- Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current three years to four years.
- Raise the SSD rates to 16 per cent, 12 per cent, 8 per cent and 4 per cent for residential properties bought from Friday onward, and which are sold in the first, second, third and fourth year of purchase respectively.
- Lower the Loan-To-Value (LTV) limit to 50 per cent on housing loans for property purchasers who are not individuals.
- Lower the LTV limit on housing loans from 70 per cent to 60 per cent for property purchasers who are individuals with one or more outstanding housing loans.
Specifically, for residential properties bought4 on or after 14 January 2011, the SSD rates to be levied on the full consideration will be increased5 to as follows:
a) SSD at 16% (higher than up to 3% currently), if the property is sold in the first year of purchase, i.e. the property is held for 1 year or less from its purchase date.
b) SSD at 12% (higher than up to 2% currently), if the property is sold in the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years.
c) SSD at 8% (higher than up to 1% currently), if the property is sold in the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years.
d) SSD at 4% (no SSD currently), if the property is sold in the fourth year of purchase, i.e. the property is held for more than 3 years and up to 4 years.
The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is 5 years. IRAS will be releasing an updated e-tax guide on the circumstances under which SSD will apply and the procedures for paying SSD6. The e-tax guide will be available at www.iras.gov.sg.
Lower the Loan-To-Value (LTV) Limit to 50% on housing loans granted by financial institutions regulated by MAS for residential property purchasers who are not individuals.
With effect from 14 January 20117, an LTV limit of 50% will apply to all residential property purchasers who are not individuals. This includes corporations, trusts and collective investment schemes, among others.
The 50% LTV limit for housing loans will also apply to joint property purchases by an individual and a purchaser who is not an individual.
Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from the current 70% to 60% for residential property purchasers who are individuals with one or more outstanding housing loans at the time of the new housing purchase.
The LTV limit is lowered from 70% to 60% with effect from 14 January 20118 for borrowers who are individuals and have one or more outstanding housing loans (whether from HDB or a financial institution regulated by MAS) at the time of applying for a housing loan for the new property purchase.
http://www.mas.gov.sg/news_room/press_releases/2011/Measures_To_Maintain_A_Stable_And_Sustainable_Property_Market.html
