Hi LLP,
Eligibility to buy
There is no restriction for buying property under LLP. If it is a residential property, then you will have to pay 10% ABSD (Additional Buyer Stamp Duty). If it is a commercial property, there is no ABSD involved.
Loan
If the loan is taken by a LLP, the loan is usually lower, up to 70%. An individual buying his/her first property can usually borrown up to 80% of the purchase price.
If the loan is taken by a LLP, the interest rate is higher, as the banks will be charging commercial interest rates, instead of the individual borrower's interest rates.
Pros & Cons
The pros of buying properties under LLP is that it offers some tax and GST relief, especially if buying commercial properties. It also allows very flexible managing of properties, transferring of ownership, buying and selling properties without affecting individual's eligibility to buy HDB.
The cons are as mentioned, the ABSD when buying residential property, and loan amount/interest rate is less favourable.
Thanks!
Richard Wan
Propnex Realty
R002212A
richardwan@live.com
92229344
My Websites
http://www.hillviewpeak.com (New Condo at Hillview MRT)
http://Forestville-EC.com.sg (New EC at Woodlands)
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