1. Additional Buyer Stamp Duty (ABSD)
If you don’t have to pay ABSD, you are already paying considerably lesser then the rest who need to pay. So logically when you spend lesser, you make more money and likewise, those who do not have to sell at a higher price in order to cover the ABSD that they would have paid.
Take for example a piece of property worth $1 million. If you have to pay 15% of ABSD, you would need to sell at $1.2 million to breakeven.
On the other hand, if you do not have to pay ABSD, by selling at $1.2 million you would already have made $150k profit.
So when you do not have to pay, you are in a sense getting an “Ang Pow” – a monetary gift from the government.
2. Removal of ABSD
If you purchase something today in the environment where there exists a high ABSD of up to 15% that weighs down the price, what happens?
Imagine if you are a private property seller and you are selling your property today at $1 million due to the 15% ABSD.
The moment the government removes the ABSD – what would you do to the asking price?
Would you increase it?
Also, if you purchase before the ABSD is removed, would you enjoy the growth when all the sellers in the market start to increase the prices? You can easily do a gear up with the bank to take out the profit you make in between.
3. You can Refinance with the Bank
Unlike Housing Development Board (HDB) flats, where you need to sell away your flat before you can enjoy your profits, private property instead allows you the opportunity to gear up and refinance with banks to easily retrieve the profits you make.
4. Population Growth
With the Population White Paper mentioning that the population will hit 6.9 million in 2030, how many of them can purchase private property first before purchasing a HDB property?
With demand coming in, will the price increase?
Between June 2014 and June 2015, there was a spike of 70,000 in the population count. Only 20,000 will be new Singapore Citizens. This means that if the rest of them are going to buy property, they can only purchase private ones.
Apart from that, these 20,000 new citizens might not be buying HDB properties too.
So with demand surely coming up, where will the prices be heading to?
5. Land is Limited
With limited land in Singapore and the government spending billions of dollars to bring infrastructure underground, how much do you think they will sell the available land on the ground at?
If future land price is more expensive, do you think that your property’s price will grow?
With so many reasons pointing in the direction that property prices will move up, why are you not purchasing today?
Many can enjoy projected 6-figure growth and has their monthly installments covered for more then 5 years just by simply restructuring of what they have today.
Contact your trusted property HDB Upgrading Strategist to know how you can buy with the minimum risk and maximum potential. You can also contact me if you have any interest on finding out how people avoid paying ABSD legally.
You can wait, but do not regret when the opportunity slips past your fingers.
As time passes, an older HDB flat can cause new obstacles and affect your chances to own a private property.
Some opportunities only work well in certain conditions.