aboutfinancialplanning.net

More cooling measure is being introduced to stabilize the property market in Singapore!

From 8 December 2011, Additional Buyer’s Stamp Duty (ABSD) of the purchase price or the market value of the property, whichever is higher, will apply to the following categories of residential property purchases:

• Foreigners and non-individuals (corporate entities) buying any residential property will pay an ABSD of 10%;
• Permanent Residents (PRs) owning one and buying the second and subsequent residential property will pay an ABSD of 3%; and
• Singaporeans owning two and buying the third and subsequent residential property will pay an ABSD of 3%.

This is on top of the current Buyer’s Stamp Duty of 1% of the first $180,000, 2% of the next $180,000 and 3% of the remainder property price.
As long as options are granted on or before 7 Dec 2011 and exercised within 3 weeks (i.e. on or before 28 Dec 2011) or the option validity period, whichever is the earlier, this ABSD will not apply.

This additional ruling will plug the remaining holes in the rising property prices. Foreigners buying actively into Singapore Property Market, Singapore Citizens and PRs register a company to buy property to avoid the Seller’s Stamp Duty, and others who are cash rich in buying 3 or more residential properties.

The Straits Times, dated 22 November 2011, just published the following 3 changes to the CPF Act.

CPF Top-up
Previously, CPF members could only contribute to their own accounts or those of family members. Employers could also contribute to the accounts of employees. Now, voluntary contributions to a member's account can be made by any person, company or association.

Reversal of CPF SA Transfer
Previously, once the CPF OA money is transferred to CPF SA account, it is irreversible. Now, they can be reversed under special circumstances. For instance, a CPF member who suffers unforeseen financial hardship after the transfer may need the transferred savings to service his housing instalments. The amendment allows CPFB to make exceptions and allows transfers to be reversed in such cases.

Portability of Home Protection Scheme (HPS)
Previously, HPS is not portable. That is to say, if a CPF member sells away current HDB flat and buy a new flat, the old HPS will be terminated. CPF member will then need to apply for new HPS cover, subject to health underwriting. This is not desirable as member's health condition may not be good then. Now, CPFB is able to waive the requirement of good health for members who were insured under HPS for their previous flat.