Updated: 05/27/2014 01:50

MP suggests reviewing some cooling measures to help upgraders

MP suggests reviewing some cooling measures to help upgraders

MP for West Coast GRC, Foo Mee Har, says some cooling measures should be reviewed to make it easier for more Singaporeans to upgrade their homes. 

Speaking in parliament, she says for example, the additional buyer's stamp duty or ABSD could be collected upon completion of the new property rather than upfront. 

Whilst she appreciated the need for TDSR to avoid over-commitment, Ms Foo says the combined burden of maximum loan value at 50 per cent and ABSD of 7 per cent up-front cash, will usually put the upgrade out of reach. 

She also suggests that if the upgrader sells the first flat within a specified period, he should not need to pay ABSD at all. 

And if the upgrader ultimately ends up owning only one property, then the government should also allow an 80 per cent loan to value ratio for those upgrading to private property. 

This aligns it with same rules for upgrading to Executive Condominium. 

The ratio indicates how much cash a buyer has to put down when buying a home, so a lower cap means buyers have to use more of their own cash rather than borrowed money to finance home purchases. 

"'Home ownership has made an enormous contribution to leveling up our society'. We should therefore review the policies so that genuine upgraders have a chance to realize their aspirations and 'level up'."

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