An ABSD poser, deals on the go and a tough season ahead

IF YOU are reading this newsletter, then you would likely agree that holding property for investment is a tried and true strategy for generating income and preserving capital.

But higher ABSD and tighter loan limits have thrown a spanner in the works for those eyeing Singapore residential property for their portfolios or retirement plans. The government’s fix for the rapid rise in prices entails sharply higher transaction costs that erases potential gains.

A Singaporean couple looking to jointly own two properties faces 20 per cent additional buyer’s stamp duty on the second property (and 30 per cent on subsequent buys). This is a position they can possibly avoid, by “decoupling” and buying the properties under separate names. Leslie Yee makes a case for lifting the ABSD on joint purchases of two homes, and yes, preserving marital harmony is one factor.