PROPERTY BLOG‎ > ‎

MOVE TO HIGH YIELD TAX FRIENDLY COMMERCIAL INVESTMENT ASSET

posted Jul 26, 2015, 7:54 PM by Benjamin Ng   [ updated Jul 26, 2015, 9:38 PM ]

So what are the income producing asset which you can own that that gives you an income which you can choose to pay personal tax or corporate tax on. Property is one such asset class. But we are at the wrong end of the property cycle, right? Absolutely, steer clear of residential property unless you can find massive discounts or a below market value deal which we are sourcing for our high net worth clients like yourself all the time. Yes, there are still such deals in the market, you just need to find them.  Ask us.

But are we missing a trick here? Besides residential property, we have ignored and forgotten about commercial property like office and shop units. Commercial property like office units is still a valid investment option. In fact, a more than valid option and investment returns is very good indeed. Firstly, there is no additional buyers stamp duty (ABSD), sellers stamp duty (SSD) when you buy a commercial office unit. The GST that you paid is also claimable. You can technically buy today and sell tomorrow without penalty provided you can find a buyer. This makes this asset quite liquid and very attractive.

In fact, if you focus only on the Central Business District (CBD), only 3% of office units there is owned by private individuals or private companies. Surprising, right? Yes, 97% of CBD office buildings and offices are owned by the Singapore government, government owned companies and REITS.

Currently, smaller office units are in short and limited supply and rent is rising yearly. In fact, office rental costs in Singapore is lower than that of its competitors like Hong Kong, Japan, and China. So we are looking at the prospects of office rental to continuous to rise upwards in the years ahead. This increasing rental yield will drive the asset value up and capital appreciation of office units prices.

Of course, we can advise on the various purchase vehicles and options. Like registering a gst registered private company, buying it under an established company, husband and wife limited liability partnership company, etc.

Your main topic of the week: How you can transfer your commercial office unit to your children with no penalty and with no stamp duty. No TDSR – What are the option to achieve this.

Say YES to:
  1. Transfering your commercial office property to your children with no penalty, no stamp duty – we show you how

  2. Are you affected by Total Debt Servicing Ratio (TDSR) ? – How you can be not affected by TDSR in a company structure purchase of a commercial property

  3. If you are an owner of a professional services firm like law firm, accountant firm, IT firm, etc. You should be buying, operating and investing in office units in a Grade A building in the CBD. Buy two and rent out one, buy three and operate two and rent out one. Buy five and rent out to a big single MNC client.