15/02/2023
Budget shunbian announce cooling-ish measures so smart la this man no wonder can become the next PM..
Just some quick thoughts on the important changes, infographics attached you can ownself read:
1. RE: Increase in Marginal BSD for Residential/Commerical Properties
- Marginal means a bit only so no worries; if you buy something that is $2M the additional increase is only $5K. If you can afford 2 mil you don't have $5K meh?
- Properties under $1.5m are not even affected at all but a small proportion of buyers that are just nice just nice kind might downsize and make these lower-priced units more in demand;
- The kick only come in for those high quantum unit $3m and above because the marginal rate for excess of $3m becomes 6% instead of 4%;
- Not really applicable for normal people. You say Singapore no wealth tax now they hide here hide there give you.
2. RE: Increase Housing Grant for 1st timers buying Resale Flats
- Give up to extra 30K how shiok;
- To increase buyer affordability so that sellers cannot shout even higher prices;
- In the short term sellers cannot just "eh I just increased the price to 30K more la" because of COV, so HDB prices will be cushioned
- Long-term effects are not so good, these buyers will receive extra money in their OA upon selling, which makes them marginally easier to upgrade to a more expensive property.
- We can also see prices tend upwards as sellers gradually increase their price from this leeway given by the extra grants, after many many transactions price will go up again;
- Then what increase lagi more grant?
Final Say Real thoughts:
- They can overnight change your property plans because they are the ahgong, so just buy one when you can first la no need to fight and anticipate what they gonna do.
- They want to cool off the high quantum transactions, probably for friends in the North who are thinking of coming in.
- For HDB resale, same thing just go for what you need, and don't think so much about earning money/appreciation. Whatever price that you ask for eventually will be cushioned by the Gov.
