Asia is faced an asset bubble, due to speculation in real estates caused by low interest rate, due to stimulus spending by governments in many countries. Read this report.
Private property owmers are buying HDB flats to rent out for high returns. HDB should enforce rules that permission must be obtained before whole flat is allowed to rent out. Additionally IRAS should allow (already a rule but seldom enforce) only one property per househlod for owner/occupier property tax.
BTW, these HDB 'homeowners' who rent out their flats also take advantage of system by paying the lower property tax rate of homeowners. And they don't declare rental income.
Indirectly, genuine tax payers are also subsidising them.
One way to curb speculation is for IRAS to tax those who sub-sell their property within 3 years of booking and before completion.
ReplyDeletePrivate property owmers are buying HDB flats to rent out for high returns. HDB should enforce rules that permission must be obtained before whole flat is allowed to rent out. Additionally IRAS should allow (already a rule but seldom enforce) only one property per househlod for owner/occupier property tax.
ReplyDeleteBTW, these HDB 'homeowners' who rent out their flats also take advantage of system by paying the lower property tax rate of homeowners. And they don't declare rental income.
ReplyDeleteIndirectly, genuine tax payers are also subsidising them.