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Good evening Sir,

I had advised and assisted clients in building property portfolio using tenancy in common and part share (decoupling).

You are able to utilise as much cpf oa funds as possible as long as you are one of the legal owners. But do take note if you sell your 1% ownership to your wife in few years time, you will only get back the 1% value of the property rather than the "20%" as per said.

Secondly, you will be eligible for ABSD remission as long as you guys are married and buying your matrimonial home with at least one of you as SC. IRAS look at the composition not the ownership percentage.

If its legitimate that you guys have the intention to build up your property portfolio over the next few years but dont have the means to do so now, IRAS most likely will not request for clawback.

Hope my sharing aids in clearing your doubts.

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Hi
Yes you are able to use your CPF to make up the 20% and
yes, as a married couple you are eligible to apply for ABSD remission with your current status.
Yes, you are able to decouple without that worry for now.
Do contact me at 97979020  0 to discuss more and assist you in your asset planning.

Mark, your RIGHT choice
Propnex Read More

Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Hope to hear from you soon and have a great week ahead. By the way, yes you could utilities your CPF in full and are also eligible with the ABSD remission.

Regards
Aaron Chong
 9730 8455 
aaronchong2774@yahoo.com.sg Read More

HI,

I must say that your knowledge on properties are very good! What you have mentioned is tenancy in common where you can decide what the manner of holding for each owner.

If this is bought as a matrimonial, then only BSD will apply and you need not pay any ABSD.

Even if you just own 1% of the property, you will be able to utilise your CPF to pay for the property. In addition, the mortgage loan can be taken in both names. However, please take note of the CPF usage and what the after effect when you sell the 1% to your wife.

When you decouple and transfer the 1% to your wife, it will be considered as a sale and ABSD, SSD (if less than 3 years) will apply.

I will strongly recommend you to engage a professional to assist you in this.

As I am not able to contact you first, may I seek your help to contact me at 92707548  to discuss further?

Thanks!

Alan Sng
PropNex Read More

Hi;

1) Yes, you can use all your CPF / OA to funds for the purchase, but I wont recommend you to do so as there are implication later on..
2) Yes, SC/foreigners first matrimonial home can apply for ABSD remission
3)No , IRAS will only charge the ABSD based on the 1% of your shares that you are gonna sell to your spouse..

Please do get in touch with me for further discussion on the implications and what are the things that you need to take note of as 99/1% is not a straightforward case.. Thanks

Rgds;
Lyna Song
 9623 8442 
Associate Group Director
Propnex Realty Pte Ltd
lynasong@hotmail.com Read More

Dear Sir,

1) You can use all your CPF in your OA even if you only own 1% of the property. However, you need to take note that when you are decoupling from the property, the CPF plus interests will need to be refunded back into your OA account. As you are only holding 1% of the property, your wife will not be able to take a loan to repay this amount and therefore cash will need to be used thereby increasing your cash outlay.

2) As long as you are married, you will not need to pay ABSD for your matrimonial home ie your first home.

3) You are not required to repay back the ABSD, however, depending on when you do the decoupling, SSD may apply on the 1% share.

I have assisted a few of my clients to decouple and buy. Please feel free to contact me so that I can share with you in details the whole process and some considerations that you will need to take note of.

Regards,
Nick Tan
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Mr & Mrs Tan (Seller of Inter-Terrace House) Read More

Good afternoon,

Yes it appears you have some background knowledge on the ins and outs. Just would like to share my inputs on the above.

For (1) Yes you can use the full CPF OA, even though you only hold 1% ownership. However, when you decouple and exit the ownership, the CPF utilized+accrued interest for the exiting owner has to be refunded by the remaining owner to allow him to exit.

(2) If its your 1st matrimonial property, ABSD remission is applicable for a SC and Foreigner married couple. Yes even for 1% ownership for the SC buyer, as long as its your joint purchase as a 1st matrimonial residential property and both of you do not own other residential properties.

(3) If the decoupling is done a few years later, the ABSD remitted would not be requested. However, Seller Stamp Duties on the 1% transferred will be applicable if its transferred within 3 years. There would also be stamp duties payable for the market value of the 1% share transferred, but this would be manageable.

I have worked on similar cases and would be happy to share the best approach tailored to your requirements. May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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