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Me and my wife are Singapore PR,
We have purchased one private property solely under my name and I am the sole borrower. The mortgage is not fully paid.

We are considering to buy a second private property in Sinagore,
ideally under the name of my wife to avoid the ABSD.
But my wife is a full time mom who do not have a job in Sinapore.

Can I be the borrower of the 2nd property? how can we avoid the ABSD?
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4 Answers

Hi,
You cannot take a loan for a property that is not in your name.
Cheers!

Elan Govan
MABA (Lancaster)
 90170747 
jayelan@gmail.com
www.goodpropertiesguide.com Read More
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  • BH
    what if i take 1% of the ownership of the 2nd property?
    can i get mortgage and how much ABSD is need to pay?
Hi Billy,
Thanks for getting back to me.

According to the latest measures by IRAS, all those who used 99-1 shareholding for 2nd or subsequent property purchase are being investigated for ABSD evasion. IRAS is saying that this kind of arrangement is illegal, as all buyers are expected to pay their legal share of owning their property. In your case, this could be 17% ABSD as you will be legally taking the loan and paying in full for it.

Honestly, 17% is still manageable since in the years to come, your 2nd property will definitely appreciate much more than that... if you buy in the right growth areas. So, why not buy in your name and pay the 17% and you have nothing to hide from IRAS.

Do contact me via whatsapp, wherein, I will assist you to buy in the right locations to maximise your returns. I specialise in investment properties all over SG. There are still bargains to be had!
Cheers!

Elan Govan
MABA (Lancaster)
 90170747 
jayelan@gmail.com
www.goodpropertiesguide.com Read More
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Hi,

If you have substantial cash on hand, you can use that to transfer and do a show funds under your spouse's name in order to obtain a home loan under her own name. If she also owns some financial assets, it can also be pledged to the bank for a lock in period. If above is possible we can still purchase under her sole name no issue.

May I have more info and requirements about your plans so as to make better recommendations? Thanks and look forward to value-add to your housing plans.

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Dear sir/mdm,

This will depend on the financial income of yourself and how you can plan out the portfolio. It will definitely involve stretching of finances, and can be quite tricky given existing interest rates of home loan. We may need to discuss more on the numbers to find out more about the potential of acquiring the 2nd property under your wife's name, through showing of funds or investments. More needs to be explored for this.

As government is clamping down on the 99-1 holding manner to avoid paying the ABSD, the consideration of such joint ownership will still incur the full ABSD of 25% (SPR buying 2nd residential property). Read More
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