Additional Buyer’s Stamp Duty (ABSD) is arguably one of the biggest concerns for property investors, and many are often looking at how to buy 2nd property in Singapore without ABSD. Effectively 27 April 2023, the government announced new property cooling measures, which raised the ABSD rates; most significantly, the ABSD rate for foreigners increased from 30% to 60%.
What this simply means is that investing and owning multiple properties in Singapore is more expensive at the moment. Thus, it’s no longer surprising to see most homeowners trying to learn How to buy 2nd property in Singapore without ABSD.
For some investors, buying an overseas property is an alternative to avoid paying ABSD. For others who are still looking to buy an additional property in Singapore, you may be wondering, ‘what goes into How to buy 2nd property in Singapore without ABSD?’ Let’s find out below:
Buying Under One Owner’s Name
When purchasing property as a couple and both of you are first-time property owners, then you can buy under one spouse. This helps give the other spouse the freedom and flexibility to purchase another property in the future without incurring ABSD for 2nd property when you both have saved enough.
The downside to taking this approach is that the spouse would need to bear the weight of the mortgage single-handedly, and must have enough cash and CPF funds for the downpayment and mortgage.
Buying a Dual-Key Unit
With dual-key units, you’re simply buying a property with two units side by side, but for the price of one. Since it is regarded as one property, you avoid making do with ABSD for your 2nd property. The main unit and sub-unit share a common foyer but have their own living space. Depending on the unit’s design, each unit may have its living area and common facilities.
In this regard, dual-key units appeal perfectly to both home buyers and investors alike since you can rent out the sub-unit and still maintain your privacy. But going with the uniqueness accredited to dual-key units, they tend to come with a higher price per square foot and can cost up to 25% more.
Now that you have an insight into How to buy 2nd property in Singapore without ABSD, why not consider giving it a try? Only then can you enjoy money-saving benefits when purchasing a second property in Singapore.
