Wednesday, June 18, 2008

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Property tax raised twice in a year: Owner-Occupied Properties Penalised by Property Boom

Owner-occupied properties, including the more than 90% of HDB flats, were penalised by higher property tax because the recent property boom has resulted in higher property valuation. Yet, owners of these properties have nothing to gain from the property boom, unlike property investors who see higher rental return.

This prompted a Straits Times reader to ask: Fair for the Government to increase property tax twice within a year when many are struggling to make ends meet?

The Straits Times, Jun 18 2008
IN SEPTEMBER last year, the Inland Revenue Authority of Singapore (Iras) revised the annual value of our property and barely half a year later, it has once again revalued it upwards.
Is it fair for the Government to increase property tax twice within a year, especially when many people are struggling to make ends meet in the face of rising cost of living?
The pain is all the more unbearable for people who are retired and living on their savings.
This latest upward revision of the annual value of our property is all the more incomprehensible when recent press reports revealed that some newly launched developments are seeing a slide in prices.

It's common knowledge that the IRAS is slow to respond to the change in the property market. What makes it worse now is the all time high inflation, so home owners find themselves squeezed from all sides, and in this case, does not even look justifiable.

May also want to read:

History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Property Price Index Graph Plotter & Online Property Valuation


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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.

Smart Buyer :)