New tax, 80% loan limit to prevent bubble? Hahaha

[downgrader]

TOO LATE AS FAR AS I AM CONCERNED

I HAVE BEEN TORTURED FOR SO MANY YEARS





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Singapore News


Government to introduce new tax, lower loan limit to cool private property market

By Mustafa Shafawi, Channel NewsAsia | Posted: 19 February 2010 1752 hrs


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Condominium in Singapore (file pic)




SINGAPORE: The Government has introduced two new measures that will take effect Saturday to temper sentiments and pre-empt a property bubble from forming in the private residential market.

It said they will help to ensure a stable and sustainable property market.

The first is a Seller's Stamp Duty on all residential properties and residential lands that are bought after Friday and sold within one year from the date of purchase. The stamp duty will be applied at the standard ad valorem stamp duty rates for the conveyance, assignment or transfer of property.

Housing and Development Board (HDB) flats will not be subjected to the stamp duty as they are already subject to a minimum occupation period of at least one year.

The Ministry of National Development (MND) said the objective of this new tax measure is to discourage short-term speculative activity that could distort underlying prices. It stressed that it is not targeted at the purchase of properties for owner occupation or longer term investment.

The housing loan limit will also be capped at 80 per cent of the private property's value, instead of the current 90 per cent.

The 80 per cent Loan-To-Value limit will apply to all housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats, including those under the Design, Build and Sell Scheme.

Loans granted by the HDB for flats - including those under the Design, Build and Sell Scheme - will still have a cap of 90 per cent.

MND said this is because HDB flats are already subject to other criteria to prevent speculation and encourage financial prudence, such as minimum owner occupation period and restriction on ownership to one flat per household.

Explaining the rationale for the measures, MND said there is a risk that the market could overheat in the next few months, given the optimism fuelled by the economic recovery and low global interest rates.

However, it noted that the current level of speculative activity is still lower than what it was at the height of the property market boom. Overall price levels are below the previous peak.

MND warned that any excessive exuberance will make the property market vulnerable to the continuing risks in the global economy.

The Government described the new measures as "calibrated", saying it prefers to take small steps early, rather than be forced to impose more drastic measures after a bubble has formed.

It will continue to ensure that there is adequate supply of housing to meet demand. Sites that can yield 10,550 private housing units have already made available in the Confirmed and Reserve List of the Government Land Sales (GLS) Programme in the first half of 2010.

This is the highest supply quantum in the history of the GLS Programme.

- CNA/sc

 

[mscitw]

ha ha, Marboro is a funny bloke.

Private properties are subjected to the new extortion but not his DBS Scam.

Marboro certainly think local peasants are idiots, but personally we think local peasants are generally imbeciles.

For the DBS scam pigeonholes, their tenancy cost nearly $500,000 but only local peasants who earn less than 8K are eligible to buy a tenancy lease?!

Therefore this is proof that Marboro is a vermin who wants peasants to incur debts to please his political masters.

 

[Sperminator]

TOO LATE AS FAR AS I AM CONCERNED

...
Loans granted by the HDB for flats - including those under the Design, Build and Sell Scheme - will still have a cap of 90 per cent.

...
- CNA/sc

how about for first time buyers of HDB Citizens to have a 50% discounted price, and 100% loan granted by HDB?

Since the pricing of the HDB have risen 40% over the last 5 years, it's quite reasonable that HDB is built for Citizens.

Anyways, SGP making so much money from so many tax revenue sources...

This will cause less strain to the already low wage earned...

--->

80% loan rate across all board do not prevent speculation... and implementation of 1 year probation from selling, only delays profit by 1 year.

as in China, 80% loan rate? you can even borrow the rest of the 20% if you know how... that's how the game is played.

The rich would know how to avoid such policies... and they can even profit from it, because the real demand is suddenly lesser, as people where got so much SGD in bank account for a higher COV???, and to foot 10% more... deposit of 20% for 2nd time buyer... or other private properties...

Another thing to take note is that most Chinese prefer to pay 100% by cash for property... and also, many rich regional tycoons would invest in multiple private housing as seen in recent quote that private housings are snapped up by Malaysians and Indonesians. (they can afford to buy properties without leveraging from Bank Loans, and survive on rental interest, or even capital appreciation) so making the 80% cap a redundant policy... which again benefits the rich, and got nothing to do with the poor...

 

[zuoom]

looks like the brakes are getting stepped harder. but would it be enough? or too much?

 

[lifeafter41]

looks like the brakes are getting stepped harder. but would it be enough? or too much?

I think it's just the beginning. If the so called GE is coming, something needs to be done. Have to be proactive.

 

[johnny333]

I think it's just the beginning. If the so called GE is coming, something needs to be done. Have to be proactive.

The PAP is making the right noises now about listening to the citizens concerns, but after the GE I bet it'll be back to ignoring the citizens.

The only long term solution is to fix the system by voting in more opposition members.

 

[po2wq]

The PAP is making the right noises now about listening to the citizens concerns, but after the GE I bet it'll be back to ignoring the citizens.

The only long term solution is to fix the system by voting in more opposition members.

u r rite! ...

gfi dem ze rite message! ... show dem who's ze boss! ...

 

[tookara]

huh u call that curbing?

 

[johnny333]

u r rite! ...

gfi dem ze rite message! ... show dem who's ze boss! ...

Sporeans will have to live the reality that LKY has created.

Many Sporeans have been trained since kindergarten to follow the LEADER. He knows best, he is world class, without him we are doomed, he will fix everything, trust & rely on the leader,... i.e. A crutch mentality.

Even if we are fortunate enough to have a credible opposition, they are going to have a tough time trying to change attitudes & the system.

PAP has created alot of special interest groups. These groups are not going to willingly give up their privileges & $$$$: multi-million salaries, special parking privileges, special housing,...

Spore is in for a rough time. :(