Prior to Budget 2014 (to be tabled next month), speculation has rift up on a few proposal to tighten the rules, especially on property sector. Following the outcry from public stating the alarming high property prices, measure should be taken to tackle the issue before bubble was formed.
The Bubbling Biz...
Among the measures being proposed were:
- Non-other than Real Property Gain Tax (RPGT)
- Higher Stamp Duty:~ 5% of purchase price for 3rd property~ 7.5% for 4th property~ 10% for 5th property onward
- Loan-to-Value ratio reduce to 60% for 3rd property onward
While the above info need to be ascertained further, some banks already implemented their in-house ruling. What's that? It was to limit the maximum term for refinancing of property to 10 years. Yes. Sooner or later, all of the banks will follow.
* Please note that the above 3 rules need to be ascertained further. Stay tune!