Time wait for no one, the more you wait, the more you lose.

Many Singaporeans started off with buying a direct HDB flat as their first matrimonial home and eventually wanted to upgrade to a private condominium after Minimum Occupant Period (MOP). But many unforeseen circumstances started to surface over last 10 years with many rounds of cooling measures.

When it comes to buying property, many buyers started to procrastinate or have this wait and see approach. Trying to time the market, wait for property prices to bottom out, and then buy when the houses are cheap. But there are some inherent problems with trying to do this right: In the end, many of those who delayed their purchases, expecting prices to drop, ended up actually paying more or didn't buy.

The ride started from 8 Dec 2011 when the first Additional Buyer Stamp Duty (ABSD) was introduced to cool a red hot residential property market. It is widely recognized to be an effective tool to pre-empt a speculative bubble from forming. At that time, Singapore citizens (SC) need to pay 3% ABSD if they are purchasing 3rd and subsequent property. PRs purchasing second and subsequent property pay 3% while foreigners and non-individuals pay 10%. The market sentimental of buying property didn't stop there after these cooling measures.

On 6 Oct 2012, Mortgages tenures for residential loans were capped at 35 years and Loan To Value (LTV) was lowered to 60% for the mortgage loans if longer than 30 years or extend beyond the retirement age of 65 years. LTV for non-individuals lowered to 40%.

Within 3 months another round of cooling was announced on 12 Jan 2013, the Additional Buyers Stamp Duty (ABSD) was adjusted the second time. This additional measure is to ensure a stable and sustainable property market. this time around, Singapore Citizens (SC) need to pay 7% on second and 10% on the third purchase. PRs need to pay 5% for first and 10% for second purchase. Foreigners and non-individuals now pay 15%. Loan To Value (LTV) was lowered to 50% for the second loan and the third loan is 40%. Non-individuals' LTV now 20%.

On 29 June 2013, the Total Debt Servicing Ratio (TDSR) was introduced to encourage home buyers to borrow within their means. It was part of the cooling measures to prevent borrowers from being over-extended with their home loans. The current rate for TDSR is at 60% of your gross monthly income that includes minus of your car loans, home loans, and credit card expenditure. You have to consider how TDSR will affect your borrowing and whether you have sufficient funds if you decide not to sell your existing HDB.

On 27 Aug 2013, Mortgage Servicing Ratio (MSR) for HDB loans now capped at 35% of gross monthly income; MSR for loans from financial institutions capped at 30%.

On 9 Dec 2013, 2nd timers applicants who buy Executive Condo need to pay Resale Levy.

On 11 March 2017 - Seller Stamp Duty (SSD) holding period was reduced.

With this change, SSD rates were reduced to 12%, 8%, and 4% and will only apply to properties sold within 3 years of purchase, down from 4 years previously on 20 Feb 2010.

Total Debt Servicing Ratio (TDSR) will not apply to mortgage equity withdrawal loans with Loan-to-Value (LTV) ratio equal or below 50%.

Two major changes on 6 July 2018 - Additional Buyer Stamp Duty (ABSD) increased again and Loan-to-value (LTV) limits are lowered. This time round, Singapore Citizens (SC) need to pay 12% on second and 15% on the third purchase. PRs need to pay 5% for first and 15% for second purchase. Foreigners pay 20% while coporate entites pay 25% for all purchases. Loan To Value (LTV) was lowered to 75% for the first loan, 45% second loan and the third loan 35%. Non-individuals' LTV now 15%. With the decrease in LTV limits, homebuyers loan quantum is lesser which means your down payment is higher. In short, you have to pay more taxes and cannot borrow as much money as you used to.

Many cooling measures were implemented over last 10 years. Time Wait For No One, The More You Wait, The More You Lose. As long as you can afford it, don't hestitate to get a trusted real estate consultant to plan your financial planning for the next 3-5 years. You may be surprised that you can own not one but two without touching your savings. Frankly speaking how many years you can afford to wait, your income will never be able to catch up and your loan that you get will be lower and instalment will be higher as you get older.

With the strategy of Property Wealth Planning, it is still possible to own multi-properties without touching your savings but not many people know this technique as they are only shared in seminars that cost a few thousand dollars per person. I can share with you the options you have & customized investment roadmap to help you get started. I have helped many of my property owners create passive income streams and attain FINANCIAL FREEDOM earlier in their lives.