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Anonymous

26 Oct 2020

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Property

What is the best bet as a first property for capital gain after MOP? HDB? EC?

I’ve seen some going for EC as first property then after MOP, one buys over the share, while the other spouse buy a new condo as investment.. not sure if this is a good strategy?

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That's Decoupling of your EC from one owner to another owner.

But that will require the buyer to be financially able to:

1) Take up the loan of the remaining outstanding loan

2) Pay the seller his CPF used + Accrued interest.

In such a case, you'll do that if:

1) You're going to milk the EC by renting it out.

2) Going to continue staying in the house and rent out a private property you are going to buy.

Why people do this: So that they can have 2 properties under different spouse name and remove the effect of paying ABSD of 12%.

Some couples are not able to do this is because the next house that they want to buy it's a bigger house and one person's income is not able to substantiate to get the new house loan. As such this solution might not be viable.

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