"Stamp duty" on house purchases beyond first home

"Stamp duty" on house purchases beyond first home

A large stamp duty was one successful house price cooling measure used by the Singaporean government recently. They exempted first-home buyers and buyers who sell their existing house. Evidence suggests it works. The most the prices would drop is the difference between the speculation-supported price and the price that first-home buyers would want to pay. People who currently have a lot of houses would find it difficult to sell their current houses at the price they bought/borrowed for them, but that's a risk they were willing to take.

Showing 20 reactions

  • Michael Shallcrass
    tagged this with important 2016-12-02 19:29:49 +1300
  • Andi Shen Liu
    commented 2016-11-30 21:40:39 +1300
    Here are some of the details of the Singapore’s “Additional Buyer’s Stamp Duty”, which penalises people who are purchasing multiple homes and penalises them more if they aren’t citizens. Also, other housing cooling measures:
    https://www.iras.gov.sg/irashome/News-and-Events/Newsroom/Media-Releases-and-Speeches/Media-Releases/2013/Additional-Measures-to-Ensure-a-Stable-and-Sustainable-Property-Market/

    Whichever party here proposes the ABSD here is going to get a lot of votes from everyone who isn’t a property speculator.

    Evidence it works?

    " It has been more than four months since the ABSD came into effect so there is sufficient data for us to examine and ascertain its impact. In the fourth quarter of last year, foreigners accounted for 1,359 or 19.8 per cent of private property transactions. First quarter 2012 purchases by foreigners fell significantly to 307 (5.7 per cent). Foreign buying in the suburban market was even lower with 142 sales attributable to them (3.8 per cent). "

    ^from a hand-wavy opinion piece by someone trying to convince people to drop the ABSD… yeah, looks like a shot in the foot
    http://news.asiaone.com/News/Mailbox/Story/A1Story20120504-343810.html
  • Nathan Rattray
    tagged this with interesting 2016-11-29 12:03:01 +1300
  • Nathan Rattray
    tagged this with important 2016-11-29 12:03:01 +1300
  • Andi Shen Liu
    tagged this with essential 2016-11-28 00:56:51 +1300
  • Jeanette Garnett
    tagged this with essential 2016-11-27 12:42:17 +1300
  • Jerry Cerveny
    tagged this with essential 2016-11-27 04:25:55 +1300
  • Tim O’Donnell
    commented 2016-11-26 20:30:45 +1300
    Too many ways for people to be first house buyers. Buy a house, create new company. Buy a house create new company. There has to be a way that people can’t get out of paying for it. As soon as there’s an exemption it creates a loop hole
  • Tim O’Donnell
    tagged this with dislike 2016-11-26 20:30:45 +1300
  • Alan Dawn
    commented 2016-11-26 20:19:37 +1300
    Better to address the fundamental reason why people invest in housing, (beyond their personal dwelling) rather than something productive.
  • Alan Dawn
    tagged this with low priority 2016-11-26 20:19:37 +1300
  • Ben Mayson
    tagged this with interesting 2016-11-26 15:36:45 +1300
  • Rohan Light
    tagged this with interesting 2016-11-26 12:33:02 +1300
  • Richard Wyles
    commented 2016-11-26 10:33:48 +1300
    I prefer a general tax on capital – i.e. sort of like stamp duty but 1% every year. In essence a big increase in rates but calculated on the equity (mortgages are deducted) and current rates are simply a line item e.g.
    - council rates
    - national property tax
  • Richard Wyles
    tagged this with interesting 2016-11-26 10:33:48 +1300
  • Graeme Kiyoto-Ward
    commented 2016-11-26 09:24:48 +1300
    Dealing with the housing market has to be one of the top seven items . We cannot afford to walk into a recession because we looked the other way as a housing bubble formed and burst. Also, this is about fairness of opportunity for youth who currently now locked out of the opportunity to own their own home. This is an option but the housing policy needs almost a separate working group.
  • Graeme Kiyoto-Ward
    tagged this with interesting 2016-11-26 09:24:48 +1300
  • Graeme Kiyoto-Ward
    tagged this with important 2016-11-26 09:24:48 +1300
  • Andi Shen Liu
    posted about this on Facebook 2016-11-26 08:23:21 +1300
    Suggestions: "Stamp duty" on house purchases beyond first home
  • Andi Shen Liu
    published this page in Suggestions 2016-11-26 08:21:54 +1300