The Additional Buyer’s Stamp Duty (ABSD) of up to 15 per cent is perfect for the purchase of investment properties and serves as a housing taxes for foreigners. Meant to reduce the “investment viability” of properties and give owner-occupiers a higher possibility of buying a home, buying a second property became a more costly affair due to it.
Prior to the cooling measures were released, mass-market properties primarily catered to HDB upgraders and first-time home buyers, whilst higher-end properties were more for higher-income earners, investors and expatriates.
The ABSD made the 2nd group consider mass-market properties, pushing up prices in this market.
The rising Singapore interbank provided rate (Sibor), which is used to price mortgage loans, could harm livelihoods, as mortgage payments rise in tandem with it.
Typically, if mortgage payments start becoming too high, owners would peddle off the building and/or limit, to reduce debts exposure and reallocate information.
With the lack of liquidity in the marketplace, this will often be difficult.
The house or property auction marketplace is also noticed that you get uncomfortably active. In 2009, mortgagee profits – any time a bank leaves a property on with auction immediately after its owner defaults for servicing home loan — almost increased twofold the former year’s body (“More homes go on the block in the course of market turmoil”; Feb 19).
Together with the dreary economic future and inadequate equities current market, if we blindly stick to the state of affairs, we are a number of a uncertain year in front.