In the sign of residential and industrial property are getting extremely ‘hot’, the government has announced the 7th round of property cooling measure since 2009 and takes effect from 12 January 2013.
Key Changes are as follows:
- Additional Buyer’s Stamp Duty (ABSD) will be raised between five and seven percentage points across the board. To be imposed on PRs purchasing their first residential property and on Singaporeans purchasing their second property. The Government said the ABSD measures are significant but temporary and will be reviewed in future depending on market conditions.
- Individuals obtaining a second housing loan, the LTV limits will be lowered to 50 per cent, or 30 per cent if the loan tenure exceeds 30 years. For individuals obtaining third or subsequent housing loans, LTV will be 40 per cent or 20 per cent if tenure exceeds 30 years. For non-individual borrowers, LTV will be lowered to 20 per cent, from 40 per cent before.
- Minimum cash down payment for individuals who are applying for a second or subsequent housing loan will also be raised from 10 per cent to 25 per cent.
- PRs who own HDB flats will be disallowed for subletting their whole flat
- Max strata floor area for new EC units to be capped to 160 sq m
- Sales of new dual-key EC units will be restricted to multi-generational families only.
- New sellers stamp duty for industrial property of between 5 per cent and 15 per cent, depending on when it is sold (15% if sold in 1st year of puchase, 10% in 2nd year, and 5% in 3rd year).
Find Out HOW does the latest cooling measure affects your property portfolio!
Is there another property sector that has not been affected by the cooling measure?
Is it still possible to get LTV of up to 80%?
Can I still invest in property?
Which should you invest in?
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