ST opinion: Windfall gains from selling flats should be taxed

[Wt_know]

angmoh saying willing seller willing buyer

sinkie saying 价高者得

Edited June 29, 2021 by Wt_know

[Wt_know]

30 minutes ago, Hydrocarbon said:

While the tax on the profits of sale sounds good (in principle), in reality, I think what you say will happen.

If the seller has to pay a higher tax, all they'll do is ask for a higher price.

However, one thing might happen is that since the suggestion is based on the couple's income / taxed as income, this means that different sellers would have different taxes levied on their HDB sales profit. This could mean that buyers can still hunt for good deal from sellers with lower income tax (staying in the same block / area / something), and this might make the sellers with higher income tax drop their pricing a bit more / absorb the taxes instead of passing it down to the buyers.

Or it might just make the sellers with lower income tax price their unit similar to the sellers with higher income tax, maybe minus a bit to sell their house faster. This seems to be more likely.

Ah well, this HDB issue has been decades in the making. Don't think it will be resolved any time soon. I've resigned myself to using more lube on my backside.

when the said lower income owner saw propertyguru price the punggol hdb at $1,000,000 ... will he lower his expectation to $850K? muahahahaha

don't forget there is another "factor" hor .... the agent ...  

every now and then i got call that can sell my unit higher ... higher ... and higher ...   ...

but if i sell i have to go pasir ris set up tent to join kobayashi club

Edited June 29, 2021 by Wt_know

[Kxbc]

Higher tax might really evolve into higher prices.

Perhaps extending the MOP to 10/12 years might "help" buyers understand that they should seriously consider future needs & commitments before they buy. This helps to reduce the opportunistic element for selling out in 5 yrs' time. 5 yrs is relatively short but 10/12 yrs might make them think longer term.

Selling before MOP will then have to be on case-by-case basis and can only sell back to the govt at a pre-determined scale.

Eg sell at end of 5th yr: Pur price + 10% of difference (valuation price & purchase price).

End of 6th yr: Pur price + 15% of difference (valuation price & purchase price) and so on, till the 10th/12th year.

If the valuation price is less than purchase price, then final buy back amt by the govt will be less than the original pur price.

[Wt_know]

just look at HK ... i got a relative in HK

add more stamp duty ... property price go up

add more sales tax ... property price go up

add more chilli ... property price go up 

because ... DEMAND > SUPPLY

when this happen ... property price is inelastic

keep pushing the limit ... until the buying slow down

eventually ... they will buy ... because LAN LAN has to buy ... there is no other choice ...

look at ourself ... how many property liang tehs liao? ... and you know what? 

property price is still going up .... you are lucky that is going up slowly ... even during COVID!

while we are recovering from covid ... our supply is slowing down ... so what's next? you guess ....

Edited June 29, 2021 by Wt_know

[Beanoyip]

Wanna follow Aust's CGT? Even primary residential homes in Aust don't get CGT...

[Volvobrick]

1 hour ago, Jamesc said:

Asking the gov to tax us more?

If I was the gov I will say

"OK lah since you all ask for it."

Her rice bowl mah. Don't pecah lubang. 

[Wt_know]

3 minutes ago, Volvobrick said:

Her rice bowl mah. Don't pecah lubang. 

just like smart alec propose VES "could" reduce car price because of "rebate" ? muahahahaha 

[Beregond]

totally agree, 

say before, HDB  should not be a mean/way to make money by any parties

it must be keep at the min cost value to serve the purpose of providing affordable housing for the local.

[Jtis]

6 minutes ago, Beregond said:

totally agree, 

say before, HDB  should not be a mean/way to make money by any parties

it must be keep at the min cost value to serve the purpose of providing affordable housing for the local.

Completely agree because this is supposed to be public housing, not private housing. The way things are going, housing prices are escalating because it is being pushed up by expectations from a few outlier transactions, and I am worried if the next generation can afford HDB prices. Everyone is expecting to profit handsomely from selling their HDB. Taxes won't work because it will just jack prices further up, the only way IMO is to try to remove the ability for ppl to get a windfall from selling their HDB housing.  

Increased MOP is potentially a gd idea, although there are potentially practical drawbacks like if families somehow need to upgrade to a bigger place for an expanding family.  If only there is a requirement to return the flat to hdb at a fair price for selling, for balloting by new flat applicants. That removes the windfall factor and the incentive to drive prices up. But then, I am realistic that probably won't work cos the real estate industry will be badly impacted if that source of revenue is removed. 

[13177]

2 hours ago, kobayashiGT said:

Erm. I am selfish in this context cause I haven't bought my first HDB yet and I am worried that I cannot afford one. So tax please!

But then again, @mikk123 is right also. 😂

 

No scare no scare, buy non mature estate 2 room bto, you can afford de no problem one. Dont buy popular mature estate resale flat, the price is cut throat. 😨

[Watwheels]

Because of the pandemic it has caused much delay to the launching/building of bto flats and has made ppl choose resale flats instead. I think this is fueling the demand. The sudden surge in demand for building material(after the lifting of restrictions) has also gone up. Most significant price increase are for metals or steel.

Bad news is it will affect upcoming bto projects too. How much price increase and how long it will last is anyone's guess. Those who need a flat to stay will really cry father cry mother. What is the est waiting time now for the new bto project to complete? 

[Atonchia]

Then EC also must tax... 

Wah everyone so supportive 

I guess the 100b gap due covid.... can close faster already 

Tax lah.... capital gain tax, estate tax... 

All fair. 

[Wt_know]

9 minutes ago, Watwheels said:

Bad news is it will affect upcoming bto projects too. How much price increase and how long it will last is anyone's guess. Those who need a flat to stay will really cry father cry mother. What is the est waiting time now for the new bto project to complete? 

price once go up will never come down ... i say one ... 

just like my chap chai peng dabao ... donkey years ago when oil hit >US$100 ...

cry papa cry mama must add $0.20 to dabao ... now becomes standard liao even oil price get down to US$30!

Edited June 29, 2021 by Wt_know

[Watwheels]

9 minutes ago, Wt_know said:

once go up ... will never come down ... i say one ... 

like my tabao ... donkey years when oil hit US$100 ... must add $0.20 to dabao ... then it become standard liao !

Sad to say that is true as well.

Property prices once they go up it will never come down as long as there is consistent demand. Looking at the white paper population....it will only go higher and higher.

This is really a problem. When young couples get married and see the property prices so high whether it is resale or bto(somemore have to wait long long), sian 1/2. We might also see record low birthrates for the coming years. And young ppl really dont see the point of getting hitch and stay with parents for good.

Edited June 29, 2021 by Watwheels

[Atonchia]

10 minutes ago, 13177 said:

No scare no scare, buy non mature estate 2 room bto, you can afford de no problem one. Dont buy popular mature estate resale flat, the price is cut throat. 😨

Future public housing need probably majority single or double occupant only. All the HP/mobile/ social media generation. 

All smaller units to meet changing housing needs robotics and AI to take care of aged generation needs. 

Or hostel / Dorm type with communal / recreational facilities.... 

[Old-driver]

3 hours ago, kobayashiGT said:

Damn. I have found my home in the coming future le. 😭

https://www.decathlon.sg/p/8384152-108565-inflatable-camping-tent-air-seconds-41-4-person-1-room.html?queryID=733c69d3893f1538f532a9b484ad579d

Dunno should I get the east coast park lot, or the west coast park lot. hahaha.

This one is District Tent wor.... 🤣

Edited June 29, 2021 by Old-driver

[Voodooman]

All these mark to market and asset enhancement policies for people to get paper rich on a depreciating 99 leasehold assets are just brilliant (but now they say don't assume enbloc hor), peehaps we should do it for medical services and all other public goods. 

 

Huat ah! 

[kobayashiGT]

47 minutes ago, Old-driver said:

This one is District Tent wor.... 🤣

I say first ah. I book my district tent liao.