Additional Buyer’s Stamp Duty (ABSD) is arguably one of the most significant concerns for property investors, and many frequently inquire about how to buy 2nd property in Singapore without ABSD. Effective 27 April 2023, the government announced new property cooling measures, including increases in ABSD rates; most notably, the ABSD rate for immigrants was raised from 30% to 60%.
This indicates that the cost of investing in and owning multiple properties in Singapore is currently higher. Thus, it is no longer surprising to observe that most homeowners seek to learn how to buy a 2nd property in Singapore without ABSD.
A different way to avoid paying ABSD is for some investors to buy an overseas property. You may be wondering, “How to buy 2nd property in Singapore without ABSD?” if you are one of the many people who are still seeking to buy an additional property in Singapore. Let us explore the following:
When purchasing property as a married couple and both of you are first-time property owners, it is permissible to buy under the name of one spouse. When you both have accumulated enough money, this gives the other spouse the freedom and flexibility to buy another property in the future without incurring ABSD for a 2nd property.
The disadvantage of using this strategy is that the spouse would be required to assume sole responsibility for the mortgage and would need sufficient cash and CPF funds for the down payment and mortgage payments.
Simply put, when you buy a property with dual-key units, you’re getting two units for the price of one. You avoid using ABSD for your 2nd property because it is considered a single property. The principal unit and the subordinate unit share a common foyer, but each possesses its own designated living area. Depending on the unit’s design, each unit may include its own living space and shared amenities.
Because you can rent out the sub-unit while maintaining your privacy, dual-key units are highly appealing to both homeowners and investors. However, given the exclusivity of dual-key units, they generally command a higher price per square foot and can be up to 25% more expensive.
Now that you understand how to buy a 2nd property in Singapore without ABSD, why not give it a try? Only then will you be able to take advantage of the financial benefits of acquiring a second property in Singapore.