A property trust to beat ABSD? Beware the drawbacks

Singapore

FACED with more prohibitive stamp duties on second and subsequent purchases of residential property, some Singaporeans are exploring a trust vehicle to circumvent the latest cooling measures.

While the potential savings may be a lure, lawyers say the restrictive characteristics of such trusts may prove a dampener.

In July, the government announced adjustments which saw higher additional buyer's stamp duty (ABSD) and tighter loan-to-value (LTV) limits on residential property purchases.

For Singaporeans buying their first residential property, there remains no ABS…