Property Assets

I am sharing some information regarding about one very important investment tool or asset to us, which is property. Although I am not a property agent, however one crucial point in financial Planning will be property which is an important assets in Ones' life.

Recently Government have imposed quite a number of measures to the property. To people who dont keep track of news, these are some important stuff which you need to take note. For 1st timers Singaporean buyer who are buying HDB flats from HDB board itself wont be affect by these colling measures.

To promote a more stable and sustainable market, the government has issued an additional buyer’s stamp duty (ABSD) on the sale of private residential property with effective on 8th Dec onwards.

An ABSD of 10 per cent of the purchase price or market value of the property — whichever is higher — is applicable to foreign buyers and corporate entities, while permanent residents (PRs) buying their second and subsequent properties will face an ABSD of three per cent. An ABSD of three per cent is only applicable to Singaporeans who are purchasing their third or subsequent properties.

For joint purchases, say between a Singaporean and a PR, or a PR and a foreigner, the higher rate will apply.However, the government will provide reliefs in certain cases, such as when a Singaporean marries a PR or foreigner, so that this move does not impact home occupation demand by residents, said the ministries.

The existing Buyer’s Stamp Duty on property purchases applies at one per cent on the first $180,000 of the purchase price or market value of the property (whichever is higher), two per cent on the next $180,000 and three per cent for the remainder.

Points to take note for People who are looking for their 1st Property, do try to get a HDB flats as your 1st property as Newly wed couples (especially young couples) do not tied down yourself with Highly Maintenance Loan. Cos if after paying the housing Loan, you might not have suffficient money left for emergency needs.

And also dont forget to get yourself a Mortgage insurance to protect in the event of Mishap, the Loan will be paid by the insurance. For me, when both my hubby and I bought a HDB flats, we didnt take up the HPS from the HDB. Instead we used our own personal life insurance as a mortgage insurance. If you decide to use your personal insurance as a Mortgage Insurance too? Do take note that the amount of your sum assured will be sufficient. The reason why I didnt took up a HPS (even though it was very cheap premium), was because if in the future I wans to buy another property, I might need to buy a new Mortgage insurance with a higher premium as compare to now due to Age differs.

Hopefully whatever I share might make some sense to property buyer. And if you wish to find out more regarding about Mortgage Insurance or HPS do drop me an email via dondon_v@yahoo.com