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Owns a 4-Room HDB flat (no loan) ,which is within the 5 years MOP period. Can I buy a condo by incorporating a company with my name and rent it to myself? If yes, what is the expected loan interest rate for company to buy residential property?
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2 Answers

Hi,

Using a company to purchase condo, the ABSD liable is 15% + another 3% stamp duties, and max loan is 20% of purchase price. It will not be advisable to do so as the capital commitments are too high to justify the purchase.

I guess the best option would be to wait out the MOP before purchasing another residential, or alternatively, you can consider commercial property. Thanks and hope to discuss further.

Warm regards
Ivan ERA
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Hi,

Using a company name will make you liable for ABSD and pose challenges for loan. I suggest to wait out for your MOP period and commit. Otherwise, if you are looking from an investment point of view and wish to leverage on the weak market to earn greater rate of reruns and rental yield, you should consider commercial properties instead. From Retail to Grade A strata titled offices in Prime City Centre- I have experience and knowledge in dealing with investments and expansion of my clients portfolio.

Let's get in touch at +65 96659926  for me to understand your requirements, expectations and objectives. Following that, I will work out the financial calculations cash flow and breakdown of purchase with progressive payment to see which options you can consider.

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D Kumar
 +65 96659926 
ERA Associate Division Director
www.kumarrai.com

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