Hi guys, if say my relative is willing to sell me their condo for $1, is it possible? Is there any unwritten rules that condos must be sold near valuation?
I would also be able to save on the stamp duties if the condo can be sold to me at $1.
Newbie
Hi guys, if say my relative is willing to sell me their condo for $1, is it possible? Is there any unwritten rules that condos must be sold near valuation?
I would also be able to save on the stamp duties if the condo can be sold to me at $1.
I sell Cheese Pie
Tee Hee Hee, lidat even your lawyer fees would seem like a bomb by comparisonOriginally Posted by KC76
Junior
guideline is 0.3%. so if follow guideline...Tee Hee Hee, lidat even your lawyer fees would seem like a bomb by comparison
take bank loan LTV60% also can afford.
Not sure, but IRAS may tax you on profits when eventually sell.
Read a few cases somewhere where a doctor employ wife to be secretary, give her optimal but high salary. IRAS will adjust the salary and tax accordingly.
Junior
Dont think possible. For HDB they will look at bank valuation and yr final sales price must be there. Cannot sell lower...even divorced husband and wife.
Newbie
Oh, I am asking about private pty. Sorry if i wasnt concise earlier. I dun think min selling price is at valuation leh cos how about those firesales? Surely $100-200k below valuation?
Newbie
I have a similar situation as KC76 hope to get some advise
Junior
My advise, though I am blind regarding these splitting hairs stuff.
don't try to outsmart government regarding taxes.
You save 3% on stamp duties. They tax you (20% ???) on trading profit.
Junior
not an issue..
govt stepboard require the buyer and seller to sign,that they are not related to each other and is not a "fake" underwater sale.
i bgt mine 160k below VAL in 2008.
Exalted
Dun get caught nia.... If not invite both parties for kopi session
Global recession is coming....
Iras will still base their own valuation they deemed market rate n charge u accordingly, may not favorable..
Don't play a fool with them!
Emeritus Senior
I hear of friends mentioning cases where the landed is valued at, say, 2.5 million but they are willing to sell at 1million - provided you pay full in cash. I wonder what's the catch and if that is even possible?
The reasons could be to 'wash black money'?
Newbie
Good point worth thinking abt it since now the SD is at 16%, more room or loop hole to benefit from it. I would suggest the owner to consult a lawyer on this matter. Imagine 1mil =190k (SD for buyer and seller)tax rob by IRAS for doing...doing..doing ehhh...nothing ? If valuation at 1mil, bank max loan is 600k, buyer pay downpayment $400k, but stated in S&P agreement bought at $610K, therefore SD for seller and buyer is ard $115K. A saving of $75K (Only frm SD) not to mention saving on legal fees, agent fees.
Junior
Aiyo guys, IRAS is not stupid. Stamp duty is charged on the selling price, OR prevailing market price, whichever is higher. Nothing to do with loan or whatever. This clause is there specifically for this "$1" sale purpose.
Junior
wah, i play fast and loose within my own country, but i dont dare play in Singapore. Singaporeans here proposing $1 or severely underdeclare really dont know the meaning of die.
Global recession is coming....
They choose the previous highest transacted price (even if 1-off transaction) + 5% uptrend estimation as the prevailing market price then the $1 seller faint!
Junior
in imo, $1 sales can work, but need to fulfil certain condition
1) company trading properties. if sell at loss or below valuation, not much profit to be tax. pay only stamp duty as indicated by IRAS.
2) buyer is considered as investor. when he sell profit, it is considered as capital gains, so extraordinary profits not taxed.
of course cannot be until $1, too much and will attract attention. maybe 15%-20% below, can.
Newbie
just do a valuation and pay tax accordingly. After that, caveat whatever amount you need. Am I wrong here?
Newbie
1) chances you cant sell at $1, no lawyer willing act for u, otherwise they may get into trouble, licence suspended.
2) IRAS will invite both of u to have coffee.
My advise is ask your relative to a transfer as gift to u at valuation and pay the buyer stamp duty. Ask your relative to do a proper valuation using a valuer, since you are the paymaster, tell the valuer to value as low as possible. and since u have a proper valuation report, u will not get into trouble with the law.
my 2 cents worth
Newbie
Aiyah, you think so easy meh?
The Stamp Duties Act already anticipates such things where it is essentially a gift, in which case IRAS can disregard the value it is transferred for and impose what it thinks is appropriate.
The Stamp Duties Act also has provisions which provide that IRAS always has the power to ignore the value if it is of the view that it is meant to evade stamp duty.
Moral of the story? Don't do it otherwise sure get in trouble one, especially with the heightened scrutiny on property right now.
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