Buying in Singapore: budget beyond the price, including ABSD

Hello everyone. Today let's discuss a question many parents ask: can a child under 21 buy property in Singapore, how does it work, and what are the taxes? ⸻ 1️⃣ Eligibility • US citizens under 21 cannot independently sign a purchase contract. They need: 1. A parent / guardian to sign on their behalf 2. Or a purchase through a trust • Property they can buy: a private condominium • Other types, such as HDB flats, are not allowed 💡 Possible approaches: • Parents holding on their behalf or buying through a trust • Waiting until the child turns 21 to buy independently ⸻ 2️⃣ Purchase costs and taxes • Buyer's Stamp Duty (BSD): tiered rates of 3%–6% based on the property price • Additional Buyer's Stamp Duty (ABSD): 65% for a trust purchase, payable in cash and refundable • Funding: entirely in cash; a property under construction can be paid for progressively • Legal fees: around S$8,000–10,000 💰 Ways to ease funding pressure • Choose a new development under construction and pay in instalments • Use an ABSD refund for subsequent instalments 💡 The purpose of a trust purchase • Secure a quality property early • Provide for the child's future home or investment • Safer succession planning and separation of risks ⸻ 3️⃣ How the trust works • Trustee's duties: manage the property, let it out, collect rent and maintain it • Rental income belongs to the child, the beneficiary • Transfer: the trust deed can provide for transfer when the child turns 21 or meets specified conditions • Sale restrictions: at least two trustees must agree; a holding period of at least three years is recommended ⸻ 4️⃣ Taxes on rental property held in trust Property Tax: progressive non-owner-occupied residential rates Annual Value (AV) Rental Income Tax: • The trustee files the return, deducting property tax, repairs, management fees, commissions and similar costs • Progressive individual income-tax rates, up to 24% • If distributed to the child, the child pays at their personal rate 💡 GST: generally not payable on residential rent ⸻ 5️⃣ Purchase taxes and refunds • At purchase: BSD + ABSD • ABSD refund: an application can be made if the child later meets the conditions • Processing: a decision within two months after complete documents are submitted, followed by the refund within one month 💡 Summary: For a child under 21, a trust is the most dependable way to buy a home. It can secure a good property early, help plan taxes and protect assets. 📩 If your child is considering an early investment in Singapore property, message me for a complete analysis of the options! #新加坡房产 #外国人买房攻略 #新加坡新盘公寓

US passport = local buyer? A must-read for US citizens buying in Singapore! Did you know a US passport gives homebuyers advantages over other foreigners in Singapore? You can freely buy condominiums and may even avoid Additional Buyer's Stamp Duty (ABSD). Here are the details 👇 ✅ Guide for US citizens 🏙 Private condominiums ✔ Purchase freely, without government approval ✔ No ABSD on the first home, saving a substantial amount of purchase tax! 🏡 Landed property ❌ Foreigners generally cannot buy, but... ✔ Sentosa Cove is an exception! US citizens can buy directly! 🏠 HDB flats ❌ Cannot buy directly, unless a spouse is a Singapore citizen 💰 Additional Buyer's Stamp Duty (ABSD) 📢 A major benefit: a US passport holder's first home has 0% ABSD! Other foreigners pay 60% 💸 ✔ Second and subsequent homes: 20% ABSD, still below other foreigners' 60% 🏦 Mortgages ✔ Loans of 55%–75% may be available, depending on income / assets ✔ Overseas income, tax returns or local asset documents are required 📌 So, does a US passport mean local-buyer treatment? ✅ Investment or your own home, with very low purchase costs! ✅ Sentosa Cove: the only landed property option! ✅ Condominiums: local-buyer treatment, without ABSD! 👉 Planning to buy? Message me for help analysing your budget and choosing a home!