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askguru expert
Hi,

Thanks for writing to us on AskGuru.

Property investment remains one of the favourite investment methods for many Singaporeans as you can invest long-term without worrying about short-term fluctuations. However, with the implementation of cooling measures, purchasing property has become more expensive than before.

You have to take into account the added costs of the restrictions and cooling measures. These include things such as the Additional Buyers’ Stamp Duties (ABSD), and Total Debt Servicing Ratio (TDSR). For example, Singapore citizens purchasing a second property have to pay an ABSD of 12%, and an ABSD of 15% for their third and subsequent property. Also, under the TDSR framework, the sum of an individual’s loan repayments (housing loans, credit card debt etc.) cannot exceed 60% of income.

Fortunately, there are more ways to invest other than the buy-and-sell route, which requires waiting for an increase in property value. In Singapore, a high rental yield can net you a decent sum of passive income through rent alone. This allows you to reap a profit while still mitigating the tax costs.

Learn more about property investment in Singapore: https://www.propertyguru.com.sg/property-guides/learn-about-property-investment-in-singapore-18436

Hope this answers your question.

Best Regards,
Team PropertyGuru Read More

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