{"id":109526,"date":"2019-07-31T12:14:32","date_gmt":"2019-07-31T05:14:32","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-parents-buying-homes-through-their-children-to-avoid-absd\/"},"modified":"2019-07-31T13:03:56","modified_gmt":"2019-07-31T06:03:56","slug":"more-parents-buying-homes-through-their-children-to-avoid-absd","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/more-parents-buying-homes-through-their-children-to-avoid-absd\/","title":{"rendered":"More parents buying homes through their children to avoid ABSD"},"content":{"rendered":"


\nWhile data is limited, property agents said they observed a noticeable increase in apartments being purchased by rich families for their children since the cooling measures came into effect in July 2018.
\nNot a lot of 24-year old university students get to live in a $1.2 million penthouse, especially in Singapore, one of the world\u2019s priciest property markets, reported Bloomberg.
\nShawn, whose apartment in central Bukit Timah region was bought by his mother, is among the lucky few. But his group is growing as families find ways to work around the cooling measures by purchasing properties for their children.
\nThe measures set the additional buyer\u2019s stamp duty (ABSD) at 12 percent for second homes and 15 percent for third and succeeding properties.
\n\u201cAnecdotally we\u2019ve observed more young home buyers entering the market,\u201d said Christine Sun, OrangeTee & Tie Pte head of research and consultancy.
\nShe added that while first-time home purchasers who are unaffected by ABSD dominate, many citizens see the value of accumulating real estate as a store of wealth.
\nIn fact, parents are now taking the lead when it comes to house hunting.
\n\u201cThe high ABSD rate has induced parents to act vicariously, using their children\u2019s names to acquire another private residential property,\u201d said Savills (Singapore) executive director of research and consultancy Alan Cheong.
\n\u201cParents are either genuinely concerned that their children won\u2019t have the wherewithal to acquire private residential properties on their own or using the first reason as an excuse to acquire properties for themselves.\u201d
\nSuch tactic will only work if the child is at the legal age to own property.
\nIf the child is below 21, Cheong said families go around the ABSD by setting up a trust account under their child\u2019s name, allowing parents to hold the property for them.
\n\u201cA trust is a structure whereby a parent can hold a property for their minor child. But the property belongs to the child, and not to the parent,\u201d said Dentons Rodyk & Davidson LLP senior partner Edmund Leow.
\nThis is, however, a more expensive route to take.
\n\u201cThe costs involved are usually quite steep, and it\u2019s only a viable option for the wealthiest of families in Singapore,\u201d said Nicholas Mak, APAC Realty Ltd. unit ERA Singapore head of research.
\nMeanwhile, Leow does not see the trust option as a case of tax avoidance.
\n\u201cThis is not a way to avoid stamp duty,\u201d he said. \u201cThe liability for ABSD will be assessed looking at the profile and property count of the child beneficiary. For example, any rental income, or proceeds of a subsequent sale, will belong to the child and not the parent who bought the property.\u201d
\nLooking to buy a home but not sure where to start? Get insight on the best locations for your new home with our\u00a0AreaInsider\u00a0Guides.
\nFiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email\u00a0fiona@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…More parents buying homes through their children to avoid ABSD<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

While data is limited, property agents said they observed a noticeable increase in apartments being...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-109526","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-suy","jetpack-related-posts":[{"id":93765,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/market-barely-had-time-to-respond-to-new-cooling-measures\/","url_meta":{"origin":109526,"position":0},"title":"Market barely had time to respond to new cooling measures","date":"July 13, 2018","format":false,"excerpt":"\r The Singapore government departed from its recent practice of announcing sensitive information on Fridays when it introduced its latest round of cooling measures on 5 July, which is a Thursday \u2013 barely giving the market time to think. In a note, Withers KhattarWong partner Kenneth Szeto said announcements were\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":100382,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sentiment-among-property-developers-down-on-july-cooling-measures\/","url_meta":{"origin":109526,"position":1},"title":"Sentiment among property developers down on July cooling measures","date":"October 23, 2018","format":false,"excerpt":"\r The latest round of cooling measures were described as unexpected and surprising, as well as extremely disruptive. Property cooling measures announced in July have dampened sentiment in the property market, with the Real Estate Sentiment Index (RESI) falling sharply to 4.0 in Q3 from 6.6 in Q2, reported the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":123833,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-unveils-new-property-cooling-measures\/","url_meta":{"origin":109526,"position":2},"title":"Singapore unveils new property cooling measures","date":"December 16, 2021","format":false,"excerpt":"\r Singapore unveils new property cooling measuresThe new Singapore property cooling measures, which include a higher ABSD, lower TDSR, and tighter LTV, will take effect from today, 16 December 2021. The Government on Wednesday (15 December) unveiled a package of measures to cool the private residential and HDB resale markets.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/Buildings-singapore.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":113626,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/foreign-buyers-show-resilience-in-the-luxury-condo-market\/","url_meta":{"origin":109526,"position":3},"title":"Foreign buyers show resilience in the luxury condo market","date":"January 15, 2020","format":false,"excerpt":"\r While the cooling measures in 2018 have dampened demand for residential properties, foreigners who bought top-end condos are showing more resilience.\u00a0 The cooling measures implemented in July 2018 may have lowered general home-buying demand, but foreigners appear to have been more resilient towards high-end condos, reported The Business Times,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":118661,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-cooling-measures-all-the-more-necessary-amid-economic-crisis-says-desmond-lee\/","url_meta":{"origin":109526,"position":4},"title":"Property cooling measures all the more necessary amid economic crisis, says Desmond Lee","date":"September 17, 2020","format":false,"excerpt":"\r \u201cA home is a big ticket item and it\u2019s for the well-being of Singaporeans that some of the measures are there,\u201d said Mr Lee. National Development Minister Desmond Lee believes the property cooling measures are necessary to safeguard the well-being of Singaporeans by encouraging prudence and caution in long-term\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8215,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/still-too-early-to-remove-cooling-measures-wong\/","url_meta":{"origin":109526,"position":5},"title":"Still too early to remove cooling measures: Wong","date":"March 1, 2016","format":false,"excerpt":"\r National Development Minister Lawrence Wong. (Photo: Nitroacid \/ Wikimedia Commons) It is premature to lift the property cooling measures as it could undo the government\u2019s efforts to make home prices affordable, revealed National Development Minister Lawrence Wong during a parliamentary session on Monday (29 Feb), and reported Channel NewsAsia.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/109526"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=109526"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/109526\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=109526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=109526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=109526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}