Your search results

De-coupling: Does De-coupling obtain ABSD savings all the time ?

Background: Why are people going for De-coupling now ?

– Government announced on 5th July 2018 on adjustment to the Additional Buyer’s Stamp Duty (ABSD) rates and Loan-To-Value (LTV) limits on residential property purchasers, to cool the property market and keep price increase in line with economic fundamentals

– As a result, with the exception of first time property purchasers who are Singapore Citizens (SC) and Singapore Permanent Residences (SPR), there was an increase of 5% additional stamp duty for other property purchasers.

– De-coupling is done to enable the outgoing owner to buy another property without having to pay Additional Buyer’s Stamp Duty (ABSD) on the new purchase

– In order to de-couple the ownership in the residential property, they would either have to be transferred by way of Sale or Gift of part share in the property

– In this respect, he or she can buy a new private property without paying ABSD for what is a second property owned by the couple

Without De-coupling

With De-coupling

Book your appointment for a free consultation on de-coupling process now !

Book an appointment with Clement Ying (+65)97837903 or drop an e-mail to clementying.huttons@gmail.com for registration now !

Decoupling for HDB flats

– Typically not allowed

– Flat owners will be allowed to transfer the ownership of their flats under six circumstances including marriage, divorce, death of an owner, financial hardship, renunciation of citizenship and medical reasons. All other reasons will be assessed by HDB on a case by case basis.

Decoupling for Private Property – By Gift

(Property ownership is transferred to the other party without any monetary considerations (ie The part owner gives his share away without expecting any money in return)

Things to note for transferring property by way of gift

–Can only be done if the property is fully paid (ie no more mortgage loan)

–CPF + accrued interest of the exiting party has to be refunded

–Buyer stamp duty is still payable based on the market value of the property share

–Seller Stamp Duty (SSD) still applies if it is done within 3 years of the purchase of the property

–ABSD still applies to PRs and Foreigners

Implications of transferring property by way of gift

–Negative implications when selling property

–Affected by the Bankruptcy Act for the first five years and banks may refuse to provide loans for properties which has been given away by Way of Gift even though it has been more than five years

Decoupling for Private Property – By Part Purchase

Selling of shares owned by 2 individuals to one of them. (Objective is to free one party to purchase another investment property as a first timer, with 75% loan and no ABSD for Singapore Citizens)

Things to note for transferring property by part purchase

–Normal fees and charges involving a sales transaction are applicable, ie 25% downpayment (of which 5% must be in cash), legal fees, buyer stamp duty, mortgage stamping fee will be applicable

–As it is similar to purchase and sale of a property, legally, this has to be done by 2 separate law firms

–If fractional sale is done within 3 years from date of original purchase date, purchaser still need to pay Seller’s Stamp Duty

–Duration of this process can be immediate or up to 16 weeks depending on whether there is existing bank loan, obtained Bank In-Principle Approval, CPF Refund etc

–Recommended to de-couple before placing an option on a property you need to purchase

–“Buyer” has to finance the balance mortgage himself/ herself by obtaining a bank loan based on income and if there are outstanding bank loan on existing property

–May have penalty fee imposed by existing bank if the loan is refinanced over to another bank during the lock-in period

Scenario 1: SC – SC De-coupling and its implications on ABSD payable

Scenario 2: SC – SPR De-coupling and its implications on ABSD payable

Undecided on what type of de-coupling method, book your appointment for a free consultation on de-coupling process now !

Book an appointment with Clement Ying (+65)97837903 or drop an e-mail to clementying.huttons@gmail.com for registration now !

For SC-SC Couples, does Decoupling obtain ABSD savings all the time ?

a) Existing Condo Value = $1.5’M, New Condo Value = $800,000

b) Existing Condo Value = $1.5’M, New Condo Value = $600,000

c) Existing Condo Value = $7.5’M, New Condo Value = $600,000

For SC-SPR Couples, does Decoupling obtain ABSD savings all the time ?

a) Existing Condo Value = $1.5’M, New Condo Value = $800,000

b) Existing Condo Value = $1.5’M, New Condo Value = $600,000

c) Existing Condo Value = $7.5’M, New Condo Value = $600,000

How about SC – Foreigner or SPR – Foreigner Couple ?

Still undecided on what kind of de-coupling to do, book your appointment for a free consultation on de-coupling process now !

Book an appointment with Clement Ying (+65)97837903 or drop an e-mail to clementying.huttons@gmail.com for registration now !

State/County:
Country: Singapore
Property Id : 12369
Rooms: 1
Bedrooms: 1
Bathrooms: 1
My details

Clement Ying

Associate Marketing Consultant (R058732C)

Contact Me

Compare properties

Similar Listings

New launch

Hougang Condo | Singapore | District 19 | Si...

Existing condo in District 19 Hougang, Punggol, Sengkang & Serangoon. Riverfront Residences, Parc Botannia, Affinit [more]
Existing condo in District 19 Hougang, Punggol, Sengkang & Serangoon. Riverfront Residences, Parc Botannia, Affinit [more]
New launch

Seletar Condo | Singapore | District 28 | Si...

Existing condo in District 19 Hougang, Punggol, Sengkang & Serangoon. Riverfront Residences, Parc Botannia, Affinit [more]
Existing condo in District 19 Hougang, Punggol, Sengkang & Serangoon. Riverfront Residences, Parc Botannia, Affinit [more]
New launch

Sengkang Condo | Singapore | District 19 | S...

Existing condo in District 19 Hougang, Punggol, Sengkang & Serangoon. Riverfront Residences, Parc Botannia, Affinit [more]
Existing condo in District 19 Hougang, Punggol, Sengkang & Serangoon. Riverfront Residences, Parc Botannia, Affinit [more]
Register here to find out more about this project today !!! Brochures, floorplans, prices, availability of units, showflat location upon request
Fill up the necessary portions to get a free consultation and presentation of available units NOW !
error: Content is protected !!