{"id":20390,"date":"2018-10-02T09:26:58","date_gmt":"2018-10-02T01:26:58","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=20390"},"modified":"2022-07-01T05:00:23","modified_gmt":"2022-06-30T21:00:23","slug":"sell-vs-rent-out-property","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/sell-vs-rent-out-property\/","title":{"rendered":"Sell vs rent out your property: How to make the right decision"},"content":{"rendered":"
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Singapore private properties are one cooling measure away from becoming penguin sanctuaries. The government really wants to lower or freeze prices, which raises a conundrum: Will your property asset possibly turn into a liability?<\/em> And if so, should you keep renting it out, or sell it now if you have a good offer? There\u2019s never a simple answer to the sell vs rent question, but here are some guidelines to consider.<\/span><\/p>\n

But first, an important note about the Sellers Stamp Duty.<\/b><\/p>\n

Just in case you don\u2019t know about it, there\u2019s a Sellers Stamp Duty (SSD) on property sales. This is a tax you have to pay when you sell your property if the sale occurs within the first three years of your purchase.<\/span><\/p>\n

From the date of completion onwards, the SSD is a hefty 12% of the sale price on the 1st year, 8% on the 2nd year, and 4% on the 3rd year.<\/strong> There\u2019s no SSD beyond from the 4th year onwards.<\/span><\/p>\n

You can probably tell that it\u2019s a bad idea to sell your house during the SSD period, as it\u2019s unlikely you\u2019ll make a decent return given the high tax. <\/span><\/p>\n

So as to selling your house vs renting it out, it\u2019s almost always a bad idea within the first three years. Unless you have a financial emergency on your hand which requires offloading your property, we’d advise renting over selling during the first three years, and only considering selling after the SSD liability period has passed.<\/span><\/p>\n

Now we can get into\u2026<\/span><\/p>\n

Sell vs rent out your property: How to make the right decision<\/b><\/h3>\n

The main considerations here will be:<\/span><\/p>\n