Expats: Navigating ABSD Remission under FTA
From Daunted Renters to Proud Homeowners: Gareth and Edna's Journey to Buying Their First Home in Singapore
Gareth and Edna, a married couple, embarked on their journey in Singapore a year ago when they arrived to work in this vibrant city-state. Initially renting, they recently decided it was time to put down roots and purchase a place they could call their own, especially with their plans to stay in Singapore long term.
Initial Challenges and Concerns
Being relatively new to Singapore, Gareth and Edna found themselves overwhelmed and somewhat daunted by the intricacies of the local property market. When they first met me, they expressed feeling quite alone in this endeavor, with numerous unanswered questions clouding their minds. One key concern that created significant anxiety for them was understanding their eligibility for Additional Buyer’s Stamp Duty (ABSD) remission, particularly under Free Trade Agreements (FTAs).
Finding Clarity in ABSD Eligibility
In Singapore, nationals or permanent residents of specific countries under respective FTAs receive the same Stamp Duty treatment as Singapore Citizens:
- Nationals and Permanent Residents of Iceland, Liechtenstein, Norway, or Switzerland
- Nationals of the United States of America
Edna, being a national of the USA, qualified for this remission even though Gareth did not hold residency in any of the specified countries. Their plan to buy property jointly for their matrimonial home, coupled with the fact that they did not possess any other residential properties, meant they were eligible for ABSD remission. This crucial piece of information significantly alleviated their stress and provided much-needed clarity.
Navigating the Market: Overcoming Misleading Advice
Before meeting me, Gareth and Edna encountered several agents who were more focused on selling specific developments rather than addressing their concerns and long-term needs. This approach left them even more confused, almost leading them to commit to a potentially loss-making development.
When we first met, I made it clear that my role was to provide them with a balanced view—not just the advantages but also the drawbacks of various developments. As I always say, there’s no perfect development; the goal is to find one with drawbacks that we can live with.
"Thank you very much for the colour! We have not really heard such thorough pros and cons from the other agents we have worked with."
- Gareth and Edna
Strategic Guidance and the Right Choice
After evaluating several developments and discussing their pros and cons in depth, we identified a new development that perfectly matched their needs and also promised good potential returns when they decide to exit in the future.
This strategic analysis ensured that Gareth and Edna were making a well-informed decision, mitigating any risk of regret in the future.
Conclusion: New Beginnings
Gareth and Edna's journey from renters to proud homeowners in Singapore exemplifies how personalized, comprehensive guidance can transform a daunting property market into a manageable and ultimately rewarding experience. Their successful acquisition of a home that fits both their lifestyle and investment criteria underscores the importance of clarity, informed decision-making, and expert support.
If you're facing similar concerns in your property journey, let's connect. I am here to help navigate the complexities, offering you the clarity and guidance required to make your dream home a reality.