More measures to cool market

[Lovelle]

The Government on Thursday announced more measures to cool the property market.

The holding period for imposition of Seller's Stamp Duty (SSD) will be increased from the current three years to four years.
The SSD rates will be raised to 16 per cent, 12 per cent, 8 per cent and 4 per cent of consideration for residential properties which are bought on or after January 14, 2011, and are sold in the first, second, third and fourth year of purchase respectively;
The government will also lower the Loan-To-Value (LTV) limit to 50 per cent on housing loans granted by financial institutions regulated by the Monetary Authority of Singapore (MAS) for property purchasers who are not individuals.
And for property purchasers who are individuals with one or more outstanding housing loans at the time of the new home, the LTV limit on housing loans granted by financial institutions regulated by MAS will be lowered from 70 per cent to 60 per cent.
The measures will take effect on January 14, 2011.

[kingkong1984]

The Government on Thursday announced more measures to cool the property market.

The holding period for imposition of Seller's Stamp Duty (SSD) will be increased from the current three years to four years.
The SSD rates will be raised to 16 per cent, 12 per cent, 8 per cent and 4 per cent of consideration for residential properties which are bought on or after January 14, 2011, and are sold in the first, second, third and fourth year of purchase respectively;
The government will also lower the Loan-To-Value (LTV) limit to 50 per cent on housing loans granted by financial institutions regulated by the Monetary Authority of Singapore (MAS) for property purchasers who are not individuals.
And for property purchasers who are individuals with one or more outstanding housing loans at the time of the new home, the LTV limit on housing loans granted by financial institutions regulated by MAS will be lowered from 70 per cent to 60 per cent.
The measures will take effect on January 14, 2011.

U beat me to it!

[devilplate]

The Government on Thursday announced more measures to cool the property market.

The holding period for imposition of Seller's Stamp Duty (SSD) will be increased from the current three years to four years.
The SSD rates will be raised to 16 per cent, 12 per cent, 8 per cent and 4 per cent of consideration for residential properties which are bought on or after January 14, 2011, and are sold in the first, second, third and fourth year of purchase respectively;
The government will also lower the Loan-To-Value (LTV) limit to 50 per cent on housing loans granted by financial institutions regulated by the Monetary Authority of Singapore (MAS) for property purchasers who are not individuals.
And for property purchasers who are individuals with one or more outstanding housing loans at the time of the new home, the LTV limit on housing loans granted by financial institutions regulated by MAS will be lowered from 70 per cent to 60 per cent.
The measures will take effect on January 14, 2011.

looks like 50% LTV for non individuals will put Enbloc to a STOP....

60% LTV....kind of expected...

the SSD machiam like capital gain tax!.....if market downturn how....those who sold at a loss still kena 4-16% SSD!!! wow....i tink SSD more jialat den cap gain tax leh....

now really small is beauitful liao......sianz.....more MMs to come

[jitkiat]

That's it ... end of the bull run liao

[devilplate]

That's it ... end of the bull run liao

small units within 1mil will still run.....

[Lovelle]

hi kingkong,

1 time only,,,,this capital gain tax like Australia right ?

How like that ?

[bargain hunter]

http://www.ura.gov.sg/pr/text/2011/pr11-07.html

[devilplate]

the SSD really HIONG hor....

if downturn nvr surface within next 2-3yrs...den there will be very few firesale in future liao....

who will sell their ppty within first 3 yrs....4th yr at 4% to me also ALOT!

subsale will be dead....agts earn lesser....lol

[devilplate]

BUY MORE STOCKS!!!!!!!!!!!

COLLECT ANGBAOS

[jitkiat]

Forced holding for 3-4y is definitely too risky from an investment perspective ... what if US 10y bond yield went to 8% 2y later Anything can happen in 4 years !!!

Pity those who bought > 1kpsf for Jurong Lake District story ... caught at the peak already

[devilplate]

Forced holding for 3-4y is definitely too risky from an investment perspective ... what if US 10y bond yield went to 8% 2y later Anything can happen in 4 years !!!

3YRS FIXED RATE MIGHT GO UP BY TMR!

[Regulators]

Time to vote pap out liao

[devilplate]

Time to vote pap out liao

tot tats wat the minority wanted to see? hehe.....

[kingkong1984]

That's it ... end of the bull run liao

Yes...... No more casino story Liao.casino start to lose money soon..,, haha beware double whammy..,, buy now and if stock crash. U r gone.

[kingkong1984]

Forced holding for 3-4y is definitely too risky from an investment perspective ... what if US 10y bond yield went to 8% 2y later Anything can happen in 4 years !!!

Pity those who bought > 1kpsf for Jurong Lake District story ... caught at the peak already

Haha really? Got jurong peak story to tell mah. Actually it's only for properties bought after 14 Jan...... 1 4 means one dead gents in 2011, they have to hold 5 yrs and sell nett. Maybe lose money. Poor Peter ng.., run away Liao.

[rattydrama]

16% SSD machiam capital gain tax that is what I am worried about all these while. Kill the market straight away. Investor die liao.

[rattydrama]

3YRS FIXED RATE MIGHT GO UP BY TMR!

Sure Bo? Too much liquidity on 14 Jan onwards no one borrowing ....liao

[kingkong1984]

16% SSD machiam capital gain tax that is what I am worried about all these while. Kill the market straight away. Investor die liao.

U should be alright. I worry for devil late. Late in running, selling and dancing,

[rattydrama]

My 1000 post here. What a day!!!!

[rattydrama]

U should be alright. I worry for devil late. Late in running, selling and dancing,

Don't think need to. His buying price damn low take rental also olso sleep damn well. He read and preach rich dad poor dad.... an lah ....

[bargain hunter]

congrats!

My 1000 post here. What a day!!!!

[bargain hunter]

16% is not even a tax, it is a FEE! its like paying 16% more in commission to the govt like that!

16% SSD machiam capital gain tax that is what I am worried about all these while. Kill the market straight away. Investor die liao.

[bargain hunter]

oh yeah! i have been so busy lately.

BUY MORE STOCKS!!!!!!!!!!!

COLLECT ANGBAOS

[jwong71]

Don't think need to. His buying price damn low take rental also olso sleep damn well. He read and preach rich dad poor dad.... an lah ....

even if buy low,and wf new measures coming out.. affecting the properties prices to go low as well.? indirectly impacting on the rental too..? that shld weed out investors or speculators,in the MM sector.. isnt it..??

*i believe measures willl be coming out,that y i didnt buy the cheapsale units i viewed these few days,and wont want get myself stuck in such situation and go down together..

[mcmlxxvi]

New measures to cool Singapore's property market

Thu, Jan 13, 2011
AsiaOne

SINGAPORE - The Singapore government today announced new measures to maintain a stable and sustainable property market, which will take effect by tomorrow, January 14.

From tomorrow, the holding period for the imposition of Seller's Stamp Duty (SSD) will be increased from the current three years to four years.

Currently, for residential properties bought on or after 30 August 2010, SSD is imposed on the sale of such properties within three years of purchase. This followed the introduction of SSD for residential properties bought on or after 20 February 2010.

The SSD rates will also be increased sharply so as to provide a strong disincentive for investors looking to make
short term gains. The impact of the SSD is especially significant as it is payable regardless whether the property is eventually sold at a gain or loss.

For residential properties bought on or after 14 January 2011, the SSD rates to be levied on the full consideration will be increased to as follows:

SSD at 16 per cent (higher than up to 3 per cent currently), if the property is sold in the first year of purchase, i.e. the property is held for 1 year or less from its purchase date.

SSD at 12 per cent (higher than up to 2 per cent currently), if the property is sold in the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years.

SSD at 8 per cent (higher than up to 1 per cent currently), if the property is sold in the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years.

SSD at 4 per cent (no SSD currently), if the property is sold in the fourth year of purchase, i.e. the property is held for more than 3 years and up to 4 years.
Currently, the SSD rates are levied at the same rate as buyer's stamp duty, i.e. 1 per cent for the first $180,000, 2 per cent for the next $180,000 and 3% on the balance. The SSD rates are tiered according to the duration of the holding period, i.e. the seller pays the full SSD rate if the residential property is sold in the first year of purchase; 2/3 the full SSD rate if the sale is in the second year; 1/3 the full SSD rate if in the third year.


Changes to Loan-To-Value limit

The Loan-To-Value (LTV) limit on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals will be lowered to 50 per cent. This includes corporations, trusts and collective investment schemes, among others, as well as to joint property purchases by an individual and a purchaser who is not an individual.

Meanwhile, the LTV limit on housing loans granted by financial institutions regulated by MAS individuals with one or more outstanding housing loans at the time of the new housing purchase will be lowered from 70 per cent to 60 per cent.

However, borrowers who can show evidence that they have sold their existing properties will not be subject to the lower LTV limit when they buy a new property. Where the existing property is a private property, he can show a signed Sale & Purchase (S&P) agreement with the IRAS certificate showing that stamp duty has been paid on it. Where the existing property is a HDB flat, he can show HDB's approval letter to sell the flat, that HDB will issue within 2 weeks of the First Appointment. These borrowers will still be able to borrow at an 80 per cent LTV from financial institutions.

Borrowers without any outstanding housing loans continue to have a LTV cap of 80 per cent.

These rules apply to housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats (including DBSS flats).

Loans granted by HDB for HDB flats (including DBSS flats) will still have a LTV cap of 90 per cent.

The Government will continue to monitor the property market closely and take further steps to promote a stable and sustainable property market if necessary.

[kane]

the writing was on the wall, i was just wondering what took singapore so long to catch up with HK. and someone was telling me singapore is in a different circumstance than HK so the policies will be different. it doesn't look so different after today's announcement.

and by the way, i heard from my HK friends that transaction is picking up again. so i think singapore property will quieten down for another quarter till Apr and May before some activity comes back as parents start to hunt for places near schools of their choices.

[bargain hunter]

can i conclude that if there is any firesale in the next 2 or 3 years, look out for those bought before 14th jan 2011?

the SSD really HIONG hor....

if downturn nvr surface within next 2-3yrs...den there will be very few firesale in future liao....

who will sell their ppty within first 3 yrs....4th yr at 4% to me also ALOT!

subsale will be dead....agts earn lesser....lol

[Regulators]

Should be majority of people who think that way, just their kiasi mentality and fear that their livelihood gets rocked that inhibit them from standing up against govt in full force

[bargain hunter]

thursday the 13TH. 32,000 property agent's unlucky day.

Haha really? Got jurong peak story to tell mah. Actually it's only for properties bought after 14 Jan...... 1 4 means one dead gents in 2011, they have to hold 5 yrs and sell nett. Maybe lose money. Poor Peter ng.., run away Liao.

[bargain hunter]

election is possibly in apr/may mah.

the writing was on the wall, i was just wondering what took singapore so long to catch up with HK. and someone was telling me singapore is in a different circumstance than HK so the policies will be different. it doesn't look so different after today's announcement.

and by the way, i heard from my HK friends that transaction is picking up again. so i think singapore property will quieten down for another quarter till Apr and May before some activity comes back as parents start to hunt for places near schools of their choices.