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Thread: New Rules to Cool Property Market

  1. #1
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    Default New Rules to Cool Property Market

    The Government announced today the following measures to maintain a stable and sustainable property market:

    a) Increase the holding period for imposition of Seller’s Stamp Duty from the current one year to three years (imposed on pro-rata).

    b) For property buyers who already have one or more outstanding housing loans at the time of the new housing purchase:
    i. Increase the minimum cash payment from 5% to 10% of the valuation limit2; and
    ii. Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers from the current 80% to 70%.

    The measures will take immediate effect on 30 August 2010.

    Read fulll MAS release here: http://www.mas.gov.sg/news_room/pres...ty_Market.html

  2. #2
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    wow.... means those tat bt earlier... subject to the 3 yrs cap ?

  3. #3
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    3 years SSD is for purchase made today and thereafter.

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    Extending the Holding Period for Imposition of Seller’s Stamp Duty (SSD) on Residential Properties Sold from 1 Year to 3 Years4 The Government imposed in February 2010 a seller’s stamp duty (SSD) for sellers who buy residential properties3 on or after 20 February 2010 and sell them within a year of purchase.
    5 For residential properties bought4 on or after 30 August 2010, SSD will be imposed if these properties are sold within three years of purchase. Specifically, the SSD levied on residential properties will be revised to as follows:
    a) Sold within the first year of purchase, i.e. the property is held for 1 year or less from its purchase date – The full SSD rate (1% for the first $180,000 of the consideration, 2% for the next $180,000, and 3% for the balance) will be imposed.
    b) Sold within the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.
    c) Sold within the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.
    No SSD will be payable by the vendor if the property is sold more than 3 years after it was bought. Please see Annex for examples of how the SSD will be computed.
    6 The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is at least 3 years.
    7 IRAS will be releasing an updated e-tax guide on the circumstances under which SSD will apply and the procedures for paying SSD. The e-tax guide will be available at www.iras.gov.sg. Taxpayers with enquiries may call IRAS at 6351 3697 or 6351 3698.

  5. #5
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    afterall, the govn will always want a share of where the $$ is... stamp duty! by decreasing bank loan, they lose out on tax, so get it from somewhere else.. how smart...




    Quote Originally Posted by smallant
    Extending the Holding Period for Imposition of Seller’s Stamp Duty (SSD) on Residential Properties Sold from 1 Year to 3 Years4 The Government imposed in February 2010 a seller’s stamp duty (SSD) for sellers who buy residential properties3 on or after 20 February 2010 and sell them within a year of purchase.
    5 For residential properties bought4 on or after 30 August 2010, SSD will be imposed if these properties are sold within three years of purchase. Specifically, the SSD levied on residential properties will be revised to as follows:
    a) Sold within the first year of purchase, i.e. the property is held for 1 year or less from its purchase date – The full SSD rate (1% for the first $180,000 of the consideration, 2% for the next $180,000, and 3% for the balance) will be imposed.
    b) Sold within the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.
    c) Sold within the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.
    No SSD will be payable by the vendor if the property is sold more than 3 years after it was bought. Please see Annex for examples of how the SSD will be computed.
    6 The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is at least 3 years.
    7 IRAS will be releasing an updated e-tax guide on the circumstances under which SSD will apply and the procedures for paying SSD. The e-tax guide will be available at www.iras.gov.sg. Taxpayers with enquiries may call IRAS at 6351 3697 or 6351 3698.

  6. #6
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    If the 70% loan ratio is applicable to HDB upgraders who already has an outstanding loan with HDB, it will be killer measures .... developers must be swearing now

    1 Financial institutions are required to conduct checks with HDB and with one or more credit bureaus on whether the buyer has an outstanding housing loan at the time of applying for a housing loan for the new property purchase. For joint buyers, if either buyer has an outstanding housing loan, the joint buyers will be considered as having an outstanding housing loan.

  7. #7
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    Quote Originally Posted by smallant
    wow.... means those tat bt earlier... subject to the 3 yrs cap ?
    This should only apply to those whose OTP is dated 30 Au 2010 onwards... those who bought earlier just kanna the 1 yr SSD.

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    Does the new measures of minimum cash payment and LTV apply to those with intention to sell their current home (own stayed) to buy a new property (also for own stay)?

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    my understanding from the press release is that it does.

    Quote Originally Posted by Bangquan
    Does the new measures of minimum cash payment and LTV apply to those with intention to sell their current home (own stayed) to buy a new property (also for own stay)?

  10. #10
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    Unless one has a fully paid up home.
    Quote Originally Posted by bargain hunter
    my understanding from the press release is that it does.

  11. #11
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    Commercial property may become more popular now.

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    I hope they will not overdo the cooling with these measures. Outlook for 2011 does not seems too good already....

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    HUAT AH!!!!!















    says the govt ~

  14. #14
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    Default Selling hdb to buy pte = 2 outstanding loans at point of loan application?

    So this means if I were to buy a private property and sell my hdb flat after that, i would be considered by banks as taking 2nd loan at point of loan application and subject to max 70% LTV for my pte property loan?

    Wah like this everyone who wants to upgrade from hdb to pte must sell before they buy pte? So in the meantime after selling their hdb, and before buying pte, must stay hotel la?

  15. #15
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    So what's likely to happen to those who have multiple properties waiting to flip? Seems like the demand will cool off interest, think they may end up doing back flip themselves if they dont have mean to hold up to 3 years

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    can anyone clarify if a bridging loan is possible for the scenario below? that is my interpretation from the press release too but does not seem logical.



    Quote Originally Posted by dlky73
    So this means if I were to buy a private property and sell my hdb flat after that, i would be considered by banks as taking 2nd loan at point of loan application and subject to max 70% LTV for my pte property loan?

    Wah like this everyone who wants to upgrade from hdb to pte must sell before they buy pte? So in the meantime after selling their hdb, and before buying pte, must stay hotel la?

  17. #17
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    Quote Originally Posted by dlky73
    So this means if I were to buy a private property and sell my hdb flat after that, i would be considered by banks as taking 2nd loan at point of loan application and subject to max 70% LTV for my pte property loan?

    Wah like this everyone who wants to upgrade from hdb to pte must sell before they buy pte? So in the meantime after selling their hdb, and before buying pte, must stay hotel la?
    Thats what they want. Only those cash rich people can afford 2nd or more property. This will most likely extinguish the heat completely. Or the surge in demand of MM units because of their low quantum.

  18. #18
    teddybear's Avatar
    teddybear is offline Global recession is coming....
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    So does having a HDB loan considered as already having a first housing loan? If it does, this will affect the mass market properties badly. No wonder developers so hurriedly pushing out their mass market properties. They are expecting that? High-end private property market not really affected by such measures.

    Quote Originally Posted by jitkiat
    If the 70% loan ratio is applicable to HDB upgraders who already has an outstanding loan with HDB, it will be killer measures .... developers must be swearing now

    1 Financial institutions are required to conduct checks with HDB and with one or more credit bureaus on whether the buyer has an outstanding housing loan at the time of applying for a housing loan for the new property purchase. For joint buyers, if either buyer has an outstanding housing loan, the joint buyers will be considered as having an outstanding housing loan.

  19. #19
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    there goes mass market.

    2011 will be an interesting year

  20. #20
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    yes, if they still have hdb or bank loan. if fully paid up then no issue.

    Quote Originally Posted by teddybear
    So does having a HDB loan considered as already having a first housing loan? If it does, this will affect the mass market properties badly. No wonder developers so hurriedly pushing out their mass market properties. They are expecting that? High-end private property market not really affected by such measures.

  21. #21
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    Quote Originally Posted by dlky73
    So this means if I were to buy a private property and sell my hdb flat after that, i would be considered by banks as taking 2nd loan at point of loan application and subject to max 70% LTV for my pte property loan?

    Wah like this everyone who wants to upgrade from hdb to pte must sell before they buy pte? So in the meantime after selling their hdb, and before buying pte, must stay hotel la?
    Yes seems like it ~

  22. #22
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    Quote Originally Posted by azeoprop
    Thats what they want. Only those cash rich people can afford 2nd or more property. This will most likely extinguish the heat completely. Or the surge in demand of MM units because of their low quantum.
    I say good riddance to MM units ~

  23. #23
    xebay11 is offline New Launch Project Specialist
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    Quote Originally Posted by august
    I say good riddance to MM units ~
    Why? Don't like, don't buy.

    MM units are good as it helps to segmentize the market, so if you are non-MM unit owner, your large unit will become scarce as more MM units come to the market.

  24. #24
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    New launches will be greatly affected...HDB Upgraders will not rush down anymore...haha...

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    Quote Originally Posted by xebay11
    Why? Don't like, don't buy.

    MM units are good as it helps to segmentize the market, so if you are non-MM unit owner, your large unit will become scarce as more MM units come to the market.
    i dun own any MM units, but u see i am concerned about the kind of crowd and tenants that MM units will bring to the existing locale and surrounding ~

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    I see that the new measures will create a shocking drop in resale transactions.
    Hannah

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    Private owners who have just bought resale HDB flats have to sell their private property within 6 months. Wow! There will be fire sales of private property in the next few months.

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    Quote Originally Posted by DC33_2008
    Private owners who have just bought resale HDB flats have to sell their private property within 6 months. Wow! There will be fire sales of private property in the next few months.
    aiyo, the new rules is from today lah
    if u bought a resale HDB ytd u wont be affected

  29. #29
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    strange that everyone is not thinking right. sg style has always been WITH EFFECT FROM TODAY. like that then show they are consistent with policy mah.

    Quote Originally Posted by august
    aiyo, the new rules is from today lah
    if u bought a resale HDB ytd u wont be affected

  30. #30
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    You guys Wait Long Long for property price to collapse. The garment will not allow the property to collapse as it will affect the banking sector . The worse case scenario is 0% growth for the next 12 months before the market goes up again as more people earns more money and the effect of IR and new MRT stations affect the market again.

    The garment want Long Term growth. The property market will only collapse if there is major crisis like SAR and SEP 11.

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