Taxation Strategies

[findleowong]

Dear all,

Does anyone know, what are the different types of taxation strategies available to invest in the property market?

Thanks

[Dennis Ng]

Dear all,

Does anyone know, what are the different types of taxation strategies available to invest in the property market?

Thanks

too generic a question until not sure what you're asking.

Taxation in Singapore is pretty straightforward and simple and NOT a main strategy to make money in property.

For instance, there is NO capital gains tax on properties in Singapore, unlike other countries, which might have different level of capital gain tax depending on taxation strategies.

[findleowong]

Hi Dennis,

I do agree the question I posted is generic. Especially, going through your book, on page 84.

You have mention on the rental. Rental at $3000. Other cost like interest, property tax, fire insurance, etc are around $1500.

Submission on the tax should be $1500 instead $3000.

I like to find out are there any other taxation strategies. I heard something on buying either the person name or other people name. Not sure on it & it got to do with the taxation.

[Dennis Ng]

Hi Dennis,

I do agree the question I posted is generic. Especially, going through your book, on page 84.

You have mention on the rental. Rental at $3000. Other cost like interest, property tax, fire insurance, etc are around $1500.

Submission on the tax should be $1500 instead $3000.

I like to find out are there any other taxation strategies. I heard something on buying either the person name or other people name. Not sure on it & it got to do with the taxation.

make sure it is legal.

[findleowong]

Dear all,

to invest in property, should we purchase it with our personal name or through trust or company?

I heard there's some difference in the tax.

Thanks
Leo

[Dennis Ng]

Dear all,

to invest in property, should we purchase it with our personal name or through trust or company?

I heard there's some difference in the tax.

Thanks
Leo

Hi Leo,
in Singapore, doing through Trust you might have problem getting financing for the property. Trust is a common way in Australia to reduce tax though.

For an average investor, owning not more than 3 properties, the simple way is to own it through Personal name, not company.

For company, if you borrow, you still need to Guarantee the debt. Interest rate charged typically would be higher and the percentage of financing might be lower eg. 70% instead of 80%.

[findleowong]

Dear all,

to invest in property, should we purchase it with our personal name or through trust or company?

I heard there's some difference in the tax.

Thanks
Leo

Hi Leo,
in Singapore, doing through Trust you might have problem getting financing for the property. Trust is a common way in Australia to reduce tax though.

For an average investor, owning not more than 3 properties, the simple way is to own it through Personal name, not company.

For company, if you borrow, you still need to Guarantee the debt. Interest rate charged typically would be higher and the percentage of financing might be lower eg. 70% instead of 80%.

Hi Dennis,

thanks for the information. Indeed, it's informative whereas you operate the housing loan business & know the inside out.

Greatly appreciated it.

Thanks
Leo

[Dennis Ng]

Dear all,

to invest in property, should we purchase it with our personal name or through trust or company?

I heard there's some difference in the tax.

Thanks
Leo

Hi Leo,
in Singapore, doing through Trust you might have problem getting financing for the property. Trust is a common way in Australia to reduce tax though.

For an average investor, owning not more than 3 properties, the simple way is to own it through Personal name, not company.

For company, if you borrow, you still need to Guarantee the debt. Interest rate charged typically would be higher and the percentage of financing might be lower eg. 70% instead of 80%.

Hi Dennis,

thanks for the information. Indeed, it's informative whereas you operate the housing loan business & know the inside out.

Greatly appreciated it.

Thanks
Leo

Hi Leo, yes, I have clients in Australia as well, so I'm quite familiar with the situation in Australia too.