Are you keen to expand your property portfolio in Singapore, but you are apprehensive about the substantial Additional Buyer’s Stamp Duty (ABSD)? There is no need for concern, as you are merely one of a multitude of individuals. Numerous potential residents and investors in Singapore are actively seeking properties to avoid this tax while simultaneously maintaining ownership of a second property and other properties in a way that is advantageous to both parties.
This uncomplicated guide explains how to buy 2nd property in Singapore without ABSD while remaining legally compliant. We will now proceed.
Purchase your first property in the name of only one spouse. An extraordinary idea is How to Buy a 2nd Home in Singapore Without ABSD. Despite the fact that the other spouse previously resided in the first property, the implication of this is that they will be deemed a first-time buyer when they purchase their subsequent property.
Consequently, how can you achieve this without succumbing to the heat? Checking the title deed to ensure that only one spouse is listed as the proprietor is your responsibility. Despite the fact that they may be designated as an essential occupier, the other spouse is ineligible to be listed as a co-owner. Please be advised that this requirement is only applicable to petitioners for HDB units and is not mandatory for individuals interested in private properties.
Establishing a property trust in your child’s name is a unique way to prepare for their future and potentially prevent ABSD. This approach entails the procurement of a property and its subsequent transfer to a trust in which your child is the beneficiary. However, in order to advance, it is imperative to be cognizant of the most recent regulations and requirements.
Either way, you will have to pay cash to buy the property in trust, as banks typically do not offer loans for properties held in trust, especially when the beneficiary is a minor. Additionally, it is essential to engage the services of a seasoned conveyancing law firm to guarantee that the trust documents are drafted with the uttermost care and attention to detail. Failure to satisfy the ABSD refund’s specific requirements through the trust deed may result in substantial financial losses.
Do not enable the desire to circumvent ABSD to have a complete impact on your property investment decisions. When assessing each opportunity, it is crucial to take into account your long-term objectives, potential advantages, and expenses. We trust that the aforementioned recommendations on How to Purchase a 2nd Property in Singapore Without ABSD will serve as a reliable starting point for your search.
