ABSD/ Decoupling/
Equity Term Loan

Additional Buyer’s Stamp Duty (ABSD) is a tax applied to residential property purchases in Singapore. 

Singapore citizens pay ABSD of 20% on their second property purchase, and 30% on the third or subsequent property purchase. 

Singapore Permanent Residents pay ABSD of 5% on their first property purchase, 30% on their second property purchase and 35% on all subsequent purchases. 

Foreigners pay 60% ABSD on property purchases. 

Entities pay 65% ABSD on property purchases. 

65% ABSD is also applicable to Trustees and Housing Developers (remittable subject to conditions + 5% non remittable).

Note: updated as of 1 Jan 2024

Yes, this is definitely possible and I have helped numerous clients from different backgrounds to achieve this and in the process, grew their asset portfolio or increase their wealth exponentially. 

I have helped many clients achieved this and most importantly, within their means and in a prudent manner.

 
Note: This is subjected to each individual’s unique situation. 

This is when one co-owner transfers their share of ownership of the property to the other co-owner(s) thus removing the property count of 1 co-owner. 

Decoupling has been a commonly used method as many married couples in the past, before the implementation of ABSD, bought homes under both names as a norm. 

It is simply the removal of 1 owner from the property through the “buy out” by the other party. It is sometimes known as part-sale or part purchase too. 

Note: Married couples cannot decouple in this way for HDB flats as the loophole in granting frivolous transfer of ownership to one party has been shut off on 4th May 2016.

A term loan is also known as a home equity loan. It means the same thing. 

When you take a term loan, you use the equity of your property as collateral. So if your property has increased in value over time, a home equity loan may be the best way to borrow some money at a low interest rate. We call this “Gear Up“.

There are quite a number of options I have proposed and successfully executed for my clients where they simply upgrade comfortably or even buying 2 properties with substantial rental income. Having said that, I will definitely need more information (outstanding loan, finance assessment, CPF usage etc.) to assess the feasibility of it.

I have at least 4 options for you and I would require information such as property info, finance assessment, personal plans etc. before I can propose a customised plan for you and your family. 

100% NO. I strongly believed in mutual trust and having a transparent relationship will go a long way in proving my service and sincerity to you. At the end of each meetup, I provide all my clients with a free RISK Analysis report.