Oh no! The government has just raised Buyer’s Stamp Duty for residential properties! What should I do? Should I exercise my option now before the clock strikes 12? More cooling measures coming up? Is the market going to CRASH???
Fret not. I am here to give you (my) answers!
First of all, let’s not get confused. The additional 1% BSD is applicable for property value in excess of S$1 million. So if you are looking to buy a property below S$1 mil, please go back and have a good rest and not fret over this BSD hike.
What if you are upgrading to S$1.2 mil condo? Sad to say, you will be affected by this new rule if you do not exercise your option by midnight. How much more BSD do you need to pay? That will be S$2,000 payable to our tax man. Is there a need to rush? Please think twice. If you miss the deadline before midnight, at most you pay an additional S$2,000 in BSD. But if you make a rash decision and have to forfeit your option fees (partial), then that will be more than the additional S$2,000 for BSD.
But if you are a multi-millionaire who wants to buy a New Futura? Then maybe you should act now, if not you might end up paying as much as S$20,000 more in BSD. But maybe this S$20,000 is considered ‘peanuts’ to you, maybe?
My personal thought is that this increase in BSD rates is not going to hurt most of us unless you are going for a high-end property. In fact, prior to the Budget, the market was expecting the government to introduce more drastic measures to cool the heated enbloc market. This mild measure seems to be a good news for the market.
So, keep calm and carry on!