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In March of 2019, Singapore was ranked as one of the most expensive cities in the world for the sixth year in a row.
In an effort to avoid the new and increased tax on homes in Singapore that are not used as permanent residences, parents are buying luxury homes in their children's names, Bloomberg reported.
Trend - Canada - Buyers - Mansions - College
The trend extends to Canada, where buyers are renting mansions to college kids to avoid a new empty-home tax.
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Singapore - Cities - World
Singapore is one of the most expensive cities in the world.
Unsurprisingly, wealthy buyers dominate its housing market: In July, for example, British billionaire James Dyson bought the country's most expensive penthouse for $54.2 million.
Trend - Parents - Singapore - Homes - Children
But now, a new trend is emerging: Parents in Singapore are buying expensive homes and putting them in their children's names, and it might be an effort to avoid an uptick in second- and third-home taxes, Bloomberg reports.
Singapore first put an additional buyer's stamp duty (ABSD) — a tax on homes that are not used as permanent residences— into place in 2011. At the time, buyers were grouped into three categories with varying rates: Singapore citizens, Singapore permanent residents, and foreigners or non-individuals.
Bloomberg - Singaporeans - Wealth - Property - Investments
According to Bloomberg, many Singaporeans accumulate wealth through property investments. For these buyers, the original ABSD on second homes stood at 7% and 10% for all additional home purchases.
In July of 2018, in an attempt to cool its market, Singapore increased the ABSD and added two buyer categories to the existing three: entities and developers.
Singapore - Citizens - ABSD - % - Homes
For Singapore citizens, the ABSD jumped to 12% for second homes and 15%...
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