Buying a condo with tenancy, is there any catch?

[inlinesix]

If say 

Condo A is your home, under wife's name (who is a housewife)

Condo B is under your name, but being rented out.

Is it against the law to declare rental income from B under your wife's income tax? 

 

Well, you need very hard evidence to prove that it is your wife income especially since she is housewife.

 

IRAS may deem it as tax avoidance.

[Showster]

If say

Condo A is your home, under wife's name (who is a housewife)

Condo B is under your name, but being rented out.

Is it against the law to declare rental income from B under your wife's income tax?

Rental must be apportioned based on the actual ownership (names of owners).

[Lala81]

Well, you need very hard evidence to prove that it is your wife income especially since she is housewife.

 

IRAS may deem it as tax avoidance.

 

thanks.

Rental must be apportioned based on the actual ownership (names of owners).

 

thanks.

I never really thought about this cos my friends' wives all work

[Karoon]

My frend lagi steam. Rented his apartment in Geylang to a few tiong kok chio bu.

 

Knn can collect rental via bank transfer also dun want.

Every month go and collect himself.

 

I ask him why. He says chio bu always open the door in pyjamas. ð

Heehee...

 

One time i was walking behind this rental block full of young tiong chio bus...

 

I looked up and saw one hanging her clothes at the window... completely topless... she saw me gawking but just didnt bother..

[Chongster]

Subletting has to be declared.

 

For this, itâs obvious that your wife does not stay there and canât sublet. If your wife stays there, the subletting amount also has to make sense.

 

This arrangement will only invite yourself to IRAS tea.

Actually the full subletting rent amount based on market rate will be declared as wife’s income in her tax filing, with payment all going to her account and staying in her account with full paper trail.

 

Iras aside, What I am struggling with is why sublettting of whole unit is not allowed in Singapore, if tenancy agreement permits

[Showster]

Actually the full subletting rent amount based on market rate will be declared as wifeâs income in her tax filing, with payment all going to her account and staying in her account with full paper trail.

 

Iras aside, What I am struggling with is why sublettting of whole unit is not allowed in Singapore, if tenancy agreement permits

If it were so easy, many rich Bros would have bought many more properties and subletted to their many wives!

 

I can also rent to my actual tenants for $1 and tell them to pay my mortgage directly.

[golden_eagle]

I have another question regarding subletting and rent. 

 

If the owner of a condo (the family's primary residences) the whole family goes abroad for a few years to as expats, and rent out whole his property, will he be allowed to register his own address and let banks/insurances/CPF posts all his letters to that house? Will IRAS treat that as a sublet and deduct some rental income when calculating rental/property/income taxes? 

 

 

Edited April 29, 2018 by golden_eagle

[Showster]

I have another question regarding subletting and rent.

 

If the owner of a condo goes abroad for a few years to work, and rent out whole his property, will he be allowed to register his own address and let banks/insurances/CPF posts all his letters to that house? Will IRAS treat that as a sublet and deduct some rental income when calculating rental/property/income taxes?

The short answer is yes. But may have to change IC address to a postal address that one proves that he can receive the mail.

[golden_eagle]

The short answer is yes. But may have to change IC address to a postal address that one proves that he can receive the mail.

 

I see. If he lived there for years and moves abroad, will the family be allowed to keep his IC address while rent out the unit? 

[Showster]

I see. If he lived there for years and moves abroad, will the family be allowed to keep his IC address while rent out the unit?

Can. But do arrange for someone to periodically clear the mail and notify you for important mail. Edited April 29, 2018 by Showster

[golden_eagle]

Can. But do arrange for someone to periodically clear the mail and notify you for important mail.

 

I see and thank you. 

[Mercury1]

IRAS should consider the whole unit as rented out and not just subletting since no member of the family actually resides there.

 

I have another question regarding subletting and rent. 

 

If the owner of a condo (the family's primary residences) the whole family goes abroad for a few years to as expats, and rent out whole his property, will he be allowed to register his own address and let banks/insurances/CPF posts all his letters to that house? Will IRAS treat that as a sublet and deduct some rental income when calculating rental/property/income taxes? 

 

[GEBuyingAgent]

I saw many ads of condo units with tenancy, it may be good to have some rental income during that interval but are there any catch with such arrangements? For example tenant spoil furniture, not willing to move out or what are the major catches one should look out for? 

It might be good if you would like to gain a monthly income. However, please do not forget to consider the property appreciation side.

[blueunicorn]

I saw many ads of condo units with tenancy, it may be good to have some rental income during that interval but are there any catch with such arrangements? For example tenant spoil furniture, not willing to move out or what are the major catches one should look out for? 

 

 

Yes, it sounds good to have some passive income during that interval but of course everything comes at a price. I read this article about the things one must know before becoming a landlord. https://www.edgeprop.sg/property-news/3-things-know-becoming-landlord

 

Of course there are pros and cons in everything and it would be helpful to take note of that.

 

 

[raymond_khoo]

just sharing that there is a way to inspect your tenant for a report - get a trusted air con or touch up painting service to get in your home and snap some pics of your place.

i usually use homepainting.sg for their home painting services.. then they know the routine of going in the place to 'touch-up' paint and check out condition of your condo.

At the same time i get them to paint just 1 room lah.. very affordable, total only about $200 for the entire room into sparkling enticement mode for tenant.

🙂

 

[bluesky3000]

Buying a condo with tenancy and without do not make much difference to me cos you will definitely renovate your apartment when the keys are handover to you either from the buyer or from the tenant in my opinion.The only difference is that tenanted units are more worn off as compared to own stay. 

Perhaps in the midst of the sales transaction, you might want to check with the outgoing owner to find out more on the current tenant for.eg is the rent timely paid and etc. 

Came across this article 8 Mistakes Landlord Made which I think it might be useful to you. Hope it helps.

[bluesky3000]

4 hours ago, sgcarmart2019 said:

Renovate while the tenant still staying there?

? 

[Wiwiwi]

Hi

 

FYI…  buying a tenanted unit.

just to share. I got 1 unit with a tenant a few years back. Unfortunately, she left and went back to UK last minute, leaving very hastily because of family health issues. The 2 month of IMMEDIATE rental ( as claim by the agent ) was great but when she left suddenly, we undercover a few major issues that we need to fixed. Eg. broken doors, tv, furnitures, leaks  etc.  Just for ref, for just  the doors repair cost nearly $2k eg sliding balcony doors, sliding room door, sliding toilet door (these are  doors that slides into the wall).

so buying a tenanted was not fun for us. For all the stuffs that was broken, we cannot tell if she is the one who broke  them or it was there left by previous tenant. So LL all changed and paid by us.