How To Avoid ABSD Legally in Singapore

Are you still interested in purchasing that investment property? The Additional Buyers Stamp Duty (ABSD) may present the greatest obstacle to property investors in the United States. Even if you are able to afford it, the substantial stamp duty consumes a substantial portion of your potential returns, prompting many investors to seek opportunities abroad.

Investing in and owning multiple properties in Singapore has become more expensive due to the fact that ABSD is required in addition to the Buyer’s Stamp Duty (BSD). Therefore, it is unsurprising that the majority of consumers are interested in knowing how to buy 2nd property in Singapore without ABSD.

An alternative to paying ABSD for some investors is to buy an overseas property. Is there any way I can avoid paying ABSD legally for those who still want to purchase an additional property in Singapore? Allow us to investigate the following.

You need to pay ABSD in cash or CPF when you decide to upgrade from a HDB flat to a private property or when you buy another private home. If you sell your initial property within six months, you may be eligible for an ABSD remission.

There is no need to pay ABSD up front when you buy a new EC, though. Even though you still need to sell your house within six months of receiving the keys to your EC, you won’t have to pay the substantial ABSD fee up front.

There is nothing wrong with buying in the name of one spouse if you are buying as a couple and both of you are first-time property owners. When you both have saved enough, this gives the other spouse the freedom and flexibility to purchase another property in the future without incurring ABSD for the 2nd property.

The only issue with using this method is that the spouse would need to carry the burden of the mortgage alone and would need to have an adequate amount of cash and CPF funds to cover the downpayment and mortgage.

Why not embark on this expedition now that you have a clear understanding of How to buy 2nd property in Singapore without ABSD? While it may be alluring to buy an investment property, it is important to keep in mind that purchasing a property is a significant financial commitment. This is the reason why it is important to carry it with the appropriate weight in order to prevent any errors.