Who is paying ABSD?

**Ringo33** · 24-09-12, 11:47

$450m of ABSD

Foreigners (10%)
$261m = $2610m worth of property with average unit value of $1.86m

Singaporeans & PR (3%)
$189m = $6,300m.

It looks like the 3% ABSD is not deterring Singaporeans and PR from buying their 3rd or 2nd property. sad to say one the sucker is me.

The taxman has collected more than half a billion dollars from additional stamp duties imposed as part of property cooling measures.
The additional buyer's stamp duty (ABSD) has contributed the bulk of that - $450million between its inception on Dec 8 last year and the end of last month.

A further $51million has come from the seller's stamp duty since it was implemented in February 2010, the Inland Revenue Authority of Singapore (Iras) said. According to Iras' annual report, it collected $2.5 billion in stamp duty from sale and purchase agreements in its financial year ended March 31, 2011.

The ABSD take includes about $261million collected from foreigners who are not permanent residents (PRs), who bought about 1,400 homes in the nine months to the end of last month, Iras told The Straits Times. These foreigners comprised about one in four of the buyers who have paid the additional tax.

**phantom_opera** · 24-09-12, 11:49

Congrats, which project u bought?? ABSD is 3%?? So BSD + ADBSD almost 5.5%??

**Ringo33** · 24-09-12, 11:52

Originally Posted by phantom_opera

Congrats, which project u bought?? ABSD is 3%?? So BSD + ADBSD almost 5.5%??

Yes. amortized it over 4 years loh..

**phantom_opera** · 24-09-12, 11:58

the overall effect of ABSD is to cancel out advantages of low mortgage rate for those planning to sell after holding 4y

it is almost like buying with a 4-5% loan

**carbuncle** · 24-09-12, 12:08

Thank You for your contribution to Nation building.

**Ringo33** · 24-09-12, 12:20

Originally Posted by phantom_opera

the overall effect of ABSD is to cancel out advantages of low mortgage rate for those planning to sell after holding 4y

it is almost like buying with a 4-5% loan

If you dont buy, money in the bank also kenna whack by 4-5% by inflation.
Beside inflation, price and location, one other motivating factor for me was also the risk of kobi-wan increase the ABSD for SC and PR.

If you look at the numbers, $6.3b worth of property bought by SC & PR under ABSD. Assuming average unit price is $1.5m, that will translate into 4200 units. Still have sizable numbers.

**phantom_opera** · 24-09-12, 12:24

imo, OCR has peaked at 1400psf liao .... ECO is border line liao

of course there is always hope that median salary will catch up year by year

**carbuncle** · 24-09-12, 12:29

D16 is prime of ocr. so other ocr still have room to catch up

**phantom_opera** · 24-09-12, 12:36

you see Laguna bought that 3br at 1.37m quantum (already vvip first 50)

consider median income of family at 14k including employer CPF ... also quite stretched liao

if can loan 80% means about 1.1m loan, if interest rate is at 2%, monthly payment will be 4k, if interest up to 3% monthly payment will be 4.5k, if interest rises to 5% (which is quite normal if FD is at 3%), monthly payment is 5.7k !!!

**radha08** · 24-09-12, 14:39

Originally Posted by phantom_opera

you see Laguna bought that 3br at 1.37m quantum (already vvip first 50)

consider median income of family at 14k including employer CPF ... also quite stretched liao

if can loan 80% means about 1.1m loan, if interest rate is at 2%, monthly payment will be 4k, if interest up to 3% monthly payment will be 4.5k, if interest rises to 5% (which is quite normal if FD is at 3%), monthly payment is 5.7k !!!

if interest rate go up whole market will collapse everybody will die...ruling party kena thrown out of power...so it wont happen...

**phantom_opera** · 24-09-12, 14:53

Originally Posted by radha08

if interest rate go up whole market will collapse everybody will die...ruling party kena thrown out of power...so it wont happen...

there is a reason why Black Swan is called a Black Swan and everybody is obviously unprepared for it

**simple** · 24-09-12, 14:57

Originally Posted by Ringo33

$450m of ABSD

Foreigners (10%)
$261m = $2610m worth of property with average unit value of $1.86m

Singaporeans & PR (3%)
$189m = $6,300m.

It looks like the 3% ABSD is not deterring Singaporeans and PR from buying their 3rd or 2nd property. sad to say one the sucker is me.

i suspect Ringo33 is aka Regulator

**buttercarp** · 24-09-12, 15:00

Originally Posted by phantom_opera

there is a reason why Black Swan is called a Black Swan and everybody is obviously unprepared for it

Seems like the world is united and everyone is dependent on one another.
Which is good!
Black swan could be a virus or bacterial or some alien........

**Kelonguni** · 24-09-12, 16:54

Originally Posted by radha08

if interest rate go up whole market will collapse everybody will die...ruling party kena thrown out of power...so it wont happen...

It (interest rates rising) will happen one day but not yet. Maybe 2015-16 after the next GE. One fine day the tide will turn. But then, when it does, maybe rents will go up. So no way to predict price direction...

**Ringo33** · 24-09-12, 17:30

Originally Posted by Kelonguni

It (interest rates rising) will happen one day but not yet. Maybe 2015-16 after the next GE. One fine day the tide will turn. But then, when it does, maybe rents will go up. So no way to predict price direction...

Its a no brainer that what goes up must come down or vice-verse, but the million dollar questions are when and by how much.

**cnud** · 24-09-12, 17:30

Originally Posted by Kelonguni

It (interest rates rising) will happen one day but not yet. Maybe 2015-16 after the next GE. One fine day the tide will turn. But then, when it does, maybe rents will go up. So no way to predict price direction...

Where got no way to predict price direction?

Unlimited QE not sure sign meh?

**phantom_opera** · 24-09-12, 17:31

It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong

--- George Soros

**cnud** · 24-09-12, 17:32

Originally Posted by Ringo33

Its a no brainer that what goes up must come down or vice-verse, but the million dollar questions are when and by how much.

Manhatten got see down meh? Even during the height of the 2009...?

**minority** · 24-09-12, 17:34

Originally Posted by radha08

if interest rate go up whole market will collapse everybody will die...ruling party kena thrown out of power...so it wont happen...

Hard to say. We mirror us interest rates. So for now till 2015 seems safe. Thing is buyers must be mindful of their risk. No 1 to Blame if get burn. Like the YT guy. Die also must buy.

**minority** · 24-09-12, 17:36

Originally Posted by cnud

Manhatten got see down meh? Even during the height of the 2009...?

Got down abit 10-20% same for west coast San Francisco n Silicon Valley . These places recently went back up abit.

**Ringo33** · 24-09-12, 17:46

Originally Posted by minority

Got down abit 10-20% same for west coast San Francisco n Silicon Valley . These places recently went back up abit.

in US$ term. if you price it in gold, it will be worst.

**zzz1** · 24-09-12, 17:46

Originally Posted by Ringo33

Its a no brainer that what goes up must come down or vice-verse, but the million dollar questions are when and by how much.

Nope .. Is the question if u have the ball of steel to make that move..even the static and analysis tell is all time low...

**radha08** · 24-09-12, 18:25

singapore property market is the SAFEST in the world...it can be controlled by a few good men....

**imjason** · 24-09-12, 19:43

Originally Posted by phantom_opera

you see Laguna bought that 3br at 1.37m quantum (already vvip first 50)

consider median income of family at 14k including employer CPF ... also quite stretched liao

if can loan 80% means about 1.1m loan, if interest rate is at 2%, monthly payment will be 4k, if interest up to 3% monthly payment will be 4.5k, if interest rises to 5% (which is quite normal if FD is at 3%), monthly payment is 5.7k !!!

Unlikely for Laguna in this case, for him owning 2 properties and another one for his filial son... at least 20k or

**Ringo33** · 24-09-12, 19:48

Originally Posted by zzz1

Nope .. Is the question if u have the ball of steel to make that move..even the static and analysis tell is all time low...

If you have money to lose you don't need balls lah. Don't confuse investment with gambling.

Want to play balls try forex. More shiok.

**minority** · 24-09-12, 20:13

Originally Posted by Ringo33

in US$ term. if you price it in gold, it will be worst.

True but for actual US folks it still 10-20% and inflation barely 2%. The problem for many is at the 2008 time frame many banks refuse to loan. My friend in US has perfect credit record and have Cash. The bank still wont loan then.

**radha08** · 24-09-12, 20:14

Originally Posted by imjason

Unlikely for Laguna in this case, for him owning 2 properties and another one for his filial son... at least 20k or

no worries for him he is a seasoned and savvy investor...

....or what they call in the army lau chiau....old bird...

sh · 24-09-12, 20:24

Originally Posted by Ringo33

$450m of ABSD

Foreigners (10%)
$261m = $2610m worth of property with average unit value of $1.86m

Singaporeans & PR (3%)
$189m = $6,300m.

It looks like the 3% ABSD is not deterring Singaporeans and PR from buying their 3rd or 2nd property. sad to say one the sucker is me.

Me sucker too...

but bought when seller panic & prices came down by more than 3% because of the last CM... So cannot complain...

**Kanarazu** · 24-09-12, 21:23

Hear EU FTA may be signed end of year... Very high chance Europeans will be exempt from ABSD soon.

**imjason** · 24-09-12, 21:38

Originally Posted by radha08

no worries for him he is a seasoned and savvy investor...

....or what they call in the army lau chiau....old bird...

Will old bird kan cheong spider if correction >20% ?

Menu

Thread: Who is paying ABSD?

Thread Tools

Search Thread

Who is paying ABSD?

Similar Threads

Are you 'paying for air' when you buy a house?

Paying ABSD using CPF - need help pls

Paying ABSD

Paying for a shoebox

Paying Off Your Mortgage?

Posting Permissions