Government, how about scrapping ABSD?

Now that the Monetary Authority of Singapore has gotten its act together to ensure that folks that buy property in Singapore have the ability to pay and pay, even if the cookie crumbles, maybe its time for the Government to do away with the Additional Buyers Stamp Duty?

It always seems ridiculous to me that someone who has the wherewithal to buy a second or a third property — such as borrowing very little (like 10 or 20% of the price) or paying (gasp!) for the purchase all in one go — has barriers put in front of them.

By contrast, those without a brick to their name, let alone a property — for which read, first-time property buyer — get away paying just the normal stamp duty. 🙄

What kind of prudential logic is that?

That if you are frugal, you should be penalised? And if you are starting out or has never been able to put together enough brass to buy a home till you are old and grey should get a leg up to over-commit yourself?

Thus I welcome with open arms the MAS edict which caps total debt service ratios for property buyers as well as close loop holes that might allow cheats to try and circumvent them.

I would however welcome even more any move by the G to scrap the ABSD for all buyers of second, third and subsequent properties.

Or if that’s not possible, then at least give a waiver on ABSD to those who can afford to buy with 100% cash payment. There can’t be that many of them around, especially if this waiver is confined strictly to Singaporeans by birth or at least having been a citizen for 10 years.

I am sure such a waiver won’t create a property bubble or promote unwise purchases.

For good summaries and commentary on the new MAS total debt servicing ratios go here:

http://propertysoul.com/2013/07/01/what-total-debt-servicing-ratio-meant-to-kill/

http://sg.finance.yahoo.com/news/mas-latest-rules-property-loans-160000467.html

http://www.bluta.com.sg/blog/2013/07/does-government-expect-turbulence-in-singapore-property/

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3 thoughts on “Government, how about scrapping ABSD?

  1. Pingback: Daily SG: 5 Jul 2013 | The Singapore Daily

  2. Wow, didnt know auntie is so super rich with hordes of cash on hand. Can spare some? hehe.

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