3) in the 3rd year, 60% property gain tax;
4) in the 4th year, 40% property gain tax;
5) in the 5th year, 20% property gain tax;
6) in the 6th year and onwards, 0%

This effectively converts "speculators" into "investors". They have absolutely no money to make if they just hold the property less than one year. But no tax impact if they plan to hold for more than 5 years.

Thanks,
Richard

[devilplate]

Here are some ideas to make the hot money to stay cool!
US is printing 75B per month. Let's say just 1% of that comes to Singapore, that is 750M USD per month. If half goes to property market (another half goes to stock market), that is 300M+ USD per month, good enough to buy 100++ high end units. Maybe my 1% assumption is still too high. Anyway, I am always more worried about the exit of this hot money. So let's introduce something to keep it cool.

If they sell

1) in the 1st year, 100% property gain tax;
2) in the 2nd year, 80% property gain tax;
3) in the 3rd year, 60% property gain tax;
4) in the 4th year, 40% property gain tax;
5) in the 5th year, 20% property gain tax;
6) in the 6th year and onwards, 0%

This effectively converts "speculators" into "investors". They have absolutely no money to make if they just hold the property less than one year. But no tax impact if they plan to hold for more than 5 years.

Thanks,
Richard

on flip side, supply become lesser and may cause prices to go up? imagine all hold for 5yrs den put on market...

[rattydrama]

on flip side, supply become lesser and may cause prices to go up? imagine all hold for 5yrs den put on market...

maybe all ready investors/speculators will put on hold causing supply more than demand? this may created a vicious cycle when developer start to off load at cheap price. scared scared


if FEO decides to cut price, i may worry rather than happy.

[hopeful]

Actually, we are already paying capital gains tax, with tax rate of 0%.
So capital gains tax may not be so scary afterall. It all depends of tax rate and tax bracket. For example, the first $1million profit is 0%. Not scary right?

It will only slow down the property bull. but won't reverse course

[shauntanzs]

Can't imagine you pay 400k for a 1mil but only collect 3k rental every month.. Is that the best way to park your $$$